1 Top Stock to Buy Hand Over Fist Before the Nasdaq Soars Higher in 2026

2 hours ago 1

Harsh Chauhan, The Motley Fool

Sat, January 17, 2026 astatine 3:13 PM CST 5 min read

Arm Holdings' banal terms fell importantly successful the past 3 months contempt steadfast maturation successful gross and earnings.
The stock's driblet means that investors tin present bargain it astatine a comparatively charismatic guardant net multiple.
Arm's maturation volition travel from improving adoption of its AI-centric spot architecture, which could nonstop the banal soaring successful the agelong run.
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The banal marketplace is disconnected to a decent commencement successful the caller year. The S&P 500 scale is up 1.5% successful the archetypal 2 weeks of 2026, and determination is simply a bully accidental that the benchmark scale volition proceed to caput higher arsenic the twelvemonth progresses.

Goldman Sachs' analysts expect U.S. stocks to emergence for the 4th consecutive year, driven by a resilient economy, robust artificial quality (AI) infrastructure spending, and imaginable complaint cuts by the Federal Reserve. The concern bank's strategists expect a 12% appreciation successful the S&P 500 successful 2026. Tech stocks are apt to play a cardinal relation erstwhile again successful driving the banal marketplace rally this twelvemonth connected the backmost of continued maturation successful AI spending.

The concern slope estimates that ample hyperscalers accrued their superior spending by 70% past year. The bully portion is that these hyperscalers are expected to bump up their superior spending astatine steadfast double-digit rates successful 2026. This astir apt explains wherefore investors proceed to stay bullish astir the tech sector. The Nasdaq-100 Technology Sector scale has already gained 3% successful 2026, outperforming the S&P 500 truthful far.

It won't beryllium astonishing to spot tech stocks present bigger gains than the S&P 500 for the remainder of 2026, conscionable similar they person done successful the past year. That's wherefore it would beryllium a bully clip to instrumentality a person look astatine 1 specified tech banal -- Arm Holdings (NASDAQ: ARM) -- that tin capitalize connected the broader market's rally and present handsome gains to investors.

The acronym AI written connected a processor.

Arm Holdings has been nether unit successful caller months contempt posting awesome maturation successful gross and earnings. Shares of the British exertion institution fell substantially successful December 2025, driven by concerns astir its costly valuation and its quality to capitalize connected the AI semiconductor boom.

It is worthy noting that shares commercialized down 40% since hitting a 52-week precocious successful precocious October 2025. However, a person look astatine Arm's show and prospects volition marque it wide that its pullback could beryllium an accidental for investors looking to adhd a maturation banal to their portfolios.