On December 16, Julian Emanuel, Senior Managing Director at Evercore ISI, shared his outlook on the equity market and the ongoing influence of AI. When asked if the market can continue to climb despite recent turbulence in AI infrastructure and software, Emanuel acknowledged that the market is currently in a digestion phase. He characterized these periods as air pockets and noted that the most recent dip centers on concerns regarding debt financing for the extensive AI build-out. Still, he remains optimistic regarding the positive trend of greater AI adoption and highlighted consumer discretionary companies as examples of firms successfully using AI to increase revenue and manage costs.
Emanuel also admitted that high valuations may lead to a volatile year in 2026, similar to the experience of 2025. Despite this, he argued that there are no apparent economic headwinds currently visible that would typically derail a bull market. He conceded that there is an enormous fog surrounding current data, but expects the market to feel better once new data is released, provided it remains within expected ranges. Consequently, he remains confident in the underlying stability of the economy despite the current lack of traditional data visibility.
That being said, we’re here with a long-term stock portfolio: 10 best stocks for the next decade.
Our Methodology
We sifted through financial media reports and ETFs to compile a list of popular, blue-chip, and wide-moat stocks. From that, we picked stocks with an expected EPS growth rate of at least 15% over the next 3-5 years and that are popular among elite hedge funds and analysts. 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 December 26.
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).
Long-Term Stock Portfolio: 10 Best Stocks for the Next Decade
10. Symbotic Inc. (NASDAQ:SYM)
EPS Forward Long Term Growth (3-5 Year CAGR): 30.00%
Number of Hedge Fund Holders: 21
Symbotic Inc. (NASDAQ:SYM) is one of the best stocks for the next decade. On December 3, TD Cowen raised the firm’s price target on Symbotic to $75 from $50 and maintained a Buy rating on the shares. While the firm acknowledged that the stock’s valuation has become stretched following the earnings report, the underlying results support the core bullish thesis. The quarter showcased significant milestones, like the acquisition of a major customer in a new market and acceleration in deployment timelines.
In FY2025, Symbotic Inc. (NASDAQ:SYM) achieved a revenue increase of 26%, with FQ4 revenue rising 7.23% year-over-year to $618.46 million. However, the company also reported a net loss of $19 million in the quarter, which was a shift from the $16 million net income recorded in FQ4 2024. Still, the company’s EPS for FQ4 totaled $0.58, which exceeded guidance by $0.50.
A major milestone in FQ4 was the signing of Medline, which marked Symbotic’s official entry into the healthcare vertical. Additionally, the company is nearing completion of its first GreenBox site in Atlanta, which is a warehouse-as-a-service venture that has garnered significant customer interest. For FQ1 2026, Symbotic Inc. (NASDAQ:SYM) issued revenue guidance between $610 and $630 million, representing growth of 25% to 29%. Management indicated that revenue growth may be less pronounced in H1 2026 as the company transitions to its next-gen storage designs.
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that develops technologies to enhance operating efficiencies in modern warehouses.
9. Gilead Sciences Inc. (NASDAQ:GILD)
EPS Forward Long Term Growth (3-5 Year CAGR): 22.55%
Number of Hedge Fund Holders: 61
Gilead Sciences Inc. (NASDAQ:GILD) is one of the best stocks for the next decade. On December 12, Morgan Stanley raised the firm’s price target on Gilead to $151 from $147 with an Overweight rating on the shares. The firm informed investors that the regulatory and political uncertainties currently weighing on biopharma are expected to subside. As these policy overhangs fade, Morgan Stanley anticipates a shift in market attention back to the industry’s core financial and operational performance.
Later, on December 15, Gilead Sciences Inc. (NASDAQ:GILD) announced positive topline results from its Phase 3 ARTISTRY-2 clinical trial. The study demonstrated that an investigational once-daily, single-tablet regimen combining bictegravir (75 mg) and lenacapavir (50 mg), referred to as BIC/LEN, is statistically non-inferior to the current standard-of-care, BIKTARVY. This trial focused on virologically suppressed adults with HIV-1 who switched from BIKTARVY to the new combination, meeting the primary efficacy endpoint of maintaining HIV-1 RNA levels below 50 copies/mL at Week 48
Gilead plans to use the results from ARTISTRY-2 alongside data from the ARTISTRY-1 trialwhich announced similar non-inferiority results in November, as the foundation for upcoming regulatory submissions. The company aims to present detailed findings at a future scientific congress. These advancements represent a significant step in Gilead’s 35-year history of HIV innovation, potentially offering a new, simplified treatment option for the millions of people living with the virus globally.
Gilead Sciences Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need in the US, Europe, and internationally.
8. Quanta Services Inc. (NYSE:PWR)
EPS Forward Long Term Growth (3-5 Year CAGR): 16.28%
Number of Hedge Fund Holders: 73
Quanta Services Inc. (NYSE:PWR) is one of the best stocks for the next decade. On December 19, Bernstein lowered the firm’s price target on Quanta Services to $428 from $432, while maintaining a Market Perform rating on the shares. This sentiment was posted as Bernstein provided a more optimistic outlook for 2026 and framed it as a recovery year following a difficult 2025.
The firm noted that 2025 was marked by a typical cyclical downturn in core end markets, but 2026 will see a reversal of this trend as monetary and fiscal policies align to stimulate growth. This shift is expected to trigger positive earnings revisions, with a projected low-to-mid single-digit upside to current expectations.
Earlier on December 8, JPMorgan analyst Mark Strouse upgraded Quanta Services to Overweight from Neutral with a price target of $515, which was increased from $457. In its 2026 outlook for the clean energy sector, JPMorgan updated its ratings with a focus on market consolidation and regulatory shifts. The firm predicts that utility-scale renewables will continue to outperform, though the industry is moving toward larger projects.
This complexity is expected to drive a wave of consolidation between upstream suppliers and downstream developers. Consequently, Strouse favors companies characterized by robust balance sheets, diversified market exposure, and a significant manufacturing footprint within the US.
Quanta Services Inc. (NYSE:PWR) offers infrastructure solutions for the electric & gas utility, renewable energy, communications, pipeline, and energy industries in the US, Canada, Australia, and internationally.
7. ASML Holding (NASDAQ:ASML)
EPS Forward Long Term Growth (3-5 Year CAGR): 17.66%
Number of Hedge Fund Holders: 82
ASML Holding (NASDAQ:ASML) is one of the best stocks for the next decade. On December 10, Citi analyst Andrew Gardiner raised the firm’s price target on ASML to EUR 1,200 from EUR 1,050, while keeping a Buy rating on the shares. As part of its 2026 outlook for the European semiconductor equipment sector, Citi suggested that AI-driven demand will act as a primary catalyst for healthy industry growth. The firm anticipates that this structural tailwind will generate strong momentum for positive earnings revisions across the group.
On the same day, Deutsche Bank also raised the firm’s price target on ASML Holding (NASDAQ:ASML) to EUR 1,150 from EUR 1,000 with a Buy rating on the shares.
Earlier on December 3, Bank of America raised the firm’s price target on ASML to $1,331 from $1,092, while maintaining a Buy rating on the shares. BofA identifies FY2027 as a pivotal inflection point for ASML Holding (NASDAQ:ASML), anticipating a significant upward re-rating of the company’s stock. The firm expects lithography intensity to increase as ASML captures a larger portion of spending within the DRAM market. Furthermore, profit margins are projected to widen due to a more favorable product mix. Highlighting its conviction, BofA has officially named ASML as one of its 25 stocks for 2026.
ASML Holding (NASDAQ:ASML) provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems.
6. AbbVie Inc. (NYSE:ABBV)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.24%
Number of Hedge Fund Holders: 93
AbbVie Inc. (NYSE:ABBV) is one of the best stocks for the next decade. On December 12, Morgan Stanley raised the firm’s price target on AbbVie to $269 from $261 with an Overweight rating on the shares.
Earlier on December 10, HSBC upgraded AbbVie to Buy from Hold with a price target of $265, which was up from $225. The firm highlighted AbbVie’s strong growth momentum and consistent operational execution. The firm downplayed concerns regarding competitive pressure from Tremfya, asserting that it is unlikely to pose a significant threat to Skyrizi’s market dominance.
In Q3 2025, AbbVie Inc. (NYSE:ABBV) reported total net revenues of ~$15.8 billion, representing a 9.10% year-over-year rise. This performance was driven by the explosive growth of newer immunology and neuroscience treatments. The company also earned $1.86 per share, beating estimates by $0.08. The immunology segment remained the company’s powerhouse, generating $7.9 billion in revenue, an 11.2% increase.
This growth was fueled by Skyrizi, which saw sales jump 46% to $4.7 billion, and Rinvoq, which rose 34.1% to ~$2.2 billion. These gains effectively cushioned the decline of Humira, which fell 55.7% to $993 million as biosimilar versions continued to erode its market share. Meanwhile, the oncology sector remained stable with $1.7 billion in revenue, as the growth of newer drugs like Venclexta balanced the impact of price negotiations on Imbruvica.
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that engages in the research and development, manufacture, commercialization, and sale of medicines and therapies worldwide.
5. Lam Research Corporation (NASDAQ:LRCX)
EPS Forward Long Term Growth (3-5 Year CAGR): 17.61%
Number of Hedge Fund Holders: 93
Lam Research Corporation (NASDAQ:LRCX) is one of the best stocks for the next decade. On December 23, UBS raised the firm’s price target on Lam Research to $200 from $175 and kept a Buy rating on the shares.
Earlier on December 18, B. Riley raised the firm’s price target on Lam Research to $195 from $180 with a Buy rating on the shares. The firm highlighted that Lam Research Corporation (NASDAQ:LRCX) is exceptionally well-positioned to benefit from the current surge in memory WFE spending. This advantage stems from the company’s superior exposure to the memory sector and its industry-leading position in etch tech, which provides leverage as manufacturers ramp up their production capacity.
A day before this, Mizuho analyst Vijay Rakesh raised the firm’s price target on the company to $200 from $170 with an Outperform rating on the shares. Rakesh expressed a bullish stance on the company and highlighted an improved outlook for the WFE market. The firm anticipates growth in the sector and has accordingly raised its 2026 WFE spending estimates.
Furthermore, BofA analyst Vivek Arya raised the firm’s price target to $195 from $165, while keeping a Buy rating on December 16. BofA broadly updated its price targets for US semiconductor stocks, framing 2026 as a pivotal midpoint in a decade-long transition. The firm views the current era as part of an 8-to-10-year journey to replace traditional IT infrastructure with hardware optimized for accelerated AI workloads.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the US, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.
4. Micron Technology Inc. (NASDAQ:MU)
EPS Forward Long Term Growth (3-5 Year CAGR): 47.78%
Number of Hedge Fund Holders: 105
Micron Technology Inc. (NASDAQ:MU) is one of the best stocks for the next decade. As of December 26, Micron Technology Inc. (NASDAQ:MU) is currently on analysts’ watchlists.
Earlier on December 18, Lynx Equity raised the price target on Micron Technology to $325 from $180, as the firm maintains a constructive long-term outlook as the memory cycle transitions into its next phase, supported by sustained demand for AI-related hardware. The firm noted that the stock’s recent price surge is a direct result of extreme volatility in DRAM pricing over the last quarter. Supply shortages have become so critical that an estimated 30% of total market demand currently remains unfulfilled. These supply-demand imbalances are expected to stabilize by mid-2026 as new manufacturing capacity begins to contribute to the global supply.
The stock’s aggressive upward movement may lead to near-term volatility or technical pullbacks, but the firm advised investors to view these dips as buying opportunities rather than a reason to sell.
Additionally, Rosenblatt raised its price target on the stock on the same day to $500 from $300 with a Buy rating. The firm remains highly bullish on Micron Technology Inc. (NASDAQ:MU), identifying the company as a primary beneficiary of the surging demand for memory and storage in the AI era. The company’s performance is being driven by two primary factors: successfully negotiating price increases for DRAM and NAND Flash, and the company’s ability to maintain a steady decline in production costs. These tailwinds have allowed management to project a record-breaking 68% Non-GAAP gross margin for the February quarter.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products in the US, Taiwan, Singapore, Japan, Malaysia, China, India, and internationally.
3. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
EPS Forward Long Term Growth (3-5 Year CAGR): 21.80%
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of the best stocks for the next decade. Wall Street analysts continue to be bullish on TSMC.
Earlier on December 7, Bernstein raised the firm’s price target on Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) to $330 from $290 with an Outperform rating. The firm highlighted that TSMC is ramping up its Chip-on-Wafer-on-Substrate capacity to 125,000 wafers per month by the end of 2026. While an increase, Bernstein noted that this capacity will barely suffice to meet the demand for Nvidia’s upcoming Blackwell and Rubin chip architectures through 2025 and 2026, leaving little room for additional projects.
Later on December 10, the analysts at Bernstein SocGen Group reaffirmed their Outperform rating and $330 price target for Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and noted that the firm is currently outpacing both its own fourth-quarter guidance and market consensus. This optimism follows a strong November revenue report, where TSMC recorded NT$344 billion, which marked a significant 24.5% increase year-over-year.
The company’s strategic importance in the AI ecosystem continues to attract bullish sentiment across Wall Street. Beyond Bernstein’s target, BofA raised its own price objective to $360, citing TSMC’s clear trajectory in the AI sector. With production ramping up for next-gen AI accelerators and the latest mobile processors, TSMC remains the primary gateway for the hardware required to power global high-performance computing.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), together with its subsidiaries, manufactures, packages, tests, and sells ICs and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.
2. Nvidia Corporation (NASDAQ:NVDA)
EPS Forward Long Term Growth (3-5 Year CAGR): 37.36%
Number of Hedge Fund Holders: 234
Nvidia Corporation (NASDAQ:NVDA) is one of the best stocks for the next decade. Nvidia Corporation (NASDAQ:NVDA) sports a consensus Buy rating on Wall Street and its average price target suggests a 31.21% upside.
On December 19, Bernstein analyst Stacy Rasgon reaffirmed an Outperform rating for Nvidia with a price target of $275. Despite a recent loss in share price momentum, the firm argues that massive capital expenditure from cloud providers and a recovering GPU narrative make this a compelling entry point for the year ahead. A significant upcoming catalyst is the Rubin architecture, scheduled to succeed the current Blackwell chips in late 2026.
Further upside may come from a major policy shift regarding the Chinese market. Reuters reported that Nvidia signaled its intent to begin exporting its H200 AI chips to Chinese customers before the mid-February Lunar New Year. This followed a major US policy shift earlier this month, where Trump authorized the sale of high-performance chips to approved customers in China, subject to a 25% government fee. The move is a dramatic departure from previous restrictions and marks the first time the H200 has been cleared for export to the region.
Truist also reaffirmed its Buy rating for Nvidia and increased its price target to $275 from $255 on December 19. This adjustment was part of a broader sector update where the firm established its financial projections for 2027, signaling confidence in the long-term trajectory of the semiconductor and AI markets.
Nvidia Corporation (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions in the US, Singapore, Taiwan, China, Hong Kong, and internationally.
1. Alphabet Inc. (NASDAQ:GOOGL)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.36%
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks for the next decade. On December 22, BNP Paribas Exane reaffirmed its Outperform rating and $355 price target for Alphabet. This sentiment followed the company’s announcement, on the same day, that it entered into a definitive agreement to acquire Intersect Power, which is a specialist provider of data center and energy infrastructure, for $4.75 billion in cash plus assumed debt. The firm views this move as a strategic step to accelerate the expansion of Google’s global data center footprint and energy generation capacity. The acquisition will not materially impact Alphabet’s financial figures in the immediate term but will strengthen its long-term competitive positioning in the AI sector.
Intersect Power is a leading developer of clean energy and data center infrastructure. The transaction follows a minority investment Google made in Intersect in late 2024 and comes at a time when energy availability has become the primary bottleneck for AI progress. By bringing Intersect’s world-class team in-house, Alphabet aims to bypass the delays of increasingly strained public utility grids. The deal specifically includes Intersect’s massive pipeline of energy parks, integrated sites that co-locate data centers directly with solar, wind, and battery storage. This includes the companies’ flagship joint project in Haskell County, Texas, which is currently under construction as part of Google’s broader $40 billion investment in the state through 2027.
Alphabet Inc. (NASDAQ:GOOGL) offers various products and platforms in the US, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
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