In this article, we will list the 5 Best Up and Coming Stocks to Buy for the Next 3 Years. Please visit 10 Best Up and Coming Stocks to Buy for the Next 3 Years to see the extended list and the methodology behind it.
5. Figure Technology Solutions Inc. (NASDAQ:FIGR)
Number of Hedge Fund Holders: 51
Figure Technology Solutions Inc. (NASDAQ:FIGR) is one of the best up and coming stocks to buy for the next 3 years. On June 10, Figure Technology entered a definitive agreement to acquire Kiavi, an AI-powered platform for residential real estate investors, in a transaction valued at $717 million. As part of the deal, a JV between Figure and Sixth Street will acquire Kiavi’s balance sheet assets. The acquisition is set to significantly scale Figure’s tokenized asset marketplace by adding $7 billion in annual first-lien loan volume and over $100 million in monthly flow to its Democratized Prime platform.
The integration is expected to advance Figure’s mission of modernizing capital markets through blockchain, while supporting its presence in the residential transition and rental property loan sectors. By using Figure’s blockchain infrastructure and AI-driven Adaptor product for agent-to-agent onboarding, the company aims to reduce costs, improve efficiency, and maintain its medium-term 60% EBITDA margin target. Kiavi CEO Arvind Mohan will join Figure’s executive team as Chief Business Officer following the close of the deal.
This acquisition positions Figure Technology Solutions Inc. (NASDAQ:FIGR) to capture a larger share of the residential real estate market, which represents a $200 billion annual origination opportunity. By moving these assets onto blockchain rails, Figure expects to drive earnings accretion and achieve an unlevered cash payback in under four years, further solidifying its role as a leader in real-world asset tokenization.
Figure Technology Solutions Inc. (NASDAQ:FIGR) is a US fintech company operating a blockchain‑native capital marketplace for loan origination, funding, and trading of tokenized assets, including consumer credit and digital asset products.
4. SOLV Energy (NASDAQ:MWH)
Number of Hedge Fund Holders: 51
SOLV Energy (NASDAQ:MWH) is one of the best up and coming stocks to buy for the next 3 years. On May 28, SOLV Energy priced an upsized public offering of 15,000,000 shares of its Class A common stock at $36.00 per share. The offering includes 7,301,590 shares sold by the company and 7,698,410 shares sold by affiliates of American Securities LLC. Additionally, underwriters have been granted a 30-day option to purchase up to 2,250,000 supplementary shares.
The company plans to use the net proceeds from its portion of the sale to purchase limited liability company interests in SOLV Energy Holdings LLC from existing holders, including certain directors and executives. SOLV Energy (NASDAQ:MWH) will not receive any proceeds from the shares sold by the selling stockholders.
The offering is managed by a group of financial institutions led by Jefferies and J.P. Morgan. The securities are being offered via a prospectus filed with the SEC, and further information is available through the commission’s EDGAR database or the managing underwriters.
SOLV Energy (NASDAQ:MWH) provides power infrastructure services, offering engineering, procurement, construction, operations, maintenance, repowering, and grid-related solutions for utility-scale energy projects.
3. Astera Labs Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 53
Astera Labs Inc. (NASDAQ:ALAB) is one of the best up and coming stocks to buy for the next 3 years. On May 5, Astera Labs reported record financial results for Q1 2026, with revenue reaching $308.4 million. This represents a 14% increase sequentially and a 93% growth year-over-year, largely fueled by robust demand for the company’s PCIe 6 portfolio. The company also announced the initial shipment of its Scorpio X-Series 320-lane AI scale-up fabric switch, which is designed to support frontier AI lab workloads.
The company’s growth is supported by an expanding Intelligent Connectivity Platform, which integrates various semiconductor technologies like CXL, Ethernet, and NVLink Fusion. Astera Labs continues to collaborate on industry-standard advancements, recently contributing to the UALink 2.0 specification to improve efficiency, security, and resiliency for AI compute fabrics. For Q2 2026, Astera Labs provides revenue guidance in the range of $355 million to $365 million.
Financially, the company reported a GAAP net income of $80.3 million, or $0.44 per diluted share, while non-GAAP net income stood at $110.1 million, or $0.61 per diluted share. Despite ongoing investments in R&D and infrastructure, Astera Labs Inc. (NASDAQ:ALAB) maintains a strong balance sheet with $1.04 billion in marketable securities as of the end of Q1.
Astera Labs Inc. (NASDAQ:ALAB) is a global semiconductor company that provides hardware and software solutions for AI and cloud infrastructure applications to solve memory, data, and networking bottlenecks. The company’s operations are divided into the following geographical segments: Taiwan, China, the United States, and Other.
2. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Number of Hedge Fund Holders: 59
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best up and coming stocks to buy for the next 3 years. On June 1, Credo Technology Group reported strong FQ4 and full-year fiscal 2026 results, with annual revenue more than tripling to $1.3 billion. FQ4 revenue reached $437.0 million, a 157.0% increase year-over-year, while non-GAAP net income for the fiscal year grew more than fivefold to $662 million. The company concluded the fiscal year with a solid balance sheet, holding $1.4 billion in cash and short-term investments.
CEO Bill Brennan credited this performance to the company’s vertically integrated approach, which helps data center customers improve network reliability, maximize GPU utilization, and lower infrastructure power costs. Credo remains focused on maintaining this momentum as it enters fiscal 2027, continuing to provide connectivity solutions that accelerate cluster performance.
Looking ahead to FQ1 2027, the company expects revenue to fall between $465.0 million and $475.0 million. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) projects non-GAAP gross margins to remain steady in the 67.0% to 69.0% range, while non-GAAP operating expenses are anticipated to be between $86.0 million and $90.0 million.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in George Town, Cayman Islands and was founded on 2008 by Chi Fung Cheng and Yat Tung Lam.
1. ABIVAX Société Anonyme (NASDAQ:ABVX)
Number of Hedge Fund Holders: 69
ABIVAX Société Anonyme (NASDAQ:ABVX) is one of the best up and coming stocks to buy for the next 3 years. On June 1, Abivax announced positive topline results from its Phase 3 ABTECT maintenance trial for obefazimod, an oral, first-in-class miR-124 enhancer being developed for moderately to severely active ulcerative colitis. At Week 44, both the 25 mg and 50 mg daily doses met the primary endpoint of clinical remission, with placebo-adjusted rates of 39.3% and 40.3%, respectively. Furthermore, both doses successfully met all key secondary endpoints, including endoscopic improvement and remission, demonstrating robust and durable disease control.
The trial, which involved 580 participants who were responders to prior induction therapy, showed a favorable safety profile with no new safety signals observed over the 44 weeks. These findings, combined with evidence of long-term durability from open-label extension data, support the company’s plans to submit an NDA to the US FDA for obefazimod in late Q4 2026.
This milestone reinforces the potential for obefazimod to serve as a convenient, once-daily oral treatment option that could transform the standard of care for ulcerative colitis. Looking ahead, ABIVAX Société Anonyme (NASDAQ:ABVX) continues its clinical development program, with topline results from a Phase 2b induction trial for Crohn’s disease expected in mid-2027.
ABIVAX Société Anonyme (NASDAQ:ABVX) is a clinical-stage biotech company that develops therapies to stabilize immune responses in chronic inflammatory diseases. Its lead candidate, obefazimod, is currently in advanced clinical trials for the treatment of ulcerative colitis and Crohn’s disease.
While we acknowledge the potential of ABVX 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 ABVX and that has 100x upside potential, check out our report about the cheapest AI stock.
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