On January 24, Katie Stockton of Fairlead joined ‘Closing Bell Overtime’ on CNBC to discuss how the loss of intermediate tech momentum has been weathered really well. Stockton provided a technician’s perspective on the market’s current three-month stall out. Discussing the index’s recent flattening following a strong run, Stockton attributed the shift primarily to the tech sector. She explained that large-cap tech has underperformed since late October, which caused a loss of intermediate-term momentum for the S&P 500. This shift is significant because it follows a very strong uptrend that peaked in October, highlighting the heavy influence tech has on the broader market.
Stockton noted that while intermediate-term momentum has faded, the market has weathered the change well. She pointed out that the indices have maintained higher lows since November and suggested that the current period is a consolidation phase near all-time highs rather than a dramatic downside move. However, she emphasized that the character of the market has changed, proving how essential large-cap tech names are for driving upside movement. Regarding the future of these tech leaders, Stockton views the current state as a corrective phase that should result in an oversold bounce.
That being said, we’re here with a list of the 9 best performing new tech stocks to buy now.
Our Methodology
We first sifted through the Finviz stock screener to compile a list of new tech stocks that went public in the last 5 years (including spin-offs) and also had a 6-month performance of at least 20%. We then selected 9 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 28.
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).
9 Best Performing New Tech Stocks to Buy Now
9. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Number of Hedge Fund Holders: 56
6-Month Performance: 20.03%
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best performing new tech stocks to buy now. On January 21, Rosenblatt initiated coverage of Credo Technology with a Neutral rating and a $170 price target. The firm projects explosive growth for 2026, anticipating that revenue will nearly triple and earnings will more than quadruple. This optimistic near-term outlook is supported by Credo’s robust tech stack, its first-mover status in 400G and 800G solutions, and its strong position in both scale-out and scale-up connectivity for AI data centers. However, despite these advantages, Rosenblatt remains cautious, warning that the company will soon face imminent pressure from increasing competition.
Earlier on January 15, Barclays analyst Tom O’Malley raised the price target for Credo Technology Group Holding Ltd. (NASDAQ:CRDO) to $260 from $220, while maintaining an Overweight. This revision was part of a broader 2026 outlook for the semiconductor and semiconductor capital equipment sectors, where Barclays expects stock performance to be dictated by a company’s link to AI.
The analyst expressed a preference for companies that are fundamental to the AI ramp and suggested that high-quality stocks will eventually lead the market. He anticipated this would occur even as investors continue to debate how much of the current AI opportunity can be successfully deployed in the coming year.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) provides various high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications in the US, Taiwan, Mainland China, Hong Kong, and internationally.
8. Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Hedge Fund Holders: 62
6-Month Performance: 24.67%
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the best performing new tech stocks to buy now. On January 28, Goldman Sachs raised its price target for Zeta Global from $23 to $26 while maintaining a Neutral rating on the stock. The firm anticipates an acceleration in software-sector M&A throughout 2026, fueled by compressed public market valuations and the inherent strengths of established software businesses. These structural advantages allow incumbent SaaS companies to create value by acquiring innovative private-market technologies at attractive multiples and realizing cross-portfolio synergies.
Earlier on January 15, Morgan Stanley also increased its price target for Zeta Global to $27 from $23, reflecting a more optimistic perspective on the application SaaS sector for 2026. This adjustment came after a year where SaaS names largely lagged behind the broader software and technology markets. However, the firm now believes that the risks associated with AI disruption are proving to be less severe than previously anticipated.
While this shift supports a more favorable outlook for the coming year, Morgan Stanley maintains a selectively opportunistic stance. This cautious approach is attributed to the lack of widespread, positive revisions in corporate spending, suggesting that while the environment is improving, the firm remains focused on specific high-quality opportunities rather than the sector as a whole.
Zeta Global Holdings Corp. (NYSE:ZETA) operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the US and internationally.
7. DLocal Limited (NASDAQ:DLO)
Number of Hedge Fund Holders: 26
6-Month Performance: 32.30%
DLocal Limited (NASDAQ:DLO) is one of the best performing new tech stocks to buy now. On January 20, Truist raised its price target for DLocal to $17 from its previous target of $16 while maintaining a Buy rating. This adjustment was posted ahead of the company’s Q4 2025 earnings report, as part of a research note focused on the FinTech sector. The firm anticipates that DLocal will deliver a solid performance for the quarter, though it cautions that challenging year-over-year comparisons might make it difficult for the company to significantly exceed volume expectations.
Additionally, Truist remains generally optimistic about the FinTech group’s trajectory throughout 2026 and suggests that investors should be prepared for potential shifts in outlook. Specifically, the firm indicates that some management teams across the sector might choose to issue more conservative initial guidance for 2026 in an effort to reset Wall Street’s expectations to a more manageable level.
Furthermore, earlier on December 17, Itau BBA analyst William Barranjard initiated coverage of DLocal with an Outperform rating, while setting a $21 price target on the company’s shares.
DLocal Limited (NASDAQ:DLO), together with its subsidiaries, operates a payment processing platform worldwide. The company offers a robust pay-in solution that allows businesses to get paid for their products and services through various payment methods.
6. Astera Labs Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 57
6-Month Performance: 37.79%
Astera Labs Inc. (NASDAQ:ALAB) is one of the best performing new tech stocks to buy now. On January 15, Barclays analyst Tom O’Malley raised the price target for Astera Labs to $165 from $155, while maintaining an Equal Weight rating. This decision was made as part of the firm’s 2026 semiconductor sector outlook. O’Malley identified proximity to AI as the primary engine for stock performance in the coming year, favoring companies deeply integrated into the AI ramp. He anticipates that high-quality firms will distinguish themselves in 2026, even as the market continues to debate the actual pace and scale of AI deployment.
A day before that, RBC Capital initiated coverage on Astera Labs with an Outperform rating and a $225 price target, suggesting that market worries regarding Ethernet and NVLink Fusion were exaggerated. The firm highlighted that Astera’s UALink opportunity remains substantial regardless of which scale-up technologies the industry adopts.
However, earlier on December 16, Bank of America lowered the price target for Astera Labs to $170 from $210 with a Neutral rating as part of a broad update to US semiconductor stock valuations. BofA views 2026 as the midway point of a decade-long transition toward upgrading IT infrastructure for AI-driven workloads.
Astera Labs Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. The company serves hyperscalers and system OEMs.
5. Core Scientific Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 68
6-Month Performance: 45.07%
Core Scientific Inc. (NASDAQ:CORZ) is one of the best performing new tech stocks to buy now. On January 26, Keefe Bruyette raised the price target on Core Scientific to $25 from $19 with an Outperform rating, having updated the company’s model ahead of the Q4 2025 report. The firm noted that Core Scientific is executing a full pivot from bitcoin mining to HPC leasing, though the shares remain valued largely on existing CoreWeave leases, and Keefe Bruyette sees an attractive setup for the shares ahead of expected pipeline updates and new deals.
Additionally, earlier on January 6, BTIG analyst Gregory Lewis upgraded Core Scientific Inc. (NASDAQ:CORZ) to Buy from Neutral with a $23 price target. Lewis stated that the dust settled following the shareholder rejection of its merger with CoreWeave Inc. (NASDAQ:CRWV).
Lewis also stated that Core Scientific has been one of the worst-performing stocks among those with signed contracts to convert power infrastructure from crypto mining to high-performance computing, but BTIG expects the company to hit the ground running in 2026 by securing additional HPC colocation contracts as power infrastructure for compute remains strong.
Core Scientific Inc. (NASDAQ:CORZ) provides digital asset mining services in the US. It operates through three segments: Digital Asset Self-Mining, Digital Asset Hosted Mining, and HPC Hosting.
4. CS Disco Inc. (NYSE:LAW)
Number of Hedge Fund Holders: 19
6-Month Performance: 56.66%
CS Disco Inc. (NYSE:LAW) is one of the best performing new tech stocks to buy now. On January 5, Jefferies analyst Brent Thill increased the price target for CS Disco to $8, which was brought up from $6, while maintaining a Hold rating. In a broader software sector note, Thill suggested that while 2026 will see continued incremental AI monetization, the company needs faster growth to calm investor fears regarding AI disruption. He noted that while software value should eventually rise, current historical valuations mean investors will likely need to remain patient.
In Q3 2025, CS Disco Inc. (NYSE:LAW) highlighted a 13% year-over-year increase in total revenue to $40.9 million and a 17% jump in software revenue. A major driver of this growth was the rapid adoption of the company’s GenAI tool, called Cecilia AI, which saw its customer base more than triple compared to the previous year. Furthermore, the company successfully beat the high end of its revenue guidance and adjusted EBITDA.
Despite these gains, the company continues to navigate financial challenges as it prioritizes long-term innovation over immediate profits. Adjusted EBITDA remained slightly negative at $297,000 due to strategic investments in market expansion. The company is intentionally spending on product development to capture market share, which includes a focus on high-value areas like IP litigation and maximizing the impact of the AI-integrated platform.
CS Disco Inc. (NYSE:LAW) provides cloud-native and AI-powered legal products for legal hold, legal request, ediscovery, legal document review, and case management in the US and internationally.
3. Nextpower Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 41
6-Month Performance: 61.92%
Nextpower Inc. (NASDAQ:NXT) is one of the best performing new tech stocks to buy now. On January 27, TD Cowen raised the price target on Nextpower from $88 to $105, while reiterating a Hold rating. This rating was posted after the company released its FQ3 2026 earnings report on the same day.
In FQ3 2026, Nextpower Inc. (NASDAQ:NXT) reported a 34% year-over-year revenue increase to $909 million, which was driven by a record backlog and robust demand in both US and international markets. This led to Nextpower becoming the first pure-play solar product company to earn a formal investment-grade rating from Fitch, a milestone that management expects will support customer confidence and lower capital costs. Consequently, the firm raised its FY2026 revenue guidance to a range of $3.43 billion to $3.50 billion.
The company also completed the formation of the Nextpower Arabia joint venture with Abu Nayyan Holding, securing a massive 2.25 GW supply commitment for the Bisha Solar Project in Saudi Arabia. While tariffs presented a $44 million headwind during the quarter, management highlighted the successful rollout of new platform components and bundled services like TrueCapture, which are helping to sustain gross margins in the low 30s.
Nextpower Inc. (NASDAQ:NXT) provides solar tracker technologies and solutions for utility-scale and distributed generation solar applications in the US and internationally.
2. DigitalOcean Holdings Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 30
6-Month Performance: 106.69%
DigitalOcean Holdings Inc. (NYSE:DOCN) is one of the best performing new tech stocks to buy now. On January 27, Bank of America analyst Wamsi Mohan raised the firm’s price target on DigitalOcean to $72 from $60 with a Buy rating. Mohan noted that the company’s shares are trading higher as agentic AI assistants, specifically Clawdbot, gain traction across developer communities. The firm is raising its multiple to reflect the early innings of agentic AI adoption and broadening use cases. DigitalOcean is positioned to capitalize on early-stage AI agent deployments as developers prioritize an always-on server with predictable unit economics.
Earlier on January 12, Barclays raised the firm’s price target on DigitalOcean to $63 from $49 with an Overweight rating, having adjusted ratings in the software group as part of its 2026 outlook. Barclays sees a favorable setup for software in 2026, citing stable macro and IT spending while noting that stock valuation levels are low and the sector is out of favor.
Piper Sandler also raised the price target on DigitalOcean Holdings Inc. (NYSE:DOCN) to $50 from $47 with a Neutral rating on January 5, slightly adjusting estimates following a cohort update. While the firm is encouraged by bigger deal momentum, a mix shift, and the potential of a mini-analyst day catalyst, Piper Sandler sees little room for error at these levels due to limited visibility and the fact that 2026 NNARR assumes the company will add more than it is already projected to do in 2025.
DigitalOcean Holdings Inc. (NYSE:DOCN), through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. It provides on-demand infrastructure and platform tools for developers at growing tech companies.
1. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 61
6-Month Performance: 1,049.27%
Sandisk Corporation (NASDAQ:SNDK) is one of the best performing new tech stocks to buy now. On January 26, Mizuho raised its price target on SanDisk to $600 from $410 with an Outperform rating, citing a belief that pricing tailwinds in legacy DRAM and NAND markets will improve 2026 sales and margins for the memory group. The firm expects no new NAND wafer capacity in 2026 or 2027 while demand expands over 20% in 2026, leading to estimated annualized NAND pricing increases of 330% year-over-year in 2026 and 50% in 2027 as AI server demand accelerates. Consequently, the firm increased price targets across the memory sector to reflect this anticipated tight supply environment.
On the same day, Morgan Stanley raised its price target on Sandisk Corporation (NASDAQ:SNDK) to $483 from $273 with an Overweight rating and noted that NAND fundamentals remain exceptional due to a surge in enterprise solid state drives, tightening consumer markets.
The firm is raising its numbers on NAND pricing strength while keeping estimates in-line with management guidance for the December quarter; for March, the firm now models revenue of $2.94 billion and non-GAAP EPS of $5.71 based on NAND average selling prices increasing 20% sequential and bits decreasing 6%. The firm added that its through-cycle estimate of $13 in earnings power is likely too low as financial figures continue to rise.
Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash tech in the US, Europe, the Middle East, Africa, Asia, and internationally.
While we acknowledge the potential of SNDK 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 SNDK and that has 100x upside potential, check out our report about this cheapest AI stock.
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