On November 5, the S&P 500 fell 4.36%, its worst day since the April 2025 tariff crash, with roughly $3 trillion in value wiped off S&P 500 companies. The Nasdaq Composite dropped 5.52% to slip into a correction, and chip stocks took the hardest hit, with the Philadelphia Semiconductor Index falling about 12%, its worst day since 2020. The slide followed a rough October, when the technology sector of the S&P 500 lost 6.8%, its biggest monthly drop since March 2025, while defensive groups such as consumer staples had a record month. Growth stocks tend to feel these swings first, because their prices rest on the promise of faster sales and earnings than the rest of the market.
Investors Question the Cost of AI
The worry behind the selling is money. Investors are asking how companies will pay for their enormous artificial intelligence budgets and whether the returns will justify them. The midterm election results added a second concern, as investors began questioning whether the pace of data center construction could slow if new rules follow, which would weigh on AI spending. Our ranking of semiconductor stocks to hold for the next decade covers more of the group that took the sharpest hit.
Why a Ten-Year View Looks Past One Bad Month
A growth stock is a share in a company expected to grow its sales and earnings faster than the market average. These companies usually reinvest profits instead of paying dividends, so shareholders are rewarded through a rising share price, which is why the shares often carry high price-to-earnings ratios. A high multiple is not automatically expensive if the growth keeps coming, but it leaves little room for disappointment, and a stock priced for strong growth can fall sharply when the numbers fall short. Time helps in the other direction, because returns that stay invested earn returns of their own, a snowball effect that builds the longer the money is left alone.
The economy is adding another variable. October’s jobs report showed payrolls up 165,000, far above the 65,000 economists expected, and traders now put the odds of a Federal Reserve rate hike in December above 75%. Edward Jones senior global strategist Angelo Kourkafas called it a “blowout jobs report.” A strong economy is good for business, but higher interest rates make far-off earnings worth less today, which tends to weigh most on growth stocks. For readers hunting for bargains after the pullback, our list of undervalued growth stocks is a place to start. For long-term holders, the more useful question is not what the market does next month but which companies can keep compounding through several more months like this one.
Our Methodology
To compile this list, we searched for the best stocks to hold for the next 10 years across investor forums, social media, and financial websites, keeping only growth stocks mentioned by at least three different sources. From those, we picked the 10 with the largest market caps and ranked them in ascending order of market cap. We also list hedge fund holders as of Q2 2026.
Note: All data was sourced on November 9, 2026.
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 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10 Best Growth Stocks to Buy for the Next Decade
10. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 184
Market Cap: $825.89 billion
Gavin Baker, who runs Atreides Management, has been one of the most outspoken voices on memory chips, arguing that the shortage will last and that Micron looks inexpensive for what it earns. Philippe Laffont’s Coatue Management backed that view with money, adding nearly three million shares in a single quarter, and David Tepper’s Appaloosa tripled its own stake late last year before trimming some of it.
Micron’s own results give them something to point to. Revenue in the fiscal fourth quarter reached $54.23 billion, up 379% from a year earlier, and the full year came in at $133.19 billion, with data center revenue up fourfold. Gross margin and earnings per share also set records.
Chief Executive Officer Sanjay Mehrotra said the company has agreements covering the vast majority of its calendar 2027 high-bandwidth memory supply, at significantly higher prices than a year earlier, and that he expects an even stronger fiscal 2027. That is the part that turns a strong quarter into a decade-long argument: customers have agreed to buy most of the high-bandwidth memory Micron plans to supply next year, before it has been made, which gives the long-term pitch a base of demand to stand on.
Read our analysis on Micron Technology (MU) here: Micron (MU) Is Trading at 5x Earnings Despite 87% Margins. What Is Wall Street Missing?
9. Eli Lilly (NYSE:LLY)
Number of Hedge Fund Holders: 152
Market Cap: $1.33 trillion
Cathie Wood’s Ark Invest bought Lilly shares this year, treating it as the GLP-1 leader with a deep pipeline in other diseases. Baron Funds, founded by Ron Baron, wrote in a shareholder letter that it sees Mounjaro, Zepbound, and the oral drug orforglipron as transformational and expects this drug class to become the standard of care for diabetic and non-diabetic obese patients alike. Ken Griffin’s Citadel also nearly quadrupled its stake in the second quarter.
The latest quarter shows how that demand is building. Revenue rose 39% to $24.4 billion, led by Mounjaro and Zepbound, and Lilly raised its 2026 revenue outlook by $5.5 billion at the midpoint. Chief Executive Officer David Ricks said the growth came from broad global consumer demand for the two drugs, the global launches of Foundayo, and expanded US coverage.
The pipeline is the other half of the pitch. Lilly reported positive Phase 3 results for retatrutide in a head-to-head trial against Ozempic in adults with type 2 diabetes, and said Phase 3 trials of another candidate are set to start. For the bulls, that steady flow of new medicines is what lets Lilly keep growing after today’s best sellers mature.
You can read our analysis on Eli Lilly (LLY) here: Eli Lilly (LLY) Grew Revenue 48% While Prices Fell, Can Volume Keep Winning?
8. Tesla (NASDAQ:TSLA)
Number of Hedge Fund Holders: 116
Market Cap: $1.49 trillion
Ron Baron, founder of Baron Capital, told CNBC that Tesla could reach $2,000 to $2,500 a share within ten years. Cathie Wood’s Ark Invest has published a similar long-range view, a $2,600 target for 2029 that rests on robotaxis supplying nearly 90% of Tesla’s enterprise value. Take the robotaxi out, and Ark’s own model falls sharply.
The company began giving Robotaxi rides in Cybercabs in Austin late in the quarter, and cumulative unsupervised Robotaxi miles grew eightfold from the prior quarter, driven by sustained double-digit weekly growth. It ended the period with its largest backlog for passenger vehicles in four years and its highest-ever order rate and backlog in energy storage, a business Tesla says is critical to data center uptime.
Management said battery availability, not demand, was the limit on how many cars it could build, and that it made more progress in securing future supply. If that supply arrives, more of the backlog can turn into deliveries, which is the practical bridge between today’s order book and the bigger robotaxi and energy plans long-term holders are waiting on.
Our latest analysis on Tesla (TSLA) is available here: Tesla (TSLA) Needs Stronger Earnings to Justify Its Autonomy Ambitions
7. Broadcom (NASDAQ:AVGO)
Number of Hedge Fund Holders: 170
Market Cap: $1.53 trillion
Cathie Wood’s Ark Invest has repeatedly added to Broadcom, although the firm sold some shares during the November 5 market selloff, and its Big Ideas report projects that data center spending on AI will rise nearly threefold by 2030, with the custom chips Broadcom designs for the biggest cloud companies set to capture a share of it. Stanley Druckenmiller’s family office opened a new Broadcom position.
The numbers back the pitch. In the fiscal third quarter, Broadcom’s AI semiconductor revenue reached $16.7 billion, up 221% from a year earlier. Chief Executive Officer Hock Tan expects the fiscal fourth quarter to climb to $21.7 billion and has laid out an AI revenue outlook of about $115 billion for fiscal 2027. Free cash flow also set a record for the company.
What makes those targets believable to the bulls is how much supply is already lined up. Tan has also set a fiscal 2028 AI target well above that level and said Broadcom has line of sight to the supply it needs, which the bulls read as a base that grows with every new chip generation rather than a one-year spike or a single strong quarter’s worth of orders.
Read our analysis on Broadcom (AVGO) here: Broadcom’s AI Revenue Surges 221%, But is Growth Becoming Too Dependent on AI Spending?
6. Meta Platforms (NASDAQ:META)
Number of Hedge Fund Holders: 254
Market Cap: $1.64 trillion
Bill Ackman’s Pershing Square disclosed a stake worth about a tenth of its capital and said Meta’s share price undervalues the long-term upside from AI. Its presentation called Meta’s business model “one of the clearest beneficiaries of AI integration,” pointing to better content recommendations, more personalized ads and possible new products such as wearables and AI assistants for businesses. Philippe Laffont’s Coatue Management has also made Meta one of its biggest holdings.
Meta’s third-quarter report supports the idea. Revenue rose 26% to $64.6 billion, helped by a 14% increase in the average price of an ad, which suggests advertisers are getting better results and paying more for them. Impressions grew more slowly than price, so the gain came mostly from higher prices rather than more ads. The growth came even as the company kept raising its spending on data centers and servers.
Meta also sees the momentum continuing. It guided fourth-quarter revenue to a range well above the third quarter’s level and said it will keep investing aggressively through 2027. About 3.64 billion people use at least one of its apps every day, the audience those AI gains are being applied to.
You can read our analysis on Meta Platforms (META) here: Meta (META): Can WhatsApp Become a Meaningful Business Beyond Advertising?
5. Taiwan Semiconductor Manufacturing (NYSE:TSM)
Number of Hedge Fund Holders: 249
Market Cap: $2.03 trillion
Stanley Druckenmiller’s family office has made TSMC its second-largest holding, and he has said he sees “massive disruption” ahead for the chip industry. Cathie Wood’s Ark Invest bought more after a strong earnings report, and David Tepper’s Appaloosa made it his biggest addition of the second quarter. The pitch is simple: whichever company wins the race to design the best AI processor, it still needs someone to build it.
The latest quarter shows how big that position has become. Revenue was $46.72 billion, up 41.2% in US dollars, and net income rose 68.7%, a record for the sixth straight quarter. High-performance computing, the category that includes AI accelerators, made up 68% of sales. Chief Financial Officer Wendell Huang said the quarter was supported by strong demand for the company’s leading-edge process technologies.
Management sees more of the same ahead. TSMC guided fourth-quarter revenue above the third quarter’s level, and its newest process technology, 2-nanometer, is already part of the sales mix, with Huang calling the ramp steep. Customers moving to each new generation of chips is how the bulls expect the growth to last through the decade.
Our latest analysis on Taiwan Semiconductor Manufacturing (TSM) is available here: TSMC’s Profit Soars 69%, but Can its Next Chip Breakthrough Justify the Valuation?
4. Amazon (NASDAQ:AMZN)
Number of Hedge Fund Holders: 369
Market Cap: $2.90 trillion
Bill Ackman’s Pershing Square says Amazon “operates two of the world’s great, category-defining franchises,” online retail and Amazon Web Services, and has argued that AWS growth is speeding up on AI demand. Cathie Wood’s Ark Invest believes AWS can grow into a business with a trillion dollars a year in revenue, and points to shoppers who use Alexa spending noticeably more per order.
The latest quarter gave both something to cite. Sales at Amazon Web Services rose 39%, the cloud unit’s fastest growth in nearly five years, and the unit earned a wider profit margin than it did a year earlier. That helped lift Amazon’s operating margin to 13.9%, the highest in the company’s history. Amazon said the timing of Prime Day, which moved into the second quarter this year, held back its third-quarter sales growth.
The margin matters because Amazon is spending heavily to add computing capacity, and higher profit on the cloud side helps pay for that build-out. Chief Executive Officer Andy Jassy said AWS is projecting revenue growth above 40% in both 2027 and 2028, which would mean the speed-up is meant to last rather than fade after one good quarter.
Read our analysis on Amazon (AMZN) here: Amazon (AMZN) Trades at 24 Times Forward Earnings. Can Its Cash Engines Fund the Robotaxi Bet?
3. Alphabet (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 275
Market Cap: $3.54 trillion
Berkshire Hathaway, a firm known for holding stocks for years, has made Alphabet one of its largest holdings. Bill Ackman’s Pershing Square sold its entire stake in what he called a tactical reallocation into other holdings, but wrote, “We are very bullish long term on Alphabet.” The latest quarter gives both views something concrete.
Google Cloud revenue rose 103% to $30.7 billion, and Alphabet said sales of its own TPU computing systems were also a meaningful contributor. Chief Executive Officer Sundar Pichai said the cloud’s growth was powered by huge demand for the company’s AI infrastructure and AI solutions. The cloud backlog, which is revenue customers have contracted for but Alphabet has not yet recognized, stood at $561 billion. Operating income at the cloud unit more than tripled, and Alphabet expects TPU system sales to scale further in the fourth quarter.
The rest of the company is moving too. Pichai said the Gemini app has passed one billion monthly users. Search, the older business, kept growing too, with query growth at its highest in five years. To the bulls, chips, models and a huge user base together make the story hold.
You can read our analysis on Alphabet (GOOGL) here: Alphabet (GOOGL): Does Its Valuation Account for Waymo’s Potential?
2. Microsoft (NASDAQ:MSFT)
Number of Hedge Fund Holders: 273
Market Cap: $4.04 trillion
Bill Ackman’s Pershing Square disclosed a new Microsoft position, saying Microsoft 365 and Azure are two of the most valuable franchises in enterprise technology and together produce most of its profit. Pershing said it was able to buy near the market’s average valuation, and described such holdings as “some of the most dominant long-term compounding franchises.” Wedbush analyst Dan Ives calls Microsoft one of his favorite large-cap tech names to own over the coming years.
The cloud numbers give that view something solid to rest on. In the fiscal first quarter, Azure revenue rose 48%, and for the first time Microsoft reported the unit’s sales in dollars rather than only as a growth rate. Total revenue grew 19%, and operating income rose 21%, and the company said results exceeded its own expectations.
Chief Executive Officer Satya Nadella said customers are getting more capability, choice, control and cost efficiency across the whole stack. The bulls read that as proof Microsoft can sell AI to customers it already has, using the same relationships that built its software business. It also returned cash to shareholders through dividends and buybacks.
Our latest analysis on Microsoft (MSFT) is available here: Microsoft (MSFT): Can Security Bundles Generate More Profit per Customer?
1. Nvidia (NASDAQ:NVDA)
Number of Hedge Fund Holders: 285
Market Cap: $4.27 trillion
Gavin Baker, who runs Atreides Management, has owned Nvidia for about two decades and argues that its sales are limited by how many chips can be built, not by demand. Brad Gerstner, whose Altimeter Capital holds Nvidia as its largest position, has pointed to data center spending forecasts, saying “that’s not speculative, that’s purchase orders.” Cathie Wood’s Ark Invest keeps buying on dips, calling the stock a bargain given how fast earnings are growing.
The company’s last report may explain why. Revenue in the fiscal second quarter reached $96.2 billion, up 106% from a year earlier, with data center sales making up the vast majority. Nvidia guided the current quarter to about $108 billion, and said the outlook assumes no data center compute sales to China. Nvidia says it already holds purchase orders from every major hyperscaler, AI cloud and system maker.
The bulls care most about what comes after. Management gave a preliminary view that revenue for fiscal 2028 will grow about 70%, and described that outlook as limited by supply rather than demand. It also expects Vera Rubin, its next generation of systems, to start contributing meaningfully to data center sales this quarter.
Read our analysis on Nvidia (NVDA) here: NVIDIA (NVDA) Leverages AI Growth to Expand Its Autonomous Driving Opportunity
READ NEXT: Nvidia Is Becoming More Than a Chipmaker. Can it Sustain Its Exceptional Margins? and Nvidia vs. Microsoft: Is NVDA’s Explosive Growth Being Undervalued?
