In this article, we will look at the 15 Safe Stocks for Beginners to Buy in 2026.
On June 24, Tom Lee, Head of Research at Fundstrat Global Advisors, appeared on CNBC to talk about how the semiconductor selloff is a buying opportunity, earnings growth is supporting higher stocks, and the S&P 500 has upside beyond current targets.
He was of the view that the market is trying to understand the new narrative around the Mag 7, because they went from asset-like companies that produce a lot of cash flow to ones that are more balance sheet intensive, actually funding what will look like a larger balance sheet. He believes that investors are going to start looking at that balance sheet as a workforce. The reason they are spending so much money is to essentially replace human endeavors with AI, and, according to him, that balance sheet is going to be deployed and generate returns. Lee thus thinks that over time, investors are going to start viewing that as a moat. However, he also stated that we are in a transition period of that narrative.
READ ALSO: 10 Trending US Stocks to Buy Now AND 10 Best Low Volatility Stocks to Buy Under $50.
His estimation for the S&P close price is 7700, with him stating that we are in mid-year and at that first bucket that you show there. However, he does believe that there exists a case for upside to exist between now and the year-end. Lee also thinks that earnings estimates just in the first half have pushed up next year’s estimates by almost $50. In the next six months, that could increase again, and he thinks that multiples should, of course, be expanding because there is durability to this level of spending.
With these broader market trends in view, let’s look at the top safe stocks for beginners to buy in 2026.
Our Methodology
We used stock screeners and online sources to identify the best stocks for beginners with solid financials and strong balance sheets. We then selected the top 15 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on June 25.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
15 Safe Stocks for Beginners to Buy in 2026
15. QUALCOMM, Inc. (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
QUALCOMM, Inc. (NASDAQ:QCOM) is one of the safe stocks for beginners to buy in 2026. Reuters reported on June 24 that QUALCOMM Incorporated (NASDAQ:QCOM) expects to generate $15 billion in sales from its data center business by 2029, moving beyond its core smartphone chips. Chief Financial Officer Akash Palkhiwala stated in an investor presentation that the data center business will bring in $5 billion for fiscal 2027, with $1 billion coming from the new custom-chip customers. QUALCOMM Incorporated (NASDAQ:QCOM) also stated that it anticipates $40 billion in revenue from chips outside its smartphone stronghold by 2029, which is up from previous estimates of $22 billion. By then, handsets would only make up a third of its chip revenue.
In another development, Bloomberg reported on June 22 that according to people familiar with the matter, QUALCOMM, Inc. (NASDAQ:QCOM) is in advanced talks to acquire Modular Inc, the AI infrastructure software company, in a transaction valued at around $4 billion. It further reported that a transaction may be announced as soon as the upcoming week. Bloomberg added that the people asked not to be identified since the information is private.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including 3G, 4G, and 5G wireless connectivity and high-performance and low-power computing, including on-device AI. The company operates across various high-growth markets, including autonomous vehicles and smartphones. QUALCOMM’s Snapdragon augmented reality technology is the next generation of mobile computing.
14. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 119
The Walt Disney Company (NYSE:DIS) is one of the safe stocks for beginners to buy in 2026. The Walt Disney Company (NYSE:DIS) and Omnicom announced on June 23 a new collaboration between Omnicom Media and Disney Advertising to implement a connected TV ad solution enabling dynamic sequential storytelling across both video on demand and live programming. The two plan to announce the partnership at Cannes Lions today. The collaboration is already live in the United States and is set to expand to Europe and Latin America later this year. The solution brings together Disney’s identity graph, Acxiom’s identity capabilities, Omni’s measurement platform, and Innovid’s creative sequencing technology to “replace repetitive streaming ads with dynamic, personalized storytelling”.
In a separate development, The Walt Disney Company (NYSE:DIS) and Royal Philips announced on May 28 the incorporation of beloved Disney animated characters and stories directly into Philips Ambient Experience for MRI at medical facilities in 87 countries across the globe to support children undergoing imaging procedures. Management stated that the immersive environment can help children by diverting attention from the clinical setting, creating a more engaging and comforting experience during scans, and helping more children complete their exams successfully.
The Walt Disney Company (NYSE:DIS) operates an international family entertainment and media enterprise. The company owns and operates television and radio production, distribution, and broadcasting stations, amusement parks, direct-to-consumer services, and hotels. Its operations are divided into the following business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
13. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 123
Tesla, Inc. (NASDAQ:TSLA) is one of the safe stocks for beginners to buy in 2026. Reuters reported on June 25 that Tesla, Inc. (NASDAQ:TSLA) announced on Thursday plans to raise production at its Berlin plant by 20% to 7,500 vehicles per week from October this year. The company stated that the planned increase in production means it will recruit a further 1,000 employees. It previously announced a capacity increase at the plant company in April to meet higher demand for the Model Y, and said in May that it would increase investment in battery cell production at the plant.
Reuters reported on June 3 that Tesla, Inc. (NASDAQ:TSLA) is rolling out its unsupervised robotaxis in the Austin Metro area in Texas in an attempt to speed up its autonomous ride-hailing operation. It stated that a wider adoption of the company’s full self-driving software and an expansion of the robotaxi service are key to Tesla’s (NASDAQ:TSLA) growth strategy since its pivoted focus from EVs to AI and robotics. Tesla’s official robotaxi account stated in a post on X that: “Unsupervised Robotaxi now in the entire Austin Metro area”.
Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells high-performance electric vehicles and energy generation and storage systems. It operates through two segments: energy generation and storage, and automotive. However, the company isn’t merely an automotive manufacturer; investors regard it as a technology company due to its other projects, most of which feature AI.
12. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 131
JPMorgan Chase & Co. (NYSE:JPM) is one of the safe stocks for beginners to buy in 2026. JPMorgan Chase & Co. announced on June 25 the naming of Doug Petno and Troy Rohrbaugh, Co-CEOs of the Commercial & Investment Bank, as Co-Presidents of the company, effective immediately. The company stated that in addition to the new roles, Petno will become the sole CEO of the CIB, and Rohrbaugh will become the CEO of Consumer and Community Banking. It added that promotions of Petno and Rohrbaugh to Co-Presidents and sole CEOs of the company’s two largest businesses mark a significant step in the Board’s ongoing succession planning process to ensure “continued exceptional leadership at the highest levels of the company”.
In a separate development, JPMorgan Chase & Co. (NYSE:JPM) announced on June 24 that its Board of Directors intends to increase the quarterly common stock dividend to $1.65 per share, up from the current $1.50 per share, for fiscal Q3 2026. It added that the firm’s quarterly common stock dividends are “subject to approval by the Board of Directors at the customary times that those dividends are declared”.
JPMorgan Chase & Co. (NYSE:JPM) is a financial holding company that provides financial and investment banking services. Its operations are divided into the following segments: Consumer and Community Banking (CCB), Commercial and Investment Banking (CIB), Asset and Wealth Management (AWM), and Corporate.
11. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
Eli Lilly and Company (NYSE:LLY) is one of the safe stocks for beginners to buy in 2026. Eli Lilly and Company (NYSE:LLY) received a rating update from Leerink on June 25. The firm lifted the price target on the stock to $1,232 from $1,119 and maintained an Outperform rating on the shares.
In a separate development, Eli Lilly and Company (NYSE:LLY) and BioArctic AB announced on June 22 their entry into a research and collaboration agreement regarding a potential new treatment combining BioArctic’s proprietary BrainTransporter technology with an undisclosed Lilly drug candidate in neurodegeneration. Management stated that BioArctic will receive USD 30 million in upfront payment as part of the agreement, and will be eligible to receive additional milestone payments of up to USD 770 million in addition to the upfront payment. The company will also be entitled to tiered mid-single-digit royalties on future global product sales if the product reaches the market.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
10. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
Applied Materials, Inc. (NASDAQ:AMAT) is one of the safe stocks for beginners to buy in 2026. Applied Materials, Inc. (NASDAQ:AMAT) announced on June 25 the introduction of a suite of new chipmaking systems to build the advanced 3D chip architectures that power next-generation AI. Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials, Inc. (NASDAQ:AMAT), stated that the transistor and materials technologies that previously drove performance gains in leading-edge logic are now becoming essential in DRAM, adding that as “DRAM scales to meet the bandwidth demands of HBM and AI workloads, the distinction between logic and memory process technology is converging. By leveraging our epitaxy leadership in leading-edge logic, Applied is uniquely positioned to drive this transition in DRAM.”
In another development, Reuters reported on June 16 the signing of a long-term deal between EssilorLuxottica and Applied Materials, Inc. (NASDAQ:AMAT) for the development of augmented reality display technology and AI glasses. The companies reported that they would scale up the commercialisation of AI glasses, with the research and development focusing on advanced optical technologies.
Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions used to produce semiconductors and also focuses on the design, production, development, and servicing of critical wafer fabrication tools used for customers for the manufacture of semiconductors. The company’s operations are divided into the following segments: Semiconductor Systems and Applied Global Services (AGS).
9. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) is one of the safe stocks for beginners to buy in 2026. Reuters reported on June 22 that Lime, backed by Uber Technologies, Inc. (NYSE:UBER), is seeking a valuation of up to $1.66 billion in its U.S. IPO as it looks to capitalize on improving investor appetite for new listings. It further reported that a rebound has been observed in the IPO market, which was caused by the volatility due to the Iran war, and many hopeful issuers are pushing ahead “with their plans to go public as strong equity markets and blockbuster IPOs shore up investor demand”. Reuters added that some selling shareholders are looking to sell about 6.96 million shares in total, which are priced between $24 and $26 apiece, aiming to raise up to $181.9 million.
In a separate development, Reuters reported on June 8 that Uber Technologies, Inc.’s (NYSE:UBER) users can sign up for a chance to ride in the first robotaxis in London as soon as the go-ahead is achieved from regulatory authorities for the launch, which is expected to arrive in the coming months. It further reported that the robotaxis will employ AI technology from the British startup Wayve and will drive themselves around the city’s streets. However, they will initially have trained operators behind the wheel to monitor the system.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. It is pioneering the introduction of autonomous vehicles to move people and goods more reliably, efficiently, and affordably.
8. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the safe stocks for beginners to buy in 2026. Reuters reported on June 25 that Micron Technology, Inc. (NASDAQ:MU) surpassed the market valuation of Meta Platforms, and briefly Tesla, for the first time on Thursday. The company’s solid forecast allowed it to extend its AI-driven ascent, with its shares last up 18.4% at $1,236. Reuters reported that this gave it a market capitalization of $1.398 trillion, compared with Meta’s $1.392 trillion and Tesla’s market value of $1.4 trillion.
Micron Technology, Inc. (NASDAQ:MU) also received a rating update from DA Davidson on June 25. The firm lifted the price target on the stock to $2,000 from $1,500 and maintained a Buy rating on the shares. The rating update came after the company’s fiscal Q3 earnings beat, with the firm telling investors in a research note that Micron Technology, Inc. (NASDAQ:MU) has entered an era where it has some of the semi industry’s best visibility, which is a far cry from its historical role in the semi market. It further stated that the company’s yet another blowout quarter and positive forward-looking commentary suggest the memory cycle is far from over.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).
7. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is one of the safe stocks for beginners to buy in 2026. Visa Inc. (NYSE:V) announced on June 25 the launch of Visa Destinations in 10 major locations across the globe. Visa Destinations is a “passion-led travel platform” and is a move forward in the company’s attempt to redefine its role in the rapidly growing experience-driven travel economy.
Management stated that the initiative marks a strategic expansion of the company’s role, extending beyond payments, and positions it at the center of how trips are planned, discovered, and experienced by travelers. It added that according to Visa research, an increase can be observed in travelers choosing destinations based on experiences, purpose, and passion, instead of just geography. Visa Inc. (NYSE:V) stated that in 2025 alone, 4 in 10 American travelers made a trip to experience music, art festivals, or sports, with major cultural moments attracting international visitors and acting as catalysts for local economies.
Visa Inc. (NYSE:V) provides digital payment services. It offers credit cards, debit cards, prepaid products, global automated teller machines, and commercial payment solutions.
6. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 201
Alphabet Inc. (NASDAQ:GOOG) is one of the safe stocks for beginners to buy in 2026. Alphabet Inc. (NASDAQ:GOOG) announced on June 24 that computer use is now a built-in tool that is supported in Gemini 3.5 Flash, delivering its best performance yet for agentic computer use tasks. Computer use was previously only available as a standalone Gemini 2.5 computer use model, but is now integrated natively in the main Gemini Flash model. Management further stated that with built-in computer use capability, 3.5 Flash can now be used by developers to reliably build custom agents capable of reasoning, seeing, and taking action across mobile, browser, and desktop environments.
In a separate development, Alphabet Inc. (NASDAQ:GOOG) announced on June 22 an expanded partnership between Google Cloud and Nokia, aimed at integrating Google’s Gemini models into Nokia’s network software suite, the Nokia Assurance Center. Management stated that by developing six AI agents built with Gemini, which is the most capable family of multimodal models by Google, Nokia will advance its capacity to help telecommunication providers resolve network issues quickly, reduce operational costs, and step towards fully automated, self-driving operations.
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube.
While we acknowledge the potential of GOOG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOG and that has 100x upside potential, check out our report about the cheapest AI stock.
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