In this piece we will look at the 5 Best Stocks to Buy Now for High Returns. Please visit 10 Best Stocks to Buy Now for High Returns if you’d like to see an extended list and how we came up with the list of Best Stocks to Buy Now for High Returns.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
EPS Growth Next Year: 78.29%
Number of Hedge Fund Holders: 134
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Stocks to Buy Now for High Returns. Recently, on July 9, William Blair initiated Advanced Micro Devices, Inc. (NASDAQ:AMD) with a Market Perform rating without any price targets.
Stocks
The firm noted AMD to be among the major beneficiaries of the AI infrastructure boom as it sees more advanced models and growing inference and agentic use cases. Blair expects the company’s sales to grow from $52 billion in 2026 to over $104 billion in 2028 and non-GAAP EPS to reach $20 by 2028.
Despite this optimistic outlook, the firm called the company’s GPU business an uphill battle against Nvidia. The firm noted that while AMD is accelerating its product roadmap, competition from other hyperscalers is limiting meaningful gains for the shares.
The firm noted that at 33 times 2027 earnings, the valuation of AMD properly balances strong AI demand against competitive and spending risks.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
4. Applied Materials, Inc. (NASDAQ:AMAT)
EPS Growth Next Year: 36.40%
Number of Hedge Fund Holders: 138
Applied Materials, Inc. (NASDAQ:AMAT) has gained more than 18% over the past month, mainly due to strong demand commentary. Analysts project the company to grow its EPS by more than 36% over the next year. Applied Materials, Inc. (NASDAQ:AMAT) is also among our Best Stocks to Buy Now for High Returns.
Recently, on July 9, Mizuho raised the firm’s price target from $540 to $650 and maintained an Outperform rating on the shares. The firm noted that the wafer fab equipment earnings estimates are supported by strong demand driven by AI. The firm also expects advancements in edge logic and memory chips, which will act as a tailwind.
Mizuho noted improving price targets across the semiconductor equipment companies as it sees AI driving demand for DRAM and NAND.
Similarly, on the same day, TD Cowen also raised the price target on AMAT from $525 to $700, while maintaining a Buy rating on the shares. The firm expects wafer fab equipment spending to reach $250 billion in 2028, with the potential to climb to $400 billion by 2030, based on industry EBITDA trends. TD Cowen also highlighted the memory sector, noting fab return on investment now stands at more than three times better than prior cycles.
Applied Materials Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.
3. Micron Technology, Inc. (NASDAQ:MU)
EPS Growth Next Year: 109.26%
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Stocks to Buy Now for High Returns. On July 9, Micron Technology, Inc. (NASDAQ:MU) said that it will boost US investment to more than $250 billion by 2035 as the demand for AI memory chips continues to surge. Moreover, the company is also allocating $3 billion separately to strengthen the domestic semiconductor supply chain.
This news relates to the US government’s push to localize semiconductor manufacturing. Management noted that the investment is aimed at expanding the company’s domestic memory capacity, while also cutting reliance on overseas suppliers.
Moreover, Micron also highlighted that the spending supports its long-term goal of producing 40% of its DRAM chips domestically. The company also marked the first concrete pour at its Clay, New York, fab, over a quarter ahead of schedule. It’s expected to become the largest semiconductor manufacturing site in US history.
Moreover, the $3 billion that the company plans to invest to improve the supply chain includes $500 million in financing for GlobalWafers to expand its Sherman, Texas, wafer facility, backed by a 10-year supply agreement.
Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.
2. Broadcom Inc. (NASDAQ:AVGO)
EPS Growth Next Year: 67.91%
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Buy Now for High Returns. Broadcom Inc. (NASDAQ:AVGO) maintains its upward trajectory with more than 7.8% gains over the past month. Recent gains have been driven by a multi-year partnership extension with Apple and surging AI semiconductor demand. Wall Street anticipates more than 30% upside over the next 12-months, driven by accelerating custom ASIC revenue.
Recently, on July 8, Reuters reported that Apple plans to spend more than $30 billion under a multi-year chip supply deal with Broadcom. This move comes as the Trump administration pushes for expanded domestic chip manufacturing. The report noted that the deal, which was finalized earlier this week, will run through 2031. It covers FBAR filters, which are radio-frequency chips used for wireless connectivity in Apple devices. Apple and Broadcom have been developing these chips together since 2023.
Moreover, as part of the deal, the company will also invest $1.5 billion to expand its Fort Collins, Colorado, factory. Reuters noted that Apple said the expansion will produce at least 15 billion chips and support its broader effort to source more components domestically. In addition, CEO Tim Cook said that the Fort Collins components are essential to the performance and connectivity customers expect.
Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
1. NVIDIA Corporation (NASDAQ:NVDA)
EPS Growth Next Year: 40.71%
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Buy Now for High Returns. The stock remained mostly flat over the past month, with only a 1.18% gain. However, the Street remains bullish on the stock with analysts expecting more than 47% upside over the next 12-months.
Recently, on July 8, TD Cowen analyst Joshua Buchalter reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $275 price target. The analyst noted that Nvidia has an unprecedented competitive edge as AI moves beyond chatbots into industries like healthcare and robotics. He added that this edge comes from the company’s integrated hardware and software platform, which has the potential to work seamlessly together.
The analyst added that he gained confidence from the company’s investor lunch with TD Cowen. The discussions with the management reinforced his view that AI spending remains durable across a range of applications and customers. The firm remains confident in the long-term potential of Nvidia as AI adoption broadens.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
