The technology sector has hit some bumps in the road so far in 2026, but tech stocks have still outperformed the S&P 500 by a wide margin for more than a decade. Brief periods of tech sector weakness have been excellent buying opportunities in the past, and with the world still in the early innings of the artificial intelligence era, there’s good reason to believe tech stocks will outperform again in the future.
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However, some tech stock valuations have become bloated, raising fears of an AI bubble. Here are 10 of the best tech stocks to buy in 2026, according to CFRA analysts:
| Stock | Implied upside* |
| Nvidia Corp. (ticker: NVDA) | 40% |
| Apple Inc. (AAPL) | 22% |
| Microsoft Corp. (MSFT) | 21% |
| Broadcom Inc. (AVGO) | 28% |
| Micron Technology Inc. (MU) | 32% |
| Palantir Technologies Inc. (PLTR) | 35% |
| Advanced Micro Devices Inc. (AMD) | 35% |
| Applied Materials Inc. (AMAT) | 30% |
| International Business Machines Corp. (IBM) | 36% |
| KLA Corp. (KLAC) | 20% |
*From April 7 closing price, per CFRA analyst targets.
Nvidia Corp. (NVDA)
Nvidia designs and sells high-end graphics and video processing chips used for desktop and gaming personal computers, workstations and other advanced computing servers and AI engines. Nvidia has been the second-best-performing stock in the entire market in the past 30 years and it has generated a total return of more than 1,100% since the beginning of 2023. Analyst Angelo Zino says Nvidia’s edge device penetration, its expanding total addressable market and its opportunities in software and AI technology suggest plenty more upside ahead. CFRA has a “strong buy” rating and $250 price target for NVDA stock, which closed at $178.10 on April 7.
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Zino says Apple has several bullish catalysts ahead, including AI prospects, strong cash returns and a growing addressable market. He says Apple’s massive global ecosystem will continue to create value, and the iPhone 17 upgrade cycle demonstrates how Apple could generate positive momentum from an aging installed base of devices. In addition, Apple’s product pipeline has significant upside potential. CFRA has a “buy” rating and $310 price target for AAPL stock, which closed at $253.50 on April 7.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company that is best known for Windows, Office and Azure cloud services. Zino says Microsoft has AI opportunities throughout its product stack, including infrastructure, development services and applications. He says Microsoft can monetize generative AI technology via Copilot, cloud services, OpenAI partnerships and search business expansion and features. Outside of AI, Zino predicts further cloud adoption will help create scale efficiencies, and Microsoft’s gaming business will continue to grow. He forecasts at least 35% Azure sales growth through fiscal 2027. CFRA has a “strong buy” rating and $450 price target for MSFT stock, which closed at $372.29 on April 7.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom’s networking and application-specific integrated circuit (ASIC) businesses make the stock a core AI infrastructure technology investment. In fact, he projects Broadcom’s semiconductor revenue will triple to more than $100 billion by 2027. Zino says constant news of new multiyear supplier agreements with major tech companies underscores the value of Broadcom’s products and creates long-term financial visibility for investors. In addition, Broadcom’s impressive supply chain differentiates it from competitors and creates a wide moat that protects its business. CFRA has a “buy” rating and $428 price target for AVGO stock, which closed at $333.97 on April 7.
Micron Technology Inc. (MU)
Micron Technology specializes in semiconductor memory products, including DRAM and NAND flash memory. Zino says the current memory market growth cycle will continue through 2027, serving as a tailwind for Micron’s business and share price. He says enterprise AI spending and demand for high bandwidth memory (HBM) wafers will support memory prices and growth. Zino projects greater than 40% compound annual growth in the HBM market from 2025 to 2028. Like Broadcom, Zino says Micron’s long-term customer agreements provide financial visibility and reduce concerns about cyclicality. CFRA has a “buy” rating and $500 price target for MU stock, which closed at $377.58 on April 7.
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Palantir Technologies Inc. (PLTR)
Palantir is a big data company that builds software platforms that can analyze massive amounts of data using machine learning and AI technology. Palantir’s stock price is up more than 2,200% since the beginning of 2023, including a 93% gain in the past 12 months. However, Palantir’s 85.1 price-to-sales ratio is the highest in the entire S&P 500, making some investors understandably concerned about valuation. Nevertheless, analyst Janice Quek says Palantir’s margin expansion and accelerating growth across key metrics suggests its stock rally could resume. CFRA has a “buy” rating and $203 price target for PLTR stock, which closed at $150.07 on April 7.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up around 40x over the past decade. Zino says the launch of the AMD Instinct MI450X next-generation AI accelerator slated for release in late 2026 will help close the gap between AMD and AI semiconductor market leader Nvidia. In February 2026, AMD announced a multiyear deal to supply Meta Platforms with GPU units for AI data centers, a deal which Zino says demonstrates conviction in AMD’s chips and clarifies its financial outlook. CFRA has a “strong buy” rating and $300 price target for AMD stock, which closed at $221.53 on April 7.
Applied Materials Inc. (AMAT)
Applied Materials is the world’s leading producer of wafer fabrication equipment for the semiconductor industry. Analyst Brooks Idlet says Applied Materials’ leadership in leading-edge device production, particularly within DRAM and logic, will help the stock outperform. Idlet says the company’s 2026 sales growth guidance exceeded expectations and demonstrated how much of a boost AI demand has been for Applied Materials’ business. He says Applied Materials is very well positioned in the leading-edge logic, DRAM and advanced packaging markets and has outperformed in China despite U.S. export controls. CFRA has a “strong buy” rating and $461 price target for AMAT stock, which closed at $354.31 on April 7.
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. Idlet says IBM is one of the top two providers of generative AI consulting services, and he is bullish on the company’s broad-based exposure to AI across its product stack. He sees AI integration opportunities in IBM’s Red Hat enterprise software solutions, its watsonx data platform, its Granite enterprise models and its on-premises server platform. Idlet says IBM’s recent acquisitions of HashiCorp and Confluent help shore up the company’s end-to-end hybrid cloud and AI portfolio. CFRA has a “buy” rating and $333 price target for IBM stock, which closed at $245.07 on April 7.
KLA Corp. (KLAC)
KLA is a semiconductor equipment company that produces yield monitoring and process control systems. Idlet says KLA’s market-leading position in process control makes it a core beneficiary of AI-fueled leading-edge spending as chip manufacturing processes become increasingly complicated. In the longer term, Idlet says KLA should improve its diversification as logic fabs outside of industry leader Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) increase their capital expenditures and leading-edge production capabilities. He projects new fab openings will drive 20% revenue growth for KLA in fiscal 2027 and 2028. CFRA has a “buy” rating and $1,854 price target for KLAC stock, which closed at $1,548.85 on April 7.
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10 Best Tech Stocks to Buy for 2026 originally appeared on usnews.com
Update 04/08/26: This story was published at an earlier date and has been updated with new information.
