In this article, we will list the 5 Fastest Growing S&P 500 Stocks to Buy Now. Please visit 10 Fastest Growing S&P 500 Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Lumentum Holdings Inc. (NASDAQ:LITE)
On May 11, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) announced that it will be added to the Nasdaq-100 Index, with inclusion set to take effect before the market opens on May 18, 2026. The company described the addition as a significant milestone following its progress over the past year.
On May 6, 2026, Raymond James analyst Simon Leopold raised the firm’s price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $1,014 from $491 while maintaining an Outperform rating on the shares. The firm said Lumentum delivered a modest beat-and-raise quarter supported by improving operational execution and emerging growth drivers, including co-packaged optics, optical circuit switching, and scale-up infrastructure. Raymond James added that these trends support expectations for continued triple-digit growth and margin expansion despite a relatively muted market reaction following earnings.
Rosenblatt analyst Mike Genovese also raised the firm’s price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $1,300 from $900 while maintaining a Buy rating on the shares. The firm said Lumentum appears on track to achieve or exceed its target of reaching $1.25B in quarterly revenue by the end of calendar 2026 and $2B in quarterly revenue by the end of 2027, while margins are progressing ahead of internal targets.
Lumentum Holdings Inc. (NASDAQ:LITE) manufactures and sells optical and photonic products across the Americas, Asia-Pacific, Europe, the Middle East, and Africa.
4. Lam Research Corporation (NASDAQ:LRCX)
On May 12, 2026, B. Riley raised the firm’s price target on Lam Research Corporation (NASDAQ:LRCX) to $385 from $350 while maintaining a Buy rating on the shares. The firm said AI-related investment continues accelerating faster than expected, with growing demand from hyperscalers and neo-cloud providers driving significantly higher capital expenditure expectations for 2026 through 2028. B. Riley added that evolving AI workloads and increasing chip intensity from major model providers are tightening semiconductor supply-demand dynamics and supporting stronger earnings revisions across the sector.
On May 4, 2026, Seaport Research analyst Jay Goldberg initiated coverage of Lam Research Corporation (NASDAQ:LRCX) with a Buy rating and $300 price target as part of a broader launch covering the wafer fabrication equipment industry. The firm said the sector is benefiting from one of the strongest cycles in its history, driven by secular demand for compute infrastructure tied to AI and the growing technological complexity involved in manufacturing advanced semiconductors. Seaport added that Lam Research is particularly well-positioned to benefit from strength in the memory segment.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in integrated circuit fabrication globally.
3. Seagate Technology Holdings plc (NASDAQ:STX)
On May 12, 2026, Evercore ISI raised the firm’s price target on Seagate Technology Holdings plc (NASDAQ:STX) to $1,000 from $750 while maintaining an Outperform rating on the shares. The firm said Seagate’s long-term growth outlook remains favorable, supported by disciplined supply management, continued technology advancements, and a strong demand environment.
On May 6, 2026, Seagate Technology Holdings plc (NASDAQ:STX) announced that Mike Cannon, the company’s Lead Independent Director, plans to retire from the Board of Directors at the end of his current term in October 2026. Cannon has served on Seagate’s board since 2011, including prior roles as Board Chair and Lead Independent Director. Cannon said he was proud of Seagate’s longstanding focus on technology innovation and operational execution to address growing global data storage needs, adding that he believes the company is well-positioned to expand its role in the data storage market over the coming decade.
Seagate Technology Holdings plc (NASDAQ:STX) provides data storage technology and infrastructure solutions globally.
2. TKO Group Holdings, Inc. (NYSE:TKO)
On May 12, 2026, TKO Group Holdings, Inc. (NYSE:TKO), together with the Arizona Sports & Events Alliance, announced a multi-year partnership to bring a series of UFC, WWE, PBR, and Zuffa Boxing events to Arizona. The seven-event agreement will run over three years and feature several of TKO’s marquee live events across its combat sports and entertainment portfolio. Peter Dropick, Executive Vice President of Event Development and Operations for TKO, said the partnership is expected to create new opportunities for fans across the region to experience some of the company’s largest events over the coming years.
On May 6, 2026, TKO Group Holdings, Inc. (NYSE:TKO) reported Q1 EPS of $1.12, versus the consensus estimate of $1.14. Revenue totaled $1.60B, compared to the consensus estimate of $1.59B. Executive Chair and CEO Ariel Emanuel said TKO delivered a strong start to 2026, supported by continued momentum across its businesses, while reaffirming full-year guidance. Emanuel also pointed to the company’s additional $1B share repurchase authorization as a reflection of confidence in TKO’s long-term value. President and COO Mark Shapiro said the quarter highlighted the strength of TKO’s premium intellectual property portfolio, supported by stable media rights agreements, growing financial incentive packages, and healthy demand for premium live events and experiences.
TKO reaffirmed its FY26 revenue guidance of $5.675B-$5.775B, compared to the consensus estimate of $5.78B. The company also reaffirmed FY26 adjusted EBITDA guidance of $2.24B-$2.29B, versus $1.59B reported in FY25.
TKO Group Holdings, Inc. (NYSE:TKO) operates as a sports and entertainment company through its UFC, WWE, and IMG segments.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
On May 13, 2026, BofA raised the firm’s price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $500 from $450 while maintaining a Buy rating on the shares. The firm updated its 2030 AI data center systems total addressable market estimate to about $1.7T from $1.4T previously, saying 2026 should remain a year of accelerating AI-related sales and returns on investment, while 2027 could benefit from improving token economics and efficiency as next-generation compute and memory architectures scale.
Meanwhile, Daiwa downgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) to Outperform from Buy with a price target of $500, up from $250. The firm cited valuation following the stock’s roughly 150% gain over the past 60 days. Daiwa described AMD’s Q1 results and Q2 outlook as very strong but said the pace of share appreciation could moderate in the near term after the recent rally.
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company serving global markets through its Data Center, Client and Gaming, and Embedded segments.
While we acknowledge the potential of AMD 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 AMD and that has 100x upside potential, check out our report about the cheapest AI stock.
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