Within the remaining stretch of the yr, buyers typically search for indicators of the Santa Claus Rally, a seasonal sample whereby shares are inclined to rise within the interval from Dec. 24 to Jan. 5.
This sample has traditionally favored shares exhibiting robust momentum, enhancing fundamentals and elevated investor curiosity. Robust year-end earnings and vacation season gross sales typically elevate inventory costs, as buyers rush in and push valuations increased. This yr, nevertheless, a definite rally is more durable to identify as a result of markets have already posted robust beneficial properties. The S&P 500, one of many world’s most necessary inventory indexes, is up almost 20% to date this yr and has gained about 1.6% over the previous month.
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With AI infrastructure, cloud computing and GPU demand nonetheless dominating investor focus, robust know-how gamers seem well-positioned to journey any late-December upside into 2026. Moreover, as AI-driven knowledge progress accelerates and community infrastructure spending expands, storage and optical networking corporations equally emerge as late-year momentum candidates. On this context, listed here are three shares displaying momentum that would pop earlier than the yr ends — NVIDIA Company NVDA, Sandisk Company SNDK and Ciena Company CIEN.
High 3 Shares That Might Trip a Santa Rally
NVIDIA stays the spine of the worldwide AI build-out, and the inventory is among the many strongest performers available in the market. NVIDIA advantages from robust demand for AI and accelerated computing, pushed by generative AI and enormous language fashions working on its Hopper and Blackwell GPUs. Its wholesome money place helps progress investments, acquisitions and shareholder returns. Nevertheless, restricted Blackwell provide and rising AI system prices may weigh on margins.
The Zacks Consensus Estimate for current-year earnings has moved up 4.2% over the previous 60 days to $4.65. The inventory has gained 4.5% up to now month. NVDA presently flaunts a Zacks Rank #1(Robust Purchase). You’ll be able to see the whole listing of in the present day’s Zacks #1 Rank shares right here.
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Sandisk is using the storage momentum on AI knowledge progress. It’s rising as a robust year-end play on exploding knowledge creation, pushed by AI workloads, cloud growth and enterprise storage refresh cycles. As storage turns into a essential bottleneck in AI infrastructure, SNDK’s publicity to NAND flash and high-performance storage options positions it properly for renewed investor curiosity. Surging AI and knowledge heart investments are boosting demand for SNDK’s high-capacity, energy-efficient BiCS8 SSDs, that are scaling quickly and anticipated to dominate bit manufacturing by the tip of fiscal 2026.
The Zacks Consensus Estimate for SNDK’s fiscal 2026 earnings has been pegged at $12.59, indicating year-over-year progress of 321%, which has been revised upward 99.5% up to now 60 days. Prior to now month, its shares have surged 16.1%. SNDK presently boasts a Zacks Rank #1.
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As AI workloads improve knowledge visitors inside and between knowledge facilities, demand for optical networking is rising, benefiting Ciena. Its Cloud and Service Supplier clients are prioritizing community investments to assist AI-driven visitors progress, highlighting long-term alternatives for its Techniques and Interconnects companies. To capitalize on this, it’s focusing R&D on Coherent Optical Techniques, Interconnects, Coherent Routing and options like DCOM, whereas scaling again investments in residential broadband. CIEN expects its complete addressable market to succeed in $13 billion by 2028 at a CAGR of 26%. It faces near-term price pressures however expects margins to enhance by late fiscal 2026 by way of price cuts, pricing actions and provide rebalancing.
The Zacks Consensus Estimate for CIEN’s fiscal 2026 earnings has been pegged at $5.15, indicating year-over-year progress of 95%, which has been revised upward 18% up to now 60 days. The inventory has gained 20% up to now month. CIEN presently sports activities a Zacks Rank #1 and has a Worth Rating of B.
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Finish Observe
As all the time, Santa brings surprises, however robust momentum typically leads the way in which.
NVIDIA gives stability and dominance, Sandisk gives AI-driven knowledge storage leverage and Ciena delivers networking upside tied to the following part of AI infrastructure buildout. If seasonal tailwinds kick in, these names are technically positioned to learn, making them value watching intently as markets head into the ultimate stretch of 2025.
Zacks Naming High 10 Shares for 2026
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Ciena Company (CIEN) : Free Inventory Evaluation Report
NVIDIA Company (NVDA) : Free Inventory Evaluation Report
Sandisk Company (SNDK) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
