In this article, we will take a look at the 5 Best Stocks to Buy for the Second Half of 2026. For a deeper discussion and an extended list, please see the 15 Best Stocks to Buy for the Second Half of 2026.
5. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 114
Year-to-date return: 638.34%
Sandisk Corporation (NASDAQ:SNDK) is one of the Best Stocks To Buy.
On July 2, Sandisk Corporation (NASDAQ:SNDK) announced it has begun sampling its BiCS10 1Tb TLC 10th-generation 3D NAND flash memory. It introduced what the company called an industry-leading density of more than 29Gb/mm². The firm said the technology improves bit density by 59%. It also delivers interface speeds of up to 4.8Gb/s, a 33% increase over BiCS8, and reduces input and output power consumption by 10% and 34%, respectively.
Chief Technology Officer Alper Ilkbahar said, “NAND plays an increasingly mission-critical role” as computing becomes more data-intensive. He commented that BiCS10 TLC builds on BiCS8 with “faster interface speeds, higher bit density, and improved power efficiency.”
Sandisk Corporation (NASDAQ:SNDK) said BiCS10 increases memory layers to 332 and said Toggle DDR6.0, SCA protocol, and PI-LTT technology support high-speed, low-power operation. The corporation said the sampling milestone advances its NAND roadmap for artificial intelligence-focused and other data-intensive workloads.
Sandisk Corporation (NASDAQ:SNDK) is a firm that develops, manufactures, and provides storage devices and solutions based on NAND flash technology. Its products consist of solid-state drives, memory cards, and USB flash drives.
4. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 123
Year-to-date return: 107.50%
On June 9, in a new episode of “The Rundown,” Lumentum Holdings Inc. (NASDAQ:LITE) CEO Michael Hurlston said the company has benefited from the rapid shift from copper to fiber optics inside AI data centers. He explained that higher bandwidth demands have pushed connectivity speeds from 400 Gbps to 800 Gbps and now 1.6 Tbps.
Hurlston called Lumentum Holdings Inc. (NASDAQ:LITE)’s laser technology “arguably second to none.” He also said it’s decades of experience have positioned the California-based technology firm for the AI infrastructure buildout.
Hurlston said demand is not the constraint, but “supply is.” He pointed out that new fabrication facilities take about two years to reach production, prompting capacity planning through 2028-2030. He also said Nvidia’s multiyear purchase commitment reflected concerns over indium phosphide laser supply as the industry shifts to fiber.
Looking ahead, Hurlston said he sees “no end in sight” over the next five years. He underlined co-packaged optics and growing fiber use as important long-term growth drivers.
Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It works in the Cloud and Networking, and Industrial Tech segments.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 134
Year-to-date return: 142.04%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Stocks To Buy.
On July 1, Schwab Network’s Fast Market featured Kevin Hincks and Tom White discussing Advanced Micro Devices, Inc. (NASDAQ:AMD) after Wells Fargo raised its price target to $615 from $505. The firm noted sustained demand for EPYC server processors, pricing power, and a stronger outlook for the company’s AI data center business. Wells Fargo also lifted its long-term earnings estimates.
Kevin Hincks called Advanced Micro Devices, Inc. (NASDAQ:AMD)’s resurgence a compelling story and credited CEO Lisa Su with the company’s growing CPU strength. He also appreciated the use by customers seeking to diversify AI infrastructure beyond Nvidia.
Tom White agreed the corporation has gained CPU market share from Intel but argued Nvidia still dominates GPUs and is expanding into CPUs. He warned that AMD’s valuation has become increasingly demanding despite its strong momentum. The analysts also outlined contrasting option strategies. Hincks favored a bearish put calendar, and White recommended a neutral to bullish unbalanced put butterfly.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company working in high-performance computing and graphics solutions. Its portfolio includes microprocessors, graphics processors, and system-on-chip solutions designed for data centers, gaming, and embedded systems.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
Year-to-date return: 142.09%
On June 30, Susquehanna analyst Mehdi Hosseini bumped up his target on Applied Materials, Inc. (NASDAQ:AMAT) to $900 from $575. The analyst maintained a “Positive” rating on the shares. In an investor note, he noted channel checks that suggested an expanding SCE backlog extending beyond one year. WFE is reaching as high as $300 billion and higher in 2026 and 2027 estimates, along with new 2028 projections.
Separately, on June 16, Reuters reported that Applied Materials, Inc. (NASDAQ:AMAT) signed a long-term agreement with EssilorLuxottica to develop augmented reality display technology and AI glasses.
Reuters said the companies plan to scale commercialization as well as focus research on advanced optical technologies.
Reuters also reported that EssilorLuxottica already sells artificial intelligence glasses with Meta under the Ray-Ban and Oakley brands. Applied Materials, Inc. (NASDAQ:AMAT) supplies the semiconductor manufacturing equipment needed to produce the ultra-thin chip layers used in AR displays.
Applied Materials, Inc. (NASDAQ:AMAT) is a firm that provides materials engineering solutions used in semiconductor manufacturing. Its segments include Semiconductor Systems and Applied Global Services.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Year-to-date return: 227.27%
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Stocks To Buy.
On June 30, CNBC reported that Micron Technology, Inc. (NASDAQ:MU) CEO Sanjay Mehrotra said aggressive customer pricing pressure helped create today’s memory shortage by leaving the industry underinvested before AI demand increased.
Mehrotra said, “Certain customers drove pricing significantly down in our industry.” He noted memory prices fell to one-third of prior levels in 2023. He also commented, “Companies were losing money. They couldn’t afford it,” arguing the downturn limited manufacturers’ ability to expand capacity.
Mehrotra said Micron Technology, Inc. (NASDAQ:MU) keeps on investing despite cutting fiscal 2023 capital spending to $7.7 billion from $12.1 billion a year earlier. He expects a tight memory supply to carry on beyond 2027 because new semiconductor fabs require years to build, and advanced memory has become more complex to produce.
To address demand, Mehrotra said the semiconductor firm plans to invest about $200 billion in manufacturing and research, with its Boise facility expected to produce its first chips by mid-2027.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. It operates in the Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit segments.
While we acknowledge the potential of MU 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 MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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