Analysts are spotlighting ten stocks expected to experience significant growth by 2026, driven primarily by advancements in artificial intelligence (AI). According to Dan Ives from Wedbush Securities, the year 2026 is anticipated to mark an inflection point in the AI sector, particularly regarding the monetization of AI technologies. During an appearance on CNBC on December 20, 2025, Ives emphasized that the software side of AI is beginning to showcase its potential through various applications and products.
Ives previously stated that large-cap tech stocks, especially the so-called “Mag Seven,” could experience gains exceeding 20% in 2026. He further projected that stocks such as Microsoft and Google might rise by as much as 30% to 40%. Ives noted that over $3 trillion to $4 trillion is expected to be spent in the next few years, signaling a robust growth phase for the AI market. He views the recent sell-off in prominent tech stocks as an opportunity for investors.
Methodology for Stock Selection
To identify the ten stocks poised for robust performance, a combination of the Finviz stock screener, data from CNN, and insights from Insider Monkey’s Q3 2025 hedge fund database were utilized. The screening focused on stocks with more than 50% upside potential. The stocks were then ranked based on the number of hedge fund holders, providing insight into market sentiment among institutional investors.
Investors often pay close attention to stocks favored by hedge funds, as research indicates that mimicking the top picks of leading hedge funds can lead to outperformance in the market. The quarterly newsletter that tracks stock selections has reportedly returned 427.7% since May 2014, outperforming its benchmark by 264 percentage points.
Top 10 Stocks Expected to Surge
1. **BioNTech SE (NASDAQ:BNTX)**
– **Analyst Upside Potential:** 53.64%
– **Number of Hedge Fund Holders:** 24
BioNTech recently finalized its acquisition of CureVac N.V., enhancing its oncology and infectious disease pipeline. Analysts maintain a bullish outlook, citing strong interim trial results for a new treatment targeting triple-negative breast cancer.
2. **IonQ, Inc. (NYSE:IONQ)**
– **Analyst Upside Potential:** 50.58%
– **Number of Hedge Fund Holders:** 30
IonQ announced an expanded partnership with QuantumBasel, valued at over $60 million. Analysts have initiated coverage with positive ratings, highlighting a growing sales pipeline for its quantum computing technologies.
3. **Credo Technology Group Holding Ltd (NASDAQ:CRDO)**
– **Analyst Upside Potential:** 53.20%
– **Number of Hedge Fund Holders:** 56
Despite a recent decline in stock price, analysts remain optimistic about Credo’s fiscal Q2 2026 performance, with revenue increasing by 272.08% year-over-year.
4. **Nebius Group N.V. (NASDAQ:NBIS)**
– **Analyst Upside Potential:** 73.26%
– **Number of Hedge Fund Holders:** 65
Nebius launched its AI Cloud 3.1, leveraging advanced NVIDIA technology to enhance performance and security. The upgrades position the company favorably in the biotech and SaaS markets.
5. **Core Scientific Inc. (NASDAQ:CORZ)**
– **Analyst Upside Potential:** 69.87%
– **Number of Hedge Fund Holders:** 68
Analysts expect significant revenue growth for Core Scientific, driven by its digital asset mining infrastructure. The company is poised for further expansion in high-performance computing.
6. **Coinbase Global, Inc. (NASDAQ:COIN)**
– **Analyst Upside Potential:** 59.11%
– **Number of Hedge Fund Holders:** 73
Coinbase is diversifying its offerings beyond cryptocurrency trading, although analysts express caution about the execution of its strategy amid a changing market landscape.
7. **Coupang, Inc. (NYSE:CPNG)**
– **Analyst Upside Potential:** 57.33%
– **Number of Hedge Fund Holders:** 83
Following a significant data breach affecting millions of users, Coupang’s stock has been impacted. Despite this, analysts maintain a positive long-term outlook.
8. **Roblox Corporation (NYSE:RBLX)**
– **Analyst Upside Potential:** 83.06%
– **Number of Hedge Fund Holders:** 90
Roblox faces regulatory challenges in Russia but has shown willingness to adapt to local laws. Analysts remain mixed on the stock, with significant upside potential noted.
9. **Sea Limited (NYSE:SE)**
– **Analyst Upside Potential:** 60.70%
– **Number of Hedge Fund Holders:** 102
Sea Limited is expected to continue its strong performance in the consumer internet sector, with a recent partnership with OpenAI enhancing its AI capabilities.
10. **Oracle Corporation (NYSE:ORCL)**
– **Analyst Upside Potential:** 53.67%
– **Number of Hedge Fund Holders:** 122
Oracle’s potential partnership with TikTok is anticipated to bolster its cloud infrastructure revenue significantly, addressing concerns about customer diversification.
Investors are advised to consider these stocks carefully as market conditions evolve. The insights provided by analysts signal a promising outlook for companies that effectively leverage AI advancements and position themselves strategically in their respective markets.
