Despite global headwinds that rippled through financial markets, the US stock market has stayed resilient in 2025, ending the first three quarters with overall gains. The stock market has been volatile, but strong corporate earnings and the steady development of artificial intelligence (AI) have helped maintain optimism, especially in tech stocks. As the year draws to a close, investors are watching several stocks for 2026.
US Stock Market Performance in 2025
The markets opened for the new year with optimism as investors looked forward to the Trump administration. His outspoken support for crypto adoption raised a few worries, but they have proved unnecessary as the year progressed. However, Trump’s tariffs and trade wars with China, Mexico, Canada, and many other US trading partners heightened economic uncertainty.
Those worries are reflected in the markets, as data from TradingView indicates that the stock market briefly crashed before recovering, and then went through the cycle multiple times. Yet, as of Q3 2025 (year-to-date), the S&P 500, Nasdaq, and Dow Jones have gained 12.55%, 16.38%, and 8.46%, respectively.
Slower GDP growth, interest rates, corporate earnings, and sector/industry performance will impact the stock market in 2026. However, specific industries, particularly the tech sector, are expected to see impressive performance in 2026. Several factors will contribute to this, including increased investments in AI, automation, quantum computing, renewable energy, fintech, and biotech.
Seven Stocks to Watch in 2026
The following are some of the tech stocks expected to grow in 2026. These stocks are selected based on their revenue growth rate, earnings per share (EPS) growth, price-to-earnings (P/E) ratio, and technical confirmation, among other factors.
- NVIDIA Corp. (NVDA)
Nvidia has maintained its dominance in the AI chip (GPU) market over the years, and demand for its products and services continues to grow. For example, Nvidia will deliver over 200,000 AI chips following an agreement with Microsoft. They also recently announced a $100 billion investment in OpenAI. With a P/E of 51.07 and an EPS diluted (dil) growth of 64.96%, Nvidia is poised for more growth in 2026, after having an impressive year-over-year revenue growth of 56% in Q2 2025.
- Advanced Micro Devices (AMD)
AMD has had an impressive year to wrap up an even more remarkable decade, which has seen its shares return over 9,000%, and a year-to-date (YTD) increase of 95.11%. The increased demand for semiconductors is a significant reason the stock has gained value and will also influence its performance in 2026.
AMD has a multibillion-dollar deal with OpenAI to develop AI data centers and is expected to see increased activity following the launch of the proposed leveraged ETFs, which are anticipated to include AMD by year’s end. With a P/E of 137.34 and trading at around $238, Wedbush and HSBC have forecasted prices of $270 and $310, respectively, which could occur by 2026.
- Rivian (RIVN)
Rivian Automotive is a surprising pick, but the company is set to repeat Tesla’s growth by offering new and more affordable EV models. As it approaches a crucial growth phase, Rivian is expected to release more information about its R2, R3, and R3X models, which could lead to a surge in its stock price. At the current price of $13.41, Rivian has a 0.45% YTD return but is up 30.45% in the last year, with an EPS (TTM) of -$3.23.
- Microsoft (MSFT)
Microsoft has maintained steady performance in 2025, demonstrating positive momentum as demand for its services continues to increase. Microsoft is trading around $513 and has a YTD return of 20.66%; the EPS is $3.66 with a P/E (TTM) of 37.65%. As a major player in the AI and cloud infrastructure services, Microsoft is enhancing its AI infrastructure through strategic purchases in 2026. The company is also monetizing its products, especially the Copilot.
- Alphabet (GOOGL)
Alphabet’s comeback in 2025 demonstrates the company’s resilience in the face of global headwinds. The stock showed real appreciation after reaching 52-week lows and is trading around $251 with a 31.45% YTD return. The basic EPS is $9.47, while the net income is $100.12 billion. Alphabet is rolling out several investments, including Google’s $15 billion AI data center in India. These make the stock an exciting watch for 2026.
- Oracle (ORCL)
Oracle, surprisingly, has stood out in 2025 with a remarkable YTD rally of 80.17%. As of Q2 2025, the company had an estimated revenue of $14.9 billion and an EPS of 1.47. Deals with OpenAI, integration with Microsoft Azure, and AMD (to deploy 50,000 chips) will enable Oracle to surpass previous levels. Investors are right to be excited as Oracle leaders have said that 2026 is the year of “operationalizing AI.”
- Palantir Technologies (PLTR)
A stellar rise in 2025 saw Palantir surge over 147%, boosted by impressive earnings and rapid adoption of its AI offerings. The company reported a strong performance in the last quarter, with the diluted EPS reaching $0.16 and an increase in P/E (TTM) to 588.93. For 2026, Palantir is set to expand its client base and product offering. Although the technicals suggest a correction soon, Palantir is one to watch for 2026.
Notable mentions
Crowdstrike (CRWD), Adobe (ADBE), Amazon (AMZN), Intuitive Surgical (ISRG), Alibaba Group (BABA), Marvell Technology (MRVL), and Palo Alto Networks (PANW) are some notable growth stocks to watch in 2026. These stocks have something in common: AI-based tech that’s in line with global trends.
The massive investments that leading companies, such as Microsoft, Oracle, and Google, are making in AI and cloud computing indicate significant opportunities for investment in these areas. Companies in the sector are expected to have an interesting year in 2026.
What Could Push Tech Stocks Even Higher in 2026
The stock market is quietly gathering momentum for an explosive 2026, especially in the tech sector. While many of the stocks listed above have had impressive runs in 2025, they may be in for stronger runs next year. These could drive prices to new highs. However, several factors, including government policies, tariffs, and market demand, will play an essential role in their performance.