As we enter 2026 and investors weigh their options, a common question is: What are the top American companies to buy and hold? AI remains a top theme. AI stocks started 2026 on a positive note, with many stocks recovering from their retracements in the last week of 2025. Speaking with Schwab Network, Senior Markets Correspondent Kevin Green noted that AI storage names like Micron and chipmakers led by Nvidia are expected to continue performing strongly in 2026. He stated:
I think for 2026 it’s going to be two things. Obviously, the memory players are doing a phenomenal job, at least so far. If you’re looking at some of their valuations, they’re obviously stretched but the market can push this higher if demand is going to continue to ramp up.
He noted that more and more data centers are seeking higher throughput and performance, which are constrained by the amount of memory that can be fed into them at a time. The availability of higher-bandwidth memory should increase spending on this component of data centers, thereby driving higher demand.
Other analysts are looking at sector rotation. Speaking to CNBC on December 30, analyst Devin Ryan of Citizens JMP identified the banking sector as an obvious choice for 2026. He sees regional banks as a better play for investors, even though many still haven’t forgotten the 2023 regional banking crisis. On the sector, he further stated:
There’s a few ways we can play this. One is deregulation, and the ability for banks to utilize capital and generate better returns on that capital.
Ultimately, investors choose the risks they want to take. As in previous years, the US stock market should continue to lead the world in investor interest, so identifying the top American companies to buy and hold in 2026 remains the most important question for investors.
With that, let’s explore our selection of the 8 best American stocks to buy and hold in 2026.
Our Methodology
To identify the 8 Best American Stocks to Buy and Hold in 2026, we used Insider Monkey’s Q3 hedge fund database to pick the most popular U.S.-based stocks among hedge funds. We then shortlisted stocks with positive upside potential and at least 10% expected revenue growth in 2026. The stocks were then ranked in ascending order of the number of hedge funds holding stakes in them.
Why do we care about what hedge funds do? 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 pricing data is as of market close on January 2, 2026.
8. Tesla Inc. (NASDAQ:TSLA)
Potential Upside: 4.2%
Expected 2026 Revenue Growth: 14.4%
Number of Hedge Fund Holders: 120
Wedbush analyst Dan Ives has released an update on Tesla Inc. (NASDAQ:TSLA) stock after the EV maker announced its delivery figures for the full year 2025. While the delivery numbers weren’t impressive, the analyst was upbeat, calling them a step in the right direction.
In Q4, Tesla delivered 418,227 vehicles while producing 434,358. In the whole calendar year, 1,654,667 vehicles were produced, and 1,636,129 were delivered to customers. Ives believes that Tesla has some work to do to make a comeback in the vehicle delivery area, especially after the loss of the $7,500 tax credit and multiple headwinds in Europe.
Going forward, he believes robotics and autonomous driving will drive the company’s bull thesis, even if the vehicle delivery numbers continue to underwhelm:
”We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…”
Ives calls CyberCab the golden goose when it comes to unlocking Tesla’s AI potential and valuation. For now, he has a $600 price target with an Outperform rating on the stock.
Tesla Inc. (NASDAQ:TSLA) is a household name when it comes to Electric vehicles, but the company does much more than sell cars. Its portfolio includes energy generation, storage, and robotics. It is headquartered in Austin, Texas.
7. Capital One Financial Corp (NYSE:COF)
Potential Upside: 8.18%
Expected 2026 Revenue Growth: 18.2%
Number of Hedge Fund Holders: 129
On January 2, Keefe, Bruyette & Woods raised its target price on Capital One Financial Corp (NYSE:COF) stock from $260 to $290. Three days before that, Citi also raised its target price from $290 to $310. The $310 target price is the highest among all analysts, as per the 26 analyst ratings compiled by CNN.
This bullish sentiment has been witnessed across some major funds as well. In its filing on January 1, Allspring Global Investments more than doubled its shareholding in the company, bringing it to a total of 496,245 shares. While the exact reason for increasing their holding wasn’t disclosed, it is likely the acquisition of Discover, carried out earlier in the year, which is expected to deliver $1.5 billion in synergies to the business.
There is also some clarity on the litigation front, as COF has simplified its proposed settlement regarding the allegedly misleading interest-rate advertisement for its Capital One 360 Savings accounts. The company has proposed that all of the $425 million be distributed as direct payments to the lawsuit participants. Previously, $125 million of this was suggested to be distributed as a future interest fund. The preliminary court approval is set for January 12, with a final approval likely in April this year.
Capital One Financial Corp (NYSE:COF) is the largest credit card issuer in the US by loan volume. It is a diversified financial holding company that was originally spun off from Signet Financial in 1994 and is now headquartered in McLean, Virginia.
6. Uber Technologies Inc. (NYSE:UBER)
Potential Upside: 36.24%
Expected 2026 Revenue Growth: 15.85%
Number of Hedge Fund Holders: 143
On December 31, Valida Pau and Cory Weinberg of The Information reported that Uber Technologies is in talks to acquire SpotHero, a parking app that is increasingly gaining traction among users. SpotHero is used to reserve parking spaces, something that offers a natural synergy with ride-hailing, Uber’s main business. For instance, Uber users could travel to a parking spot they have already booked and switch to ride-hailing after leaving their personal car there.
The news outlet that broke this news was unable to put a number to the potential deal, reporting that negotiations are ongoing and there is no guarantee that the deal will go through. SpotHero’s most recent funding round valued the company at $290 million.
Interestingly, SpotHero has a history of working with a ride-hailing app thanks to its partnership with Lyft in 2022 and 2023. This partnership was terminated because Lyft wanted to focus on its core business of ride-hailing and discontinue non-core initiatives like booking a parking spot. The termination, therefore, did not have anything to do with SpotHero, which only became a victim of a strategic shift at Lyft’s end.
Uber Technologies (NYSE:UBER) is a multinational transportation company mainly known for its ride-hailing services. Apart from ride-hailing, it also offers food delivery, courier services, and freight transport. It is headquartered in San Francisco, California.
5. NVIDIA Corporation (NASDAQ:NVDA)
Potential Upside: 32.89%
Expected 2026 Revenue Growth: 50%
Number of Hedge Fund Holders: 234
According to a Form 8-K filing with the U.S. Securities and Exchange Commission, the company completed its purchase of $5 billion in shares from Intel on December 29. Under the deal, Intel sold 214,776,632 shares of its common stock to Nvidia at $23.28 per share, generating a total of $5 billion in cash. Following the announcement, NVDA shares dropped in premarket trading on December 29.
This deal is viewed as a strategic investment by Nvidia in a company that has faced financial headwinds and shrinking market share. NVDA first announced plans for the $5 billion investment in Intel on September 18, 2025. The two companies also agreed to jointly develop chips for PCs and data center applications as part of the broader agreement.
Nvidia CEO Jensen Huang expressed his thoughts about the collaboration by saying:
”This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem—a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Mizuho Securities analyst Vijay Rakesh reaffirmed his Buy rating on the stock on December 29. He also maintained a $245 price target for the shares, implying a further 30.17% upside from current levels. This upside is consistent with the median analyst upside estimate of 32.82%, based on 69 analysts covering the stock on Wall Street.
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company. The company offers graphics and computing & networking solutions across the United States, China, Singapore, Hong Kong, Taiwan, and internationally. It operates through the Compute & Networking and Graphics segments.
4. Alphabet Inc. (NASDAQ:GOOGL)
Potential Upside: 4.25%
Expected 2026 Revenue Growth: 14%
Number of Hedge Fund Holders: 243
On January 5, Alphabet Inc. (NASDAQ:GOOGL) investors received positive news from South Korea, where Samsung’s leadership announced it planned to double the number of smartphones offering Google Gemini-backed ‘Galaxy AI’ features, as reported by Reuters. This would take the total number of mobile devices using Gemini-powered AI to 800 million.
Samsung’s move is set to boost Alphabet’s plans to compete with OpenAI and attract more customers to its AI models. OpenAI launched its GPT-5.2 model only a few weeks after Gemini 3 in November last year. Samsung’s confidence in accelerating its AI deployments using Gemini is a big positive for Alphabet. The fact that timing is important in AI development was also made clear by Samsung President T M Roh’s words:
”We will apply AI to all products, all functions, and all services as quickly as possible.”
Samsung is racing to surpass Apple in the smartphone market, an objective that directly benefits Alphabet investors, as Samsung is also the largest backer of Android, Alphabet’s smartphone operating system.
Over the past month, Alphabet Inc.’s (NASDAQ:GOOGL) stock has outperformed the broader market, gaining 6.8%. In mid-December, Doug Anmuth, an analyst at JPMorgan, projected that the stock could surge a further 23% in 2026, as he believes the company’s leadership in full-stack AI and rapid growth in Google Cloud are expected to drive this growth. The firm raised its price target to $385 while maintaining a Buy rating. Around the same time, analysts at Mizuho also raised GOOGL’s price target to $385, implying a similar upside potential.
Alphabet Inc. (NASDAQ:GOOGL) provides different platforms and products across the United States, the Asia-Pacific, Latin America, the Middle East, Canada, Europe, and Africa. The company operates through the Google Cloud, Google Services, and Other Bets segments. It is based in Mountain View, California.
3. Meta Platforms, Inc. (NASDAQ:META)
Potential Upside: 25.23%
Expected 2026 Revenue Growth: 18%
Number of Hedge Fund Holders: 273
As part of the company’s ongoing efforts to expand its AI capabilities, Meta announced on December 30 that it had acquired Manus, a Singapore-based developer of general-purpose AI agents. Through this acquisition, the tech giant will enhance the integration of advanced AI into its business and consumer products.
Manus was originally founded in China by Butterfly Effect Technology before relocating its headquarters to Singapore. Earlier this year, the firm introduced its first general AI agent. This AI agent is designed to carry out complex tasks such as coding, market research, and data analysis.
CEO of Manus, Xiao Hong, highlighted in a company release:
”Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made.”
Although the financial terms of the deal were not officially disclosed, the Wall Street Journal reported that the transaction was valued at more than $2 billion, citing sources familiar with the acquisition. According to the report, when Meta initiated acquisition talks, the startup was seeking new funding, which valued it at approximately $2 billion.
This acquisition supports META CEO Mark Zuckerberg’s emphasis on data centers, AI infrastructure, and monetization beyond metaverse initiatives.
Meta pointed out how it intends to leverage Manus’s services across its business segments:
”Manus is already serving the daily needs of millions of users and businesses worldwide … We plan to scale this service to many more businesses.”
Meta Platforms, Inc. (NASDAQ:META) develops products that enable people to share and connect with family and friends across personal computers, mobile devices, augmented reality, wearables, and virtual and mixed reality headsets. The company operates through the Family of Apps (FoA) and Reality Labs (RL) segments.
2. Microsoft Corporation (NASDAQ:MSFT)
Potential Upside: 33.23%
Expected 2026 Revenue Growth: 15%
Number of Hedge Fund Holders: 312
On December 29, Wedbush released a report highlighting its top five artificial intelligence investment picks for 2026. Microsoft Corporation (NASDAQ:MSFT) remains one of Wedbush’s top five AI picks. Wedbush analyst Dan Ives called the company the “clear front-runner” in enterprise-scale AI.
Wedbush analyst Dan Ives expressed his optimism in an investor note by saying:
”The Street is underestimating the Azure growth story in our view, and the AI-driven shift about to happen in Redmond heading into 2026, making Microsoft one of our favorite large-cap tech names to own over the coming year. While AI use cases built markedly in FY25, it’s clear that FY26 for Microsoft remains the true inflection year of AI growth as CIO lines build for deployments.”
In addition to Wedbush, Microsoft is also ranked among Evercore’s top enterprise software stocks for 2026 on December 22. The firm highlighted MSFT’s deep integration in enterprise IT spending through its software offerings, AI products, and cloud platform. Evercore said that the firm’s extensive presence across AI services, Azure, and productivity tools positions it to remain a priority for customers.
Evercore analysts stated in an investor note:
”While we see the party broadening out in 2026, we do not see investors fleeing the infrastructure trade in software. As such, MSFT, SNOW, and ORCL remain three of our top ideas for next year.”
Microsoft Corporation (NASDAQ: MSFT) is a developer and provider of services, solutions, software, and devices. The company operates through the Intelligent Cloud, Personal Computing, and Productivity and Business Processes segments.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Potential Upside: 28.72%
Expected 2026 Revenue Growth: 11%
Number of Hedge Fund Holders: 332
On December 29, Evercore ISI named Amazon.com, Inc. (NASDAQ:AMZN) as its top large-cap Internet pick for 2026. Analyst Mark Mahaney and his team highlighted the continued momentum at Amazon Web Services, following the AWS unit’s 20% year-over-year growth in the third quarter. This marked its fastest growth rate in the 11 quarters. For the first time since the third quarter of 2022, the growth rate surpassed that of Microsoft Azure. The analyst noted that the artificial intelligence narrative surrounding AWS has become more positive, supporting investor confidence.
Mahaney expressed his views by saying:
”At the end of the day, AMZN remains a high-quality compounder (25% EPS CAGR), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to inflect up materially in a 24-month timeframe.”
Looking forward to 2026, Evercore ISI identified several additional catalysts for Amazon beyond AWS, including Trainium chips, ramping Alexa+ engagement, the grocery business, Amazon Pharmacy, Amazon Leo, Zoox’s robotaxi service, and renewed focus on the Amazon for Business segment.
Following a strategic review, the company announced on December 28 that it had paused its plans for commercial drone deliveries in Italy.
In an emailed statement to Reuters, the company spokesperson said:
”Despite positive engagement and progress with Italian aerospace regulators, the broader business regulatory framework in the country does not, at this time, support our longer-term objectives for this program.”
Amazon.com, Inc. (NASDAQ:AMZN) is involved in the retail sale of subscription services, advertising, and consumer products through physical and online stores. It operates in the International, North America, and Amazon Web Services (AWS) segments.
While we acknowledge the potential of AMZN as an investment, 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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