The Nasdaq Composite index has hit a rough patch in 2026, losing 1.5% of its value as of this writing. The tech-laden index’s drop can primarily be attributed to external factors, mainly the Middle East crisis that has led to a spike in oil prices and has stoked fears of a recession.
As a result, investors have been rotating out of tech stocks. That’s not surprising, as the tech sector has been a driving force behind the broader stock market rally in recent years, primarily because of massive investments in artificial intelligence (AI) hardware that has supercharged the growth of several companies.
However, this isn’t the first time the sell-off in AI stocks has weighed on the Nasdaq Composite. The Nasdaq was on the cusp of entering bear market territory a year ago, as the market gauged the potential impact of the Trump administration’s tariffs. But it didn’t take long for tech stocks to stage a rally. In fact, the Nasdaq Composite rallied 31% between May and December 2025.
This is why the recent sell-off in tech shouldn’t dishearten savvy investors. There is ample evidence that tech stocks will continue to enjoy strong earnings growth this year, potentially sending the Nasdaq Composite on another bull run.
That’s precisely why it’s a good time to buy shares of Nebius Group (NBIS 1.35%) and Lam Research (LRCX 3.54%), two Nasdaq stocks that have defied the broader market’s weakness and seem poised to deliver phenomenal gains to investors this year.
Image source: The Motley Fool.
Nebius Group: A key player in the AI economy that’s poised to deliver phenomenal growth
Shares of neocloud provider Nebius have already soared 73% so far in 2026. It is easy to see why investors continue to have confidence in the stock despite the overall weakness in the tech sector.
Nebius is a key cog in the AI economy. It operates dedicated AI data centers used by hyperscalers and AI companies seeking cloud-based storage and compute services to run their AI workloads. However, Nebius is more than just a landlord renting out its AI data centers, which are equipped with Nvidia’s cutting-edge graphics processing units.
Today’s Change
(-1.35%) $-2.18
Current Price
$159.76
Key Data Points
Market Cap
$41B
Day’s Range
$156.53 – $162.00
52wk Range
$20.25 – $166.10
Volume
204K
Avg Vol
16M
Gross Margin
-765.63%
The company provides access to popular open-source AI models that enable customers to run various inference applications through its token factory. Nebius customers can also build and deploy AI agents, develop custom AI applications, and generate images using its full-stack infrastructure. Inference, the process of putting trained AI models to work in the real world, is poised to become the next big thing in AI.
Not surprisingly, demand for AI inference servers is expected to grow from $25 billion in 2024 to $133 billion in 2034. Nebius is already making the most of this opportunity. The company has landed a whopping $46 billion in deals with Meta Platforms and Microsoft over the next five years. That points toward a serious acceleration in its growth when we consider that it has clocked just under $530 million in revenue in the past year.
Analysts are forecasting more than a sixfold revenue increase this year, followed by another major jump in the next one.
NBIS Revenue Estimates for Current Fiscal Year data by YCharts
Assuming Nebius clocks $9.7 billion in revenue next year, in line with Wall Street’s expectations, and trades at just 8 times sales at that time, in line with the U.S. tech sector’s average sales multiple, its market cap could jump to $78 billion. That’s a potential jump of 110% from its current market cap, suggesting that this AI stock can keep soaring after an impressive start to 2026.
Lam Research: More upside is in store for this semiconductor equipment giant
Lam Research stock is up 54% in 2026. The company is right in the middle of the semiconductor boom, manufacturing and servicing the equipment used to fabricate chips. Its equipment is used by foundries and memory companies, which means that the excessive demand for both memory and logic chips — such as central processing units, graphics cards, and other AI accelerators — is a big tailwind for the company.
Today’s Change
(-3.54%) $-9.64
Current Price
$262.77
Key Data Points
Market Cap
$340B
Day’s Range
$261.32 – $267.95
52wk Range
$61.14 – $273.50
Volume
121K
Avg Vol
11M
Gross Margin
49.80%
Dividend Yield
0.37%
It’s estimated that the wafer and fabrication equipment market’s revenue could increase from $116 billion last year to $156 billion in 2027, according to industry association SEMI. However, the recent reports of capital expenditure increases by foundries and memory manufacturers indicate that the eventual spending could exceed expectations.
Micron Technology, for instance, is forecasting more than $25 billion in capital expenditures this fiscal year, nearly double the $13.8 billion it spent in the previous fiscal year. Importantly, Micron expects its capex to “step up meaningfully” next year. Samsung, on the other hand, recently noted that it will spend a record $73 billion to expand its chip capacity this year, up by 22% from last year, as it rushes to meet AI-fueled demand.
Lam Research has exceeded analysts’ earnings expectations in each of the past four quarters, explaining the remarkable rally in this semiconductor stock over the past year. Importantly, the AI boom has brought about a significant turnaround in its financial fortunes over the past couple of years.
LRCX Revenue (TTM) data by YCharts
The billions of dollars being spent on semiconductor equipment to build more AI infrastructure should ensure Lam’s upward revenue and earnings trajectory continues. This approach should ideally translate into more stock price upside. Lam Research has a 12-month median price target of $285, suggesting just 8% gains from current levels.
But as the following chart suggests, Lam’s earnings are poised to keep growing at a solid pace in the next two years as well.
LRCX EPS Estimates for Current Fiscal Year data by YCharts
So,this Nasdaq stock can sustain its rally beyond 2026, which is why growth-oriented investors looking to capitalize on the AI supercycle can consider buying it right away.
