University of Kwazulu-Natal

Qoshe 3 Best Growth Stocks To Buy In 2026 Peter Cohan

Bonisiwe Shabane
-
qoshe 3 best growth stocks to buy in 2026 peter cohan

Since I first appeared on CNBC decades ago to discuss technology stocks, I have learned: When a company grows faster than investors expect and raises its growth forecast, its stock price usually goes up. That’s what we’re likely to see in 2026 with the AI chip designer Nvidia; another company called Iren, which is a former bitcoin miner turned AI cloud services provider; and quantum computing service provider... Here’s why buying shares of these growth stocks could help your portfolio — and the associated risks: A growth stock is a share of a company that is expected to grow at a faster rate than the average company in the market. These companies often reinvest their earnings back into the business to fund expansion, so they do not pay dividends. Investors buy growth stocks for their potential for high capital gains, based on the expectation that the company's future earnings will drive a significant increase in share price.

Prospects for growth stocks in 2026 are positive due to strong earnings expectations and continued investment in areas like artificial intelligence. Analysts anticipate growth for the broader market and specific sectors, supported by rising AI-related capital expenditures. However, volatility for companies without strong fundamentals remains a risk. NVIDIA, Iren, and IonQ look very well positioned with powerful exposure to AI, high-performance computing, and emerging technologies likely to accelerate in 2026. Growth stocks provide strong potential return opportunities but are associated with higher volatility, valuation risks, and increased sensitivities to economic conditions. Other high-upside candidates such as Palantir, AMD, Broadcom, and JPMorgan can be good complements to add diversification to such a set of top picks.

Growth stocks pair greater risk with superior long-term returns. Strong earnings forecasts, with increasing investment in areas such as artificial intelligence, data infrastructure, and quantum technology, mean that the outlook for growth stocks in 2026 remains generally favorable. This can be a pretty volatile sector, however, particularly when valuations are stretched or fundamentals are unproven. Among the many emerging opportunities, NVIDIA stands out because of its rapid revenue acceleration and strategic position in high-growth industries. The following are the best growth stocks for 2026 with robust market demand. Economists around the world are expecting muted U.S.

economic growth in coming quarters, and some indicators suggest a mild recession is a possibility. It may become difficult for investors to find reliable growth stocks to buy if tariffs, inflation and policy uncertainty have a negative impact on consumers. Nevertheless, growth stocks have outperformed value stocks in 2025, and investors anticipate that trend will continue as the Federal Reserve cuts interest rates further. Here are 10 of CFRA analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years: High-end semiconductor maker Nvidia has been one of the most spectacular growth stories in the entire stock market in the past 15 years. Nvidia’s growth numbers have wowed Wall Street, especially for a company of Nvidia’s size.

Nvidia’s revenue grew 62% year over year in the fiscal third quarter, while net income grew 65%. Analyst Angelo Zino says Nvidia still has significant upside thanks to its edge device penetration, expanding global market and software opportunities. He projects 60% revenue growth in fiscal 2026 and 39% growth in 2027. CFRA has a “strong buy” rating and $270 price target for NVDA stock, which closed at $178.88 on Nov. 21. Broadcom is a diversified designer, developer and supplier of analog semiconductor devices./ Broadcom reported 43% revenue growth in fiscal 2024 and has maintained 22% growth as of the most recent quarter, including 63% growth...

Zino says Broadcom’s networking and application-specific integrated circuit （ASIC） businesses will make it a major winner from the AI infrastructure investing boom. He says the company’s custom silicon business will support its semiconductor sales over the next three years and projects 29% revenue growth in fiscal 2026. CFRA has a “buy” rating and $380 price target for AVGO stock, which closed at $340.20 on Nov. 21. Eli Lilly produces brand-name prescription drugs to treat a wide range of medical conditions, such as diabetes, cancer and neurological disorders. In the third quarter, Lilly reported 54% revenue growth, including impressive 109% revenue growth for diabetes and weight-loss drug Mounjaro.

Revenue from diabetes and weight-loss drug Zepbound also surged 185% in the quarter. Analyst Sel Hardy says Lilly is riding the GLP-1 weight-loss drug wave, and it also has an impressive development pipeline. Hardy projects 15.8% revenue growth in fiscal 2026. CFRA has a “buy” rating and $1,101 price target for LLY stock, which closed at $1,059.70 on Nov. 21. These three stocks look well-positioned to be winners next year.

With 2025 beginning to wind down, it's time for investors to start looking toward what could be the best stocks to buy for next year. Here are three stocks that have real potential to outperform in 2026 and beyond. Where Nvidia (NVDA +1.42%) goes, the market is likely to follow. The maker of graphics processing units (GPUs) has grown to become the largest company in the world and is the poster child of the artificial intelligence (AI) boom. Its chips are the backbone of AI data centers, and right now, there appears to be no let-up in AI infrastructure spending. Large language models (LLMs), such as OpenAI, as well as cloud computing companies and other tech giants have all committed to increasing their AI spending in the coming years, which bodes well for Nvidia.

The company has a tight grip on the GPU market, which involves the chips most commonly used to provide the muscle to train AI models and run inference. Nvidia's edge comes from its CUDA software platform, which is the platform on which most developers learned to program GPUs and on which most foundational AI code is written. With AI set to lead the market higher again in 2026, Nvidia is a stock to own. Looking for the best growth stocks to buy now as we head into 2026? AlphaProfit’s proven strategy identifies the top sectors for 2026 and the stocks most likely to outperform—driven by rigorous analysis, disciplined execution, and a performance record that consistently beats the market. In this guide, we reveal the best growth opportunities for 2026—including sector leaders and individual stock picks—designed to help you invest with confidence and outperform the S&P 500.

Preview our Premium Service or explore our selection methodology to see how we do it. The year 2025 has been favorable for U.S. stocks, despite persistent concerns over tariffs, inflation, and slowing growth. The S&P 500 (SPY) dropped over 4% in Q1 but rebounded in Q2 and Q3, climbing to a 14.4% year-to-date gain as of September 19—setting a strong foundation for identifying the best growth stocks... Market breadth remained narrow in early 2025, with investors favoring large-cap technology stocks while the Fed held rates steady. This concentration highlights the importance of sector selection—especially when identifying top sectors for 2026 with broadening participation.

By Q3, signs of labor market softness and political pressure raised expectations for rate cuts. As those prospects grew, the rally broadened—bringing small-cap stocks into play and reinforcing the case for growth stock rotation across sectors. Peter Cohan became a Forbes contributor in April 2011 and was named a senior contributor in September 2023. In 1994, he started a management consulting and venture capital firm (http://petercohan.com). He is an associate professor of management practice at Babson College where he teaches strategy and entrepreneurship (https://www.babson.edu/about/our-leaders-and-scholars/faculty-and-academic-divisions/faculty-profiles/peter-cohan.php). His 17th book -- published in July 2024 -- is "Brain Rush: How to Invest and Compete in the Real World of Generative AI." (https://rb.gy/b8hhbj).

He previously worked as a case team leader for Monitor Company, a consulting firm co-founded by HBS professor Michael Porter. Progress Software has beaten expectations and raised guidance for the last three quarters, so why is its stock down 36%? Is it a bargain? Meta’s use of Variable Interest Entities to fund a $27B data center off its balance sheet raises transparency concerns and recalls Enron’s accounting tactics. The top growth stock picks for 2026 include shares in companies leading the AI boom and benefiting from growth in quantum computing. Eli Lilly stock has risen 36% this year to reach a $1 trillion market capitalization—the first health care company to hit that milestone.

People Also Search

Since I First Appeared On CNBC Decades Ago To Discuss

Since I first appeared on CNBC decades ago to discuss technology stocks, I have learned: When a company grows faster than investors expect and raises its growth forecast, its stock price usually goes up. That’s what we’re likely to see in 2026 with the AI chip designer Nvidia; another company called Iren, which is a former bitcoin miner turned AI cloud services provider; and quantum computing serv...

Prospects For Growth Stocks In 2026 Are Positive Due To

Prospects for growth stocks in 2026 are positive due to strong earnings expectations and continued investment in areas like artificial intelligence. Analysts anticipate growth for the broader market and specific sectors, supported by rising AI-related capital expenditures. However, volatility for companies without strong fundamentals remains a risk. NVIDIA, Iren, and IonQ look very well positioned...

Growth Stocks Pair Greater Risk With Superior Long-term Returns. Strong

Growth stocks pair greater risk with superior long-term returns. Strong earnings forecasts, with increasing investment in areas such as artificial intelligence, data infrastructure, and quantum technology, mean that the outlook for growth stocks in 2026 remains generally favorable. This can be a pretty volatile sector, however, particularly when valuations are stretched or fundamentals are unprove...

Economic Growth In Coming Quarters, And Some Indicators Suggest A

economic growth in coming quarters, and some indicators suggest a mild recession is a possibility. It may become difficult for investors to find reliable growth stocks to buy if tariffs, inflation and policy uncertainty have a negative impact on consumers. Nevertheless, growth stocks have outperformed value stocks in 2025, and investors anticipate that trend will continue as the Federal Reserve cu...

Nvidia’s Revenue Grew 62% Year Over Year In The Fiscal

Nvidia’s revenue grew 62% year over year in the fiscal third quarter, while net income grew 65%. Analyst Angelo Zino says Nvidia still has significant upside thanks to its edge device penetration, expanding global market and software opportunities. He projects 60% revenue growth in fiscal 2026 and 39% growth in 2027. CFRA has a “strong buy” rating and $270 price target for NVDA stock, which closed...