In this article, we will list the Stocks On The Rise: 5 Best Stocks to Invest In. Please visit Stocks On The Rise: 10 Best Stocks to Invest In if you would like to see the extended list and the methodology behind it.
5. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 87
Caterpillar Inc. (NYSE:CAT) is one of the best stocks on the rise to invest in. Truist lifted the price target on Caterpillar Inc. (NYSE:CAT) to $1,218 from $1,043 on July 2 and maintained a Buy rating on the shares. The firm adjusted estimates and price targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. It further told investors in a research note that it sees a positive setup for fiscal Q2 earnings reports across the sector, and added that demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.
Caterpillar Inc. (NYSE:CAT) also received a rating update from Wells Fargo on June 23. The firm lifted the price target on the stock to $1,155 from $1,050 and maintained an Overweight rating on the shares, telling investors in a research note that the firm’s data center and oil & gas checks indicate Caterpillar prime reciprocating engines and Solar Turbines lead times are into 2029.
Caterpillar Inc. (NYSE:CAT) is involved in the business of industrial gas turbines, manufacturing construction and mining equipment, off-highway diesel and natural gas engines, and diesel-electric locomotives. The company’s operations are divided into the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 112
Intel Corporation (NASDAQ:INTC) is one of the best stocks on the rise to invest in. Intel Corporation (NASDAQ:INTC) received a rating update from HSBC on July 2. The firm lifted the price target on the stock to $200 from $100 and maintained a Buy rating on the shares.
In another development, Reuters reported on June 16 that Intel Corporation (NASDAQ:INTC) has announced the entry of the new generation of its 18A manufacturing process into risk production, as the company sees strong demand for its central processors. It further stated that by moving 18A-P into initial production, Intel Corporation (NASDAQ:INTC) aims to demonstrate that it is following through on its manufacturing commitments, which could potentially make the technology more appealing to external customers. Reuters added that finance chief David Zinsner said in March that the company’s CEO, Lip-Bu Tan, has started recognizing 18A as a potential offering for external clients, changing the earlier perspective that the process would generate returns only through the company’s own products.
Intel Corporation (NASDAQ:INTC) is involved in the design, sale, and manufacture of computer products and technologies. It delivers data storage, computer, networking, and communications platforms. The company’s operations are divided into the following segments: Client Computing Group (CCG), Data Center and AI (DCAI), Intel Foundry Services (IFS), and All Other.
3. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the best stocks on the rise to invest in. Bernstein lifted the price target on Sandisk Corporation (NASDAQ:SNDK) to $3,000 from $1,700 on June 29 and maintained an Outperform rating on the shares. The firm told investors in a research note that the new memory long-term agreements, or LTAs, are different from older ones. It clarified that old LTAs were written in favor of the customer, while newer LTAs have fixed or range-bound prices, have longer terms, and include upfront financial commitments to lock in customers and protect downside.
Bernstein added that based on the data provided by companies, the firm estimates Sandisk Corporation’s (NASDAQ:SNDK) floor price in recently signed LAs is 29c per GB, which compares to a floor price for Micron meaningfully below fiscal Q2 levels. Sandisk Corporation (NASDAQ:SNDK) also received a rating update from BofA on July 1. The firm lifted the price target on the stock to $2,500 from $2,100 and reaffirmed a Buy rating on the shares.
Sandisk Corporation (NASDAQ:SNDK) is involved in the development, manufacture, and provision of storage devices and solutions based on NAND flash technology. The company’s products include solid-state drives, memory cards, and USB flash drives.
2. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 123
Lam Research Corporation (NASDAQ:LRCX) is one of the best stocks on the rise to invest in. Cantor Fitzgerald lifted the price target on Lam Research Corporation (NASDAQ:LRCX) to $500 from $425 on June 29 and maintained an Overweight rating on the shares. The firm told investors in a research note that the AI infrastructure buildout is viewed as a generational semiconductor cycle that is both durable and extended by supply chain constraints, with expectations for faster-than-previously-forecast industry revenue expansion reaching roughly $3T by CY29 and potentially exceeding $3.5T by CY30.
In another development, Susquehanna lifted the price target on Lam Research Corporation (NASDAQ:LRCX) to $475 from $385 on June 30 and maintained a Positive rating on the shares. The firm updated its model after channel checks, suggesting an upward revision to SCE backlog now extending beyond one year, with WFE expected to reach as high as $300B. The firm is now raising its estimates for 2026 and 2027, along with introducing 2028 projections based on WFE of $250B.
Lam Research Corporation (NASDAQ:LRCX) is involved in the design, manufacture, refurbishment, marketing, and provision of semiconductor processing equipment that is used in the fabrication of integrated circuits. The company’s operations are divided into the following geographical segments: the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan.
1. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
Applied Materials, Inc. (NASDAQ:AMAT) is one of the best stocks on the rise to invest in. KeyBanc lifted the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $750 from $550 on June 29 and maintained an Overweight rating on the shares. The firm told investors that expectations for the firm’s Semicap/EMS/OSAT group have grown ever higher heading into fiscal Q2 earnings, potentially increasing ST risk around results. It added that with valuations where they are, the firm believes that for share prices to increase from current levels, investors will need to see beats, management commentary that supports continued positive out-year revisions, and guidance that comes in above consensus.
KeyBanc further told investors that although it does believe objectively positive outcomes are likely given current conditions, it also thinks that any actual or perceived disappointment could result in downside volatility like what was seen last quarter.
Separately, Applied Materials, Inc. (NASDAQ:AMAT) announced on June 25 the introduction of a suite of new chipmaking systems to build the advanced 3D chip architectures that power next-generation AI.
While we acknowledge the potential of AMAT 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 AMAT and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
