In this article, we are going to look at the 5 Best Performing Blue Chip Stocks to Buy. For a longer list and more details on how we picked these stocks, you can go to 10 Best Performing Blue Chip Stocks to Buy.
5. Century Aluminum Company (NASDAQ:CENX)
6-Month Performance: 114.72%
Century Aluminum Company (NASDAQ:CENX) is one of the best-performing blue chip stocks to buy. On April 2, Century Aluminum Company (NASDAQ:CENX) reported that President Donald Trump’s new executive order will close valuation loopholes that importers were using to avoid tariffs on steel and aluminum. The company celebrates the recent executive order as it believes this move will help create a more level playing field for US manufacturers.
The Section 232 tariff on primary aluminum remains unchanged at 50%. According to the report by Century Aluminum Company (NASDAQ:CENX), it has increased US aluminum production by 10% since Section 232 was reinforced last year. The company also said it is investing for the long term and has committed billions of dollars to expand capacity, which it expects will double US production while also creating thousands of jobs over time.
Earlier, on March 12, Wells Fargo raised its price target on Century Aluminum Company (NASDAQ:CENX) from $61 to $69 and maintained an Overweight rating on the stock.
The research firm raised its aluminum price forecast after its recent supply-and-demand analysis showed a larger supply deficit expected in 2026. This was even before the risk of further Middle East smelter closures. Wells Fargo noted that “steep” electricity costs are also likely to support aluminum prices.
Century Aluminum Company (NASDAQ:CENX) is a global metals and mining company focused on bauxite, alumina, and aluminum. The company has operations in the US, Iceland, Jamaica, and the Netherlands.
4. Coherent Corp. (NYSE:COHR)
6-Month Performance: 124.94%
Coherent Corp. (NYSE:COHR) is one of the best-performing blue chip stocks to buy. On March 18, Stifel increased its price target on Coherent Corp. (NYSE:COHR) from $235 to $275 and maintained its Buy rating on the stock.
The research firm said that Coherent Corp.’s (NYSE:COHR) recent Technology Innovation Briefing at OFC 2026 strengthened confidence in the company’s position. This event came two weeks after NVIDIA Corporation (NASDAQ:NVDA) made a $2 billion strategic investment and committed to multi-billion dollar purchases. According to Stifel, Coherent Corp. (NYSE:COHR) is well-positioned as a broad vertically integrated photonic platform, benefiting from increased spending driven by the growth of AI data centers.
Earlier, on March 4, Coherent Corp. (NYSE:COHR) announced the launch of its CHR1074 224Gbps quad-channel transimpedance amplifier (TIA). This product is designed to support next-generation 800G and 1.6T optical transceivers.
According to the report by Coherent Corp. (NYSE:COHR), the CHR1074 is built for high-performance AI and cloud infrastructure. It offers ultra-fast link recovery and intelligent power management, which helps improve efficiency and reduce latency in modern data centers.
Coherent Corp. (NYSE:COHR) is an American multinational company that specializes in photonics. It serves datacenter, communications, and industrial markets.
3. Western Digital Corporation (NASDAQ:WDC)
6-Month Performance: 135.45%
Western Digital Corporation (NASDAQ:WDC) is one of the best-performing blue chip stocks to buy. On April 6, Morgan Stanley increased its price target on Western Digital Corporation (NASDAQ:WDC) from $368 to $380 and kept its Overweight rating on the stock.
Analyst Erik Woodring said the firm’s recent checks show that hard disk drive (HDD) demand continues to grow stronger. Morgan Stanley’s supply and demand tracker now suggests that shortages could last through 2028. The firm also noted that the price per terabyte is much stronger than previously expected. As a result, Morgan Stanley raised its estimates for Western Digital Corporation (NASDAQ:WDC).
Earlier, on April 1, Bernstein upgraded its rating on Western Digital Corporation (NASDAQ:WDC) from Market Perform to Outperform and raised its price target from $170 to $340. The firm said that a sharp decline in the share price, caused by concerns over Google’s new TurboQuant compression algorithm, has created a buying opportunity that does not reflect the underlying fundamentals.
Bernstein noted that TurboQuant targets only the KV cache used in AI inference and does not affect demand for hard disk drives. Analyst Mark Newman said that there is “zero impact to HDD demand.” TurboQuant’s impact on NAND flash memory, which is used to offload cold caches, is also said to be negligible.
Western Digital Corporation (NASDAQ:WDC) is an American company that manufactures hard disk drives and other data storage products.
2. Lumentum Holdings Inc. (NASDAQ:LITE)
6-Month Performance: 414.87%
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best-performing blue chip stocks to buy. On March 23, BNP Paribas increased its price target for Lumentum Holdings Inc. (NASDAQ:LITE) from $625 to $1,040 while keeping an Outperform rating. The research firm lifted its EPS estimates for the company. BNP Paribas now forecasts EPS of $25.89 in 2027 and $38.95 in 2028.
Additionally, on March 19, B. Riley said that it is “incrementally positive” on Lumentum Holdings Inc. (NASDAQ:LITE) after the company’s “impressive” presentations at the Optical Fiber Communication Conference. B. Riley has a Buy rating on the stock.
At the Conference, Lumentum Holdings Inc. (NASDAQ:LITE) showcased its technology and product demonstrations designed to meet the growing demands of next-generation AI and data center infrastructure.
Earlier, on March 18, Rosenblatt also reaffirmed its Buy rating on Lumentum Holdings Inc. (NASDAQ:LITE) with a price target of $900. The research firm pointed to the company’s position in AI optical technology and its growth potential through 2030.
Rosenblatt added that Lumentum Holdings Inc.’s (NASDAQ:LITE) focus on lasers positions it well to achieve margins similar to semiconductor companies. The firm also said that the company is making a case for $35 to $50 in EPS in fiscal 2028, with continued growth in fiscal 2029.
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.
1. Sandisk Corporation (NASDAQ:SNDK)
6-Month Performance: 479.01%
Sandisk Corporation (NASDAQ:SNDK) is one of the best-performing blue chip stocks to buy. On April 2, Mizuho recommended buying shares of Sandisk Corporation (NASDAQ:SNDK) after a recent decline linked to TurboQuant concerns.
Mizuho’s analyst told investors in a research note that TurboQuant was first explored in 2025 but new results recently highlight improvements in AI inference performance. The research firm noted that performance improvement “actually accelerates the adoption flywheel (Jevons paradox).” Mizuho also believes that the shift from copper to optical technology, which offers ten times more bandwidth, could increase spending on AI servers instead of reducing it. The research firm further stated that worries about OpenAI’s Sora video wind-down are misplaced and that memory demand could see an upside in 2027.
On April 3, Bernstein also showed confidence in Sandisk Corporation (NASDAQ:SNDK) by setting a price objective of $1,000 with an Outperform rating. The firm described the recent drop in the share price, caused by concerns over Google’s new TurboQuant algorithm, as an overreaction by the market. Bernstein argued that the impact of TurboQuant has been overstated.
The research firm’s analysis indicates that hard disk drive demand is expected to remain largely unchanged and any effects on NAND flash memory demand should be minimal.
Sandisk Corporation (NASDAQ:SNDK) is an American computer technology company that designs and manufactures flash solutions and advanced memory technologies, including SSDs, memory cards, and USB Flash Drives.
While we acknowledge the potential of SNDK 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 SNDK and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
