In this piece, we shed light on the 7 Best Rising Tech Stocks to Buy Now.
Amid a technology stocks rally that continues to extend, investors cannot help but ask whether the sector can keep surging after such a strong run. In his Reuters interview on December 23, 2025, CFRA Research chief investment strategist Sam Stovall addressed the debate through the lens of market history. He noted that leadership often persists.
The analyst highlighted a historical trend in which the three best-performing sectors tend to continue outperforming after a strong year, surpassing the broader market roughly 70% of the time since 1990. That pattern reflects the long-standing market adage of “to let winners ride” after a powerful year, Stovall noted.
The analyst believes technology has become a leader, particularly when viewed from an earnings perspective. He noted the sector’s 24% earnings growth in 2025, which he expects to accelerate further. He expects growth to be roughly 30% in 2026 and 20% in 2027. These years represent significant outperformance of the sector compared to the overall market.
Furthermore, Stovall also addressed valuation concerns, saying they have eased. These concerns erupted after the market’s late-October peak, when the S&P 500 technology sector was trading at a steep premium to its long-term average. However, this premium had narrowed significantly by December 23. Moreover, valuations appeared only slightly elevated compared to the overall market when the more recent five-year period shaped by artificial intelligence was considered.
With this backdrop, we will jump to our list of the 7 best rising tech stocks to buy now.
Photo by Andrea De Santis on Unsplash
Our Methodology
To curate our list of the best rising tech stocks to buy now, we started by screening technology companies with one-month returns of over 5%, indicating strong recent momentum. Next, we narrowed the list by selecting stocks whose 50-day simple moving average (SMA) has crossed above the 200-day SMA, signaling a positive technical trend.
From these shortlisted stocks, we focused on those trading at a forward price-to-earnings (P/E) between 10 and 30. With this, we ensured that valuations remain reasonable despite recent price appreciation. Next, we incorporated analyst sentiment, ensuring significant analyst coverage for stocks with at least 10% upside potential.
Finally, we ranked these stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q3 2025. We assessed hedge fund sentiment surrounding these stocks using Insider Monkey’s hedge fund database, which tracks 978 stocks as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All the data is as of market close on December 19, 2025.
7. PDF Solutions, Inc. (NASDAQ:PDFS)
Forward P/E: 29.02
One-Month Gain: 14.22%
Upside Potential: 25.20%
Number of Hedge Fund Holders: 20
PDF Solutions, Inc. (NASDAQ:PDFS) is one of the best rising tech stocks to buy now.
As of December 19, 2025, all analysts covering PDF Solutions, Inc. (NASDAQ:PDFS) are bullish, with a consensus 1-year median price target of $35.00. This translates into a healthy upside potential of 18.10%.
On December 10, 2025, PDF Solutions, Inc. (NASDAQ:PDFS) reached its 52-week high of $31.84, showcasing its positive momentum marked by six-month returns of 40.45% and one-month returns of 14.22%. However, the stock declined during the next couple of days, closing at $27.95 on December 19.
Meanwhile, on December 5, 2025, TheFly reported that DA Davidson raised its price target on PDF Solutions, Inc. (NASDAQ:PDFS) from $34 to $36, while maintaining a “Buy” rating. The firm’s update came after the company’s User Conference and first analyst day since 2023. In these interactions, the company’s management expressed confidence in its future growth, revising its long-term financial targets, updating its outlook on growth drivers, and expanding the addressable market. Management expects the addressable market to double by 2030, the analysts highlighted in their research note.
Furthermore, PDF Solutions, Inc. (NASDAQ:PDFS)’s management projects revenue growth of 20% year-over-year, alongside a 700-basis point expansion in non-GAAP operating margin over the coming year. DA Davidson’s valuation of the stock is based on 23 times its updated 2026 EBITDA estimate.
PDF Solutions, Inc. (NASDAQ:PDFS) focuses on providing an end-to-end analytics platform, empowering engineers and data scientists across the semiconductor ecosystem. It also provides data analytics for electronics segments.
6. Synaptics Incorporated (NASDAQ:SYNA)
Forward P/E: 16.57
One-Month Gain: 22.94%
Upside Potential: 14.70%
Number of Hedge Fund Holders: 27
Synaptics Incorporated (NASDAQ:SYNA) is included in our list of the best rising tech stocks to buy now.
On December 19, 2025, TheFly reported that Wells Fargo initiated coverage of Synaptics Incorporated (NASDAQ:SYNA) with an “Overweight” rating and a $95 price target. The firm believes the stock offers an attractive risk/reward profile into 2026. Furthermore, the analyst cited the company’s acceleration of its transition to an Internet of Things (IoT) chip supplier. Meanwhile, the company’s Astra pipeline updates are seen as potentially positive catalysts by the analyst. The firm notes that the company will experience a valuation re-rating over time.
The company’s increasing focus on the Internet of Things is reflected by its October launch of the Astra SL2600 Series of multimodal Edge AI processors. These processors are purpose-built for a diverse range of intelligent IoT applications. Meanwhile, the SL2610 product line focuses on high-growth end markets, including smart appliances, industrial and factory automation, healthcare devices, retail point-of-sale systems, robotics, and autonomous platforms. With these launches, Synaptics Incorporated (NASDAQ:SYNA) deliberately shifts away from legacy interface-centric silicon toward embedded edge compute and connectivity.
At the same time, Synaptics Incorporated (NASDAQ:SYNA) announced a collaboration with Qualcomm Technologies in November, highlighting its evolution from a traditional human-interface supplier to intelligence- and AI-enabled edge solutions. While the collaboration is rooted in touch and fingerprint sensing for mobile, wearables, and AI PCs, it emphasizes tighter integration of sensing, compute, and security. These features reflect key building blocks for edge intelligence.
Looking ahead, Synaptics Incorporated (NASDAQ:SYNA) appears well-positioned to further its transition into embedded edge and IoT markets, thanks to strong product momentum and strategic partnerships.
Synaptics Incorporated (NASDAQ:SYNA), a developer and fabless supplier of mixed-signal semiconductor solutions, enables intelligent interactions with connected devices across consumer, automotive, and enterprise environments.
5. Pegasystems Inc. (NASDAQ:PEGA)
Forward P/E: 29.71
One-Month Gain: 13.24%
Upside Potential: 21.80%
Number of Hedge Fund Holders: 28
Pegasystems Inc. (NASDAQ:PEGA) is one of the best rising tech stocks to buy now.
On December 16, 2025, Pegasystems Inc. (NASDAQ:PEGA) came under investor spotlight after it announced advanced agentic AI enhancements to its Pega Client Lifecycle Management (CLM) platform. The update brings deeper automation across client onboarding, Know Your Customer (KYC), screening, and risk assessment. It targets one of the most resource-intensive functions for banks amid intensifying regulatory demand.
The latest Pega CLM release embeds predictable, governed AI agents across the workflow, shortening onboarding cycles, improving accuracy, and reducing operational costs at scale. The update comes as the compliance market expects sustained spending growth over the coming years. Furthermore, Pegasystems Inc. (NASDAQ:PEGA)’s product launch aligns with its broader push to modernize legacy compliance processes using cloud-native, AI-driven architectures. The introduction also reinforces the company’s relevance amid financial institutions’ efforts to achieve faster, more agile regulatory operations.
Meanwhile, Pegasystems Inc. (NASDAQ:PEGA) complemented its operational update with a dividend announcement, declaring a $0.03 quarterly cash dividend on December 15. With this, the company reinforces its commitment to providing capital returns to its shareholders.
Earlier this month, JPMorgan reiterated its “Overweight” rating on Pegasystems Inc. (NASDAQ:PEGA), raising its price target to $74. The firm’s confidence in the stock remains strong amid accelerating enterprise migration from legacy systems to cloud-based platforms. The firm views the company as a beneficiary of this multi-year modernization cycle. The company is seeing improved monetization potential as adoption of its AI-enabled orchestration software expands.
Pegasystems Inc. (NASDAQ:PEGA), headquartered in Waltham, Massachusetts, develops software for customer engagement and intelligent automation. The company integrates decisioning, case management, and workflow to help large enterprises streamline operations and reduce complexity.
4. Harmonic Inc. (NASDAQ:HLIT)
Forward P/E: 17.27
One-Month Gain: 7.39%
Upside Potential: 21.50%
Number of Hedge Fund Holders: 29
Harmonic Inc. (NASDAQ:HLIT) is included in our list of the best rising tech stocks to buy now.
As of December 22, 2025, Harmonic Inc. (NASDAQ:HLIT) remains a “Buy” according to 60% of analysts covering the stock. The consensus of these analysts yields a 1-year median price target of $12.00, representing 21.50% upside.
On December 8, 2025, Harmonic Inc. (NASDAQ:HLIT) announced a binding offer it received from MediaKind for the acquisition of its Video Business segment. The offer, valued at approximately $145 million in cash, marks a significant step in the company’s strategic repositioning. The transaction remains subject to a French employee works council consultation process, regulatory approvals, and customary closing conditions. It is expected to close in the first half of 2026.
With this proposed divestiture, Harmonic Inc. (NASDAQ:HLIT) aims to recalibrate its focus on its core virtualized broadband business, which management views as the company’s long-term growth driver. The transaction will also strengthen the company’s balance sheet and provide additional financial flexibility to support customer expansion, product investment, and shareholder value creation.
Harmonic Inc. (NASDAQ:HLIT) CEO Nimrod Ben-Natan believes the divestiture would allow the company to concentrate its efforts on its broadband priorities while placing the Video Business within an organization dedicated to advancing video delivery technologies.
Following this announcement, Harmonic Inc. (NASDAQ:HLIT) drew analyst attention on December 9, with Needham reiterating its “Buy” rating with a $15.00 price target.
With its Broadband segment, Harmonic Inc. (NASDAQ:HLIT) delivers software-based access solutions to cable operators worldwide.
3. Entegris, Inc. (NASDAQ:ENTG)
Forward P/E: 28.75
One-Month Gain: 13.95%
Upside Potential: 19.60%
Number of Hedge Fund Holders: 38
Entegris, Inc. (NASDAQ:ENTG) is included in our list of the best rising tech stocks to buy now.
On December 15, TheFly reported that Goldman Sachs downgraded Entegris, Inc. (NASDAQ:ENTG) from “Neutral” to “Sell,” reducing the price target from $88 to $75. The firm revisited the stock while revising its 2026 outlook for semiconductor stocks. It expects hyperscaler artificial intelligence spending to surge in 2026. The firm believes this surge will drive digital, memory, and storage stocks upward.
Furthermore, Goldman Sachs sees cyclical tailwinds for analog from a gradual industrial and automotive recovery. Despite a positive outlook for the sector, the firm does not see Entegris as a beneficiary, describing the company as poorly positioned to capture upside given limited margin improvement.
However, Entegris, Inc. (NASDAQ:ENTG)’s management appears to be confident in its future growth. The management expects increasing device complexity to drive demand for the company’s materials science and purity solutions. In the third-quarter earnings recap, the company’s CEO highlighted strong momentum in products supporting advanced semiconductor nodes, including liquid filtration and purification, deposition materials, and CMP consumables.
For the fourth quarter, Entegris, Inc. (NASDAQ:ENTG) expects $790-830 million in revenue and non-GAAP EPS of $0.62 to $0.69. Meanwhile, management projects adjusted EBITDA margins of 26.5% to 27.5%.
Entegris, Inc. (NASDAQ:ENTG) is focused on the development, manufacture, and supply of specialty materials for the microelectronics industry.
2. NXP Semiconductors N.V. (NASDAQ:NXPI)
Forward P/E: 17.31
One-Month Gain: 19.05%
Upside Potential: 17.10%
Number of Hedge Fund Holders: 53
NXP Semiconductors N.V. (NASDAQ:NXPI) is included in our list of the best rising tech stocks to buy now.
As of December 23, 2025, 90% of analysts remain bullish, setting a median price target of $265.00. The price target translates to an upside potential of 15.75%.
On December 21, 2025, Morgan Stanley published a research note on AI semiconductor stocks. As demand for computing continues to grow, the AI chip sector remains in the spotlight, the firm noted. Within this context, Morgan Stanley touched upon the analog chips sector, saying the outlook is slowly improving. In this sector, the firm expressed a preference for NXP Semiconductors N.V. (NASDAQ:NXPI), which offers a strong balance of growth and value, TheFly reported.
On December 19, 2025, Truist revisited the semiconductor and artificial intelligence group, adjusting its price targets after incorporating 2027 estimates. In its review, the firm discussed the challenges of sourcing the power required to operate AI infrastructure and securing financing for it. Despite these challenges, Truist describes AI infrastructure semiconductor stocks as cheap relative to their growth. Regarding diversified analog semiconductor stocks, the firm expects the group to see more upward revisions heading into 2026, with the AI capital expenditure surge continuing.
Within this recap, Truist also discussed NXP Semiconductors N.V. (NASDAQ:NXPI), raising its price target on the stock from $254 to $265, while reiterating a “Buy” rating.
NXP Semiconductors N.V. (NASDAQ:NXPI), a holding company, delivers semiconductor solutions, operating across China, Netherlands, United States, Singapore, Germany, Japan, South Korea, Malaysia, and Other Countries.
1. Baidu, Inc. (NASDAQ:BIDU)
Forward P/E: 18.61
One-Month Gain: 5.70%
Upside Potential: 23.60%
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is one of the best rising tech stocks to buy now.
A significant escalation in the global race toward autonomous mobility occurred on December 22, 2025, when Uber and Lyft announced partnerships with Baidu, Inc. (NASDAQ:BIDU) to launch driverless taxi trials in the UK in 2026. This partnership will see Baidu’s Apollo Go RT6 robotaxis enter London’s ride-hailing networks in 2026. With these rapid developments, the stage will be set for the first head-to-head competition between U.S. and Chinese autonomous driving leaders in a major European capital. This update comes shortly after Alphabet’s Waymo began supervised testing in the city.
The UK’s appeal as a testing ground has grown recently, with the Automated Vehicles Act 2024 clarifying liability by shifting responsibility from passengers to authorized self-driving operators. The region now offers regulatory certainty largely absent across the European Union.
Meanwhile, Baidu, Inc. (NASDAQ:BIDU)’s broader autonomous strategy has drawn investor attention, with Citi placing the stock on a 90-day positive catalyst watch on December 8, 2025. The investment bank cited improving disclosure around AI-driven revenues and Ernie model investments as potential value unlocks. Citi reiterated its “Buy” rating on the stock with an $181 price target, citing growing confidence in the company’s outlook after meeting with management.
On December 7, 2025, Baidu, Inc. (NASDAQ:BIDU) was one of ARK’s biggest additions, with the investment firm acquiring 119,982 Baidu shares worth $14.24 million. This follows the firm’s cautious stance on Chinese stocks for most of 2025.
Baidu, Inc. (NASDAQ:BIDU) provides internet search and online marketing solutions. It is known for the Baidu App, Baidu Search, Baidu Feed, Haokan, Quanmin, Baidu Post Bar, Baidu Knows, and many other products.
While we acknowledge the potential of BIDU 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 BIDU and that has 100x upside potential, check out our report about this cheapest AI stock.
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