In this article, we will look at the Stocks On The Rise: 10 Best Stocks to Invest In.
On July 2, Ed Yardeni of Yardeni Research appeared on CNBC to talk about the upcoming earnings season and how it is driving market momentum. He was of the view that the story is that this is an earnings-driven market. He coined a word for it, naming it FEMO, which stands for Fabulous Earnings Momentum, not to be confused with Fomo, which is a valuation multiple going up irrespective of what the fundamentals are. FEMO is all about the fabulous earnings momentum, which is what is going on right now.
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Yardeni further stated that he believes the market is definitely broadening, but also that people have AI fatigue. People are getting quite confused about what AI is doing, with all the capital spending, and some of the competition that is bringing token prices down. He added that the government is meddling in the whole game, and at the end of the day, AI is a great new technology just like the Internet was, and it is going to benefit a lot of companies, according to him.
With these broader market trends in view, let’s look at the stocks on the rise: the 10 best stocks to invest in.
Our Methodology
We used stock screeners to make a list of the stocks that have surged at least 50% over the last 6 months and selected the top 10 with the highest number of hedge fund holders as of Q1 2026, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on July 2.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Stocks On The Rise: 10 Best Stocks to Invest In
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 46
Arm Holdings plc (NASDAQ:ARM) is one of the best stocks on the rise to invest in. UBS lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $470 from $260 on June 24 and maintained a Buy rating on the shares.
The stock also received a rating update from Mizuho on June 4. The firm lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $500 from $425, maintaining an Outperform rating on the shares. It told investors in a research note that the company’s agentic AI tailwinds are accelerating as its platform expands with Oracle and ByteDance. The firm believes that Arm Holdings plc (NASDAQ:ARM) could pull in $15 billion in agentic AI infrastructure central processing unit revenue by fiscal 2031 and raised the company’s estimates.
For reference, Arm Holdings plc’s (NASDAQ:ARM) fiscal Q4 2026 quarterly earnings marked the company’s highest quarterly revenue ever, with the third straight year of 20%+ revenue growth. Its revenue for the quarter reached $1.49 billion, while full-year revenue was $4.92 billion. The company also delivered record full-year royalty revenue of $2.61 billion alongside Q4 revenue at $671 million, driven by growth across Edge AI, smartphones, Physical AI, and Cloud AI, where data center royalties more than doubled year-over-year.
Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of systems IP, microprocessors, graphics processing units, physical IP, and associated systems IP, software, and tools. Its operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.
9. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 71
Texas Instruments Incorporated (NASDAQ:TXN) is one of the best stocks on the rise to invest in. UBS lifted the price target on Texas Instruments Incorporated (NASDAQ:TXN) to $350 from $295 on June 29 and reaffirmed a Buy rating on the shares. For reference, in its financial results for fiscal Q1 2026, the company reported that its revenue rose 9% sequentially and 19% from the same quarter a year ago, with growth attributed to industrial and data center. Texas Instruments Incorporated (NASDAQ:TXN) further reported that its cash flow from operations reached $7.8 billion for the trailing 12 months, which highlights the strength of its business model, the benefit of 300mm production, and the quality of its product portfolio. Free cash flow for the same period was $4.4 billion.
Furthermore, over the past 12 months, Texas Instruments Incorporated (NASDAQ:TXN) has invested $3.9 billion in R&D and SG&A, invested $4.1 billion in capital expenditures, and returned $6.0 billion to owners.
Texas Instruments Incorporated (NASDAQ:TXN) is involved in the design and manufacture of semiconductors. The company’s operations are divided into the following segments: Analog, Embedded Processing, and Other.
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