11 Unstoppable Stocks to Buy According to Analysts

Page 1 of 3

AI stocks had a brutal week. Last Thursday, the S&P 500 fell 4.4%, its biggest one-day drop since the April 2025 tariff shock. The Dow Jones Industrial Average lost more than 1,800 points, and the Nasdaq Composite tumbled 5.5%. The slide erased the market’s gain from the day before, its best in three months. Stock markets around the world felt the pressure, and South Korea’s Kospi index fell 5.3%.

The Nasdaq slid into a correction, the term Wall Street uses for a drop of more than 10% from a recent peak. Volatility spiked as well. Wall Street’s fear gauge, the VIX, posted its biggest one-day jump in over two years, Futurum Equities chief market strategist Shay Boloor pointed out.

Data Center Worries Rattle Chip Stocks

Stocks tied to the buildout of AI data centers led the slide. Investors had cheered the midterm election results a day earlier, then turned anxious about what a Democratic Congress could mean for the spending that feeds those data centers. We covered the group’s earlier pullback in our list of oversold AI stocks that Wall Street analysts saw 50%+ upside in, published before the selloff.

Goldman Sachs estimates that about 45% of planned US data center capacity now faces possible restrictions, after newly elected state governors promised to stop or pause construction, Yahoo Finance reported.

AI stocks had already been swinging for months on worries that building more data centers may slow because borrowing has become so expensive. Last month, Baird tech strategist Ted Mortonson said the selloff is increasingly about who needs financing and what that financing costs. Chip stocks took the hardest hit, in their worst selloff since 2020, and about $3 trillion in stock market value vanished in a single session.

A Partial Rebound as Treasury Yields Stay High

Stocks recovered some ground. The S&P 500 and Nasdaq rebounded on Friday, and on Wednesday each climbed more than 1% as the semiconductor index jumped 7%, Reuters reported. Readers who follow the group can find more names in our list of the best semiconductor stocks to buy for the next decade.

Government bond yields remain a worry. The 10-year Treasury yield was hovering around 5.0% this week, a level that keeps pressure on stocks that are priced for fast growth. On Thursday, the Nasdaq slipped 0.4% as the 10-year yield rose to 5.09%, Yahoo Finance reported, as investors weighed the odds of more Federal Reserve rate hikes.

11 Unstoppable Stocks to Buy According to Analysts

Our Methodology

For this article, we used Finviz to screen for large-cap and mega-cap US-listed stocks with a Buy or better analyst rating, an average analyst price target at least 30% above the current share price, and a share price gain of more than 50% over the past year. We then picked the 11 stocks with the highest average upside potential, based on analysts’ average price target, and ranked them in ascending order, using data as of November 12, 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).

11 Unstoppable Stocks to Buy According to Analysts

11. Coherent (NYSE:COHR)

Average Upside Potential: 60%

Market Cap: $45.90 billion

1-Year Performance: 66.49%

Pro forma revenue grew 56% in the fiscal first quarter, and reported revenue was $2.37 billion, so Coherent’s management expects an even faster year ahead. Chief Executive Officer Jim Anderson said the company now expects pro forma revenue growth above 60% in fiscal 2027. Coherent makes the lasers and optical parts that let AI data centers move information as light instead of electricity, and those centers are its main source of growth.

The company is also turning that growth into earnings. Non-GAAP earnings per share grew faster than sales, and Anderson called the fiscal first quarter a strong start to the year. Chief Financial Officer Sherri Luther said the quarter delivered substantial operating leverage and durable gross margin expansion, driven by pricing and cost improvements. That gave management the confidence to raise its longer-term goal to a non-GAAP gross margin above 45% before the end of calendar 2028.

For the fiscal second quarter, Coherent guided to revenue of $2.55 billion to $2.75 billion, which would be another step up. How the price compares with that outlook is the subject of our analysis of whether Coherent is fairly valued.

10. Lumentum (NASDAQ:LITE)

Average Upside Potential: 69%

Market Cap: $56.61 billion

1-Year Performance: 175.13%

Lumentum makes the lasers and optical parts that carry data between AI servers, and its sales more than doubled over the year. Revenue was $1.26 billion in the fiscal first quarter, against $533.8 million a year earlier. Chief Executive Officer Michael Hurlston said growth came across all of its businesses, led by pump lasers and optical circuit switches.

Guidance points higher still. For the fiscal second quarter, Lumentum expects revenue of $1.575 billion to $1.625 billion, and it projects an operating margin that would be its highest yet.

Then came a takeover offer. Marvell agreed to acquire the company in an all-stock deal at a fixed ratio of 4.5 Marvell shares for each Lumentum share. The companies said that implied about $1,132 per share before talks were reported, and because payment is in stock, the value moves with Marvell’s shares. Lumentum holders would own about 33% of the combined company, and Marvell Chief Executive Officer Matt Murphy would lead it. Hurlston said the combination creates a category leader in AI connectivity, with long-term value well above what Lumentum could deliver alone. Demand that outruns supply is the theme of our analysis of whether Lumentum’s valuation can hold up.

9. Tower Semiconductor (NASDAQ:TSEM)

Average Upside Potential: 71%

Market Cap: $17.90 billion

1-Year Performance: 59.15%

Tower Semiconductor is entering “the strongest growth phase in our history,” Chief Executive Officer Russell Ellwanger said as it guided fourth-quarter revenue to $600 million, up 36% year over year. Tower runs factories that make specialty chips, and its silicon photonics process, which turns electrical signals into light for AI data centers, is where its growth is concentrated.

Ellwanger said demand for silicon photonics and silicon germanium chips is driving exceptional growth in its high-speed connectivity business. Tower is targeting an annualized silicon photonics revenue run rate of $1.1 billion in the fourth quarter, which he put at five times the business’s full-year revenue in 2025. He added that all tools for its 300-millimeter expansion in Japan have been ordered and scheduled, with full production starts targeted for the third quarter of 2027. Management expects fourth-quarter revenue to bring full-year 2026 sales to about $2 billion.

Profit is rising faster than sales. Third-quarter revenue grew 33% from a year earlier, while gross profit nearly doubled to $179 million from $93 million. Our look at whether Tower can ride the AI optical interconnect wave examines how far that opportunity could reach.

Page 1 of 3