In this article, we are going to look at the 5 Best Performing AI Stocks to Buy. For a longer list and more details on how we picked these stocks, you can go to 10 Best Performing AI Stocks to Buy.
5. Keysight Technologies, Inc. (NYSE:KEYS)
6-Month Performance: 98.46%
Keysight Technologies, Inc. (NYSE:KEYS) is one of the best-performing AI stocks to buy. On March 30, Truist initiated coverage of Keysight Technologies, Inc. (NYSE:KEYS), giving the stock a Hold rating and setting the price target at $310.
The research firm highlighted Keysight Technologies, Inc.‘s (NYSE:KEYS) strong position as a global leader in test and measurement, noting its scale and market share. However, Truist pointed out that the stock’s valuation is relatively high, trading at a 10-times premium compared to the S&P 500 Index. This led to a Hold rating on the stock.
Source: unsplash
Earlier, on March 23, Citi raised its price target on Keysight Technologies, Inc. (NYSE:KEYS) from $282 to $320 and kept a Buy rating on the stock. The research firm pointed to growing confidence in the company’s ability to grow its AI sales.
In other news, Brown Brothers Harriman, an investment management company, released its Q4 2025 investor letter for the BBH Select Series – Mid Cap ETF. It stated the following regarding Keysight Technologies, Inc. (NYSE:KEYS) in the letter:
“Keysight reported solid fourth quarter fiscal year results, with revenue and earnings both above the guided range, and forecasted sustained strong growth in fiscal year 2026. AI-related demand is driving the fastest growth in Keysight’s wireline business and represented approximately 10% of Keysight total revenue in 2025; however, the growth is broad-based, with all segments growing high-single digits or better, and fourth quarter orders grew 14%. Supported by a robust pipeline, management forecasts fiscal year 2026 organic revenue growth of at least 7% and EPS growth of at least 10%. Overall, Keysight is extremely well positioned to benefit from ongoing technology innovation across the wireless, networking, and semiconductor markets.”
Keysight Technologies, Inc. (NYSE:KEYS) is a leading American company providing electronic design, emulation, and test solutions to support innovation in the communications, aerospace, defense, automotive, semiconductor, and general electronics markets.
4. Micron Technology, Inc. (NASDAQ:MU)
6-Month Performance: 118.18%
Micron Technology, Inc. (NASDAQ:MU) is one of the best-performing AI stocks to buy. On April 9, Lynx Equity raised its price target on Micron Technology, Inc. (NASDAQ:MU) from $700 to $825. The research firm pointed to extended capacity sell-outs and better visibility into future revenue.
According to Lynx Equity, recent checks show that Micron Technology, Inc. (NASDAQ:MU) has sold out its high-bandwidth memory (HBM) capacity through 2027. This extends beyond the company’s earlier guidance of capacity being sold out only through 2026. Lynx Equity also noted that the company’s DDR5 and LPDDR5 capacity could be sold out through 2027 as well.
The research firm pointed out that Micron Technology, Inc. (NASDAQ:MU) is likely negotiating supply and pricing agreements for 2028, after allocating its 2027 supply to key customers. Lynx Equity expects the company’s revenue to grow by 40% in fiscal 2028, much higher than current market expectations that suggest flat or declining growth.
Lynx Equity added that 2028 could be the year when new DRAM wafer capacity comes online. The research firm recommended aggressive buying ahead of the start of the earnings season.
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.
3. Coherent Corp. (NYSE:COHR)
6-Month Performance: 167.09%
Coherent Corp. (NYSE:COHR) is one of the best-performing AI stocks to buy. On April 9, Coherent Corp. (NYSE:COHR) announced new progress in its silicon carbide (SiC) epitaxy technology. The new thick epitaxy capabilities can power devices up to 10kV to support next-generation AI data centers and industrial power uses.
The company is continuing to grow its silicon carbide technology portfolio, from substrates to advanced epitaxy. This allows Coherent Corp. (NYSE:COHR) to support customers across a range of industries such as automotive, energy, and industrial sectors. It also strengthens its position in high-efficiency data center power systems, an area that is growing quickly.
The latest 150mm and 200mm thick epitaxy platforms by Coherent Corp. (NYSE:COHR) will now be able to support device architectures up to 10kV in production. The company also said that these platforms can go beyond 10kV, offering strong performance in demanding conditions.
According to the report by Coherent Corp. (NYSE:COHR), these improvements allow customers to design smaller and more energy-efficient power conversion systems for both multi-megawatt data centers as well as industrial infrastructure, while also complying with the strict reliability standards of large-scale deployments.
Coherent Corp. (NYSE:COHR) is an American multinational company that specializes in photonics. It serves datacenter, communications, and industrial markets.
2. Western Digital Corporation (NASDAQ:WDC)
6-Month Performance: 188.94%
Western Digital Corporation (NASDAQ:WDC) is one of the best-performing AI stocks to buy. On March 31, Bernstein upgraded its rating on Western Digital Corporation (NASDAQ:WDC) from Market Perform to Outperform and raised its price target on the stock from $170 to $340.
Bernstein noted that memory and hard disk drive stocks have seen a significant sell-off due to concerns linked to Google’s TurboQuant report. However, the research firm believes that TurboQuant will have “zero impact” on hard disk drive demand and “negligible impact” on NAND demand. Bernstein also pointed to Western Digital Corporation’s (NASDAQ:WDC) innovation day as evidence of a strong product roadmap.
Earlier, on March 23, Wedbush said that AI demand is now strong enough to significantly increase memory prices. The firm expects DRAM prices to rise by around 130% to 150% from Q4 2025 levels in the first half of the year, with NAND prices also expected to not be far behind.
Wedbush explained that the situation is driven by tight supply and accelerating demand from AI infrastructure. The firm said that Western Digital Corporation (NASDAQ:WDC) is likely to benefit from these trends, as hard disk drive vendors are expected to push for more aggressive pricing in future contracts.
Western Digital Corporation (NASDAQ:WDC) is an American company that manufactures hard disk drives and other data storage products.
1. Lumentum Holdings Inc. (NASDAQ:LITE)
6-Month Performance: 458.86%
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best-performing AI stocks to buy. On April 10, Aletheia Capital raised its price target on Lumentum Holdings Inc. (NASDAQ:LITE) from $500 to $1,225 and kept its Buy rating on the stock.
The research firm pointed out that the large increase in the price target reflects significant upgrades to its earnings per share forecasts. Aletheia Capital now expects the company’s earnings per share to grow four times between fiscal years 2026 and 2028. This growth is expected to come from revenue expanding by 2.5 to 3 times and a 15 percentage point improvement in margins over the same period.
Aletheia Capital pointed to three structural tailwinds supporting this strong outlook. First, demand for EML lasers is stronger than expected, with a compound annual growth rate of 75% to 80% supported by the rapid migration to 200Gbps diodes, which is doubling content value. Second, Lumentum Holdings Inc. (NASDAQ:LITE) is continuing to gain market share and currently holds about 90% share in the 200Gbps segment. Third, sales of OCS are expected to see significant growth in fiscal years 2026 through 2027.
Aletheia Capital noted that Lumentum Holdings Inc. (NASDAQ:LITE) is one of the fastest-growing stocks in the AI supply chain and the firm continues to include the stock in its Alpha Portfolio.
Lumentum Holdings Inc. (NASDAQ:LITE) designs and manufactures innovative optical and photonic products and technologies that power the networks and infrastructure behind AI, cloud computing, and next-generation communications.
While we acknowledge the potential of LITE 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 LITE and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
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