Although it could not really feel prefer it amid latest issues surrounding expertise, significantly in software program and another shares tied to the broader AI frenzy, many within the commerce are nonetheless crushing it within the new yr, delivering big-time positive factors.
And in regards to the all-star performers, three shares that sport the highly-coveted Zacks Rank #1 (Robust Purchase), SanDisk SNDK, Western Digital WDC, and Teradyne TER mirror the highest three hottest S&P 500 shares in 2026. What’s been driving the positivity?
SanDisk Soars
SanDisk shares have been melting increased in 2026 months as its function within the broader AI frenzy lastly comes into focus. The inventory is up greater than 160% within the new yr alone, by far reflecting one of many strongest strikes we’ve seen.
Beneath is a chart illustrating SNDK’s efficiency in 2026 relative to the broader Zacks Expertise sector.
Picture Supply: Zacks Funding Analysis
AI is driving an enormous surge in storage demand, which is the place SanDisk is available in. NAND costs are rising quickly, with AI knowledge facilities, cloud suppliers, and edge gadgets all needing extra high-speed storage.
The corporate’s income acceleration is clear in latest quarterly releases, with gross sales of $3.0 billion climbing 61% year-over-year all through its newest interval. Its present fiscal yr (ends in June) has additionally confirmed the favorable demand backdrop, with the present $14.1 billion estimate up a staggering 50% during the last yr.
Picture Supply: Zacks Funding Analysis
Can Western Digital Repeat because the Finest?
WDC shares impressively mirrored certainly one of 2025’s top-performing S&P 500 shares as effectively, with the recent yr already wanting brilliant once more. Western Digital gives scalable, sustainable expertise for hyperscalers, enterprises, and cloud suppliers, offering cutting-edge innovation that’s anticipated to drive the following era of AI-driven knowledge workloads.
Up practically 70%, the inventory has been red-hot within the recent yr, underpinned by favorable quarterly outcomes which have revealed an enormous alternative for the corporate.
Picture Supply: Zacks Funding Analysis
The corporate’s cash-generating talents have seen a pleasant enhance because of the atmosphere, with free money circulate of $653 million all through its newest interval up by a triple-digit 125%.
Picture Supply: Zacks Funding Analysis
It’s important to notice that Western Digital additionally holds roughly a 20% stake in SNDK.
Teradyne Gross sales Soften Increased
Teradyne manufactures gear utilized by different corporations to check chips. Unsurprisingly, the fastest-growing section right here is chips for AI knowledge facilities and accelerators, and extra complicated chips imply higher take a look at demand, with AI chips among the many most complicated proper now.
Up 60%, the inventory has loved an important yr thus far, significantly so relative to the Zacks Expertise sector, which is actually flat YTD.
Picture Supply: Zacks Funding Analysis
Teradyne’s gross sales development has been unbelievable over latest durations, as proven under. Latest quarterly outcomes got here in above the high-end of earlier steerage, additional explaining the positivity behind shares within the new yr.
Picture Supply: Zacks Funding Analysis
Backside Line
Whereas pockets of the broader Expertise sector, significantly software program, proceed to get hammered in 2026, all three above – SanDisk SNDK, Western Digital WDC, and Teradyne TER – haven’t seen hardly any negativity, with all three benefiting in an enormous approach both immediately or not directly from the AI demand atmosphere.
Notably, all three shares sport the highly-coveted Zacks Rank #1 (Robust Purchase).
Free Report: Making the most of the 2nd Wave of AI Explosion
The following section of the AI explosion is poised to create vital wealth for buyers, particularly those that get in early. It can add actually trillion of {dollars} to the economic system and revolutionize practically each a part of our lives.
Buyers who purchased shares like Nvidia on the proper time have had a shot at enormous positive factors.
However the rocket trip within the “first wave” of AI shares might quickly come to an finish. The sharp upward trajectory of those shares will start to degree off, leaving exponential development to a brand new wave of cutting-edge corporations.
Zacks’ AI Growth 2.0: The Second Wave report reveals 4 under-the-radar corporations that will quickly be shining stars of AI’s subsequent leap ahead.
Entry AI Growth 2.0 now, completely free >>
Western Digital Company (WDC) : Free Inventory Evaluation Report
Sandisk Company (SNDK) : Free Inventory Evaluation Report
Teradyne, Inc. (TER) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
