Although it might not really feel prefer it amid latest issues surrounding know-how, notably 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 beneficial properties.
And in regards to the all-star performers, three shares that sport the highly-coveted Zacks Rank #1 (Sturdy Purchase), SanDisk SNDK, Western Digital WDC, and Teradyne TER replicate the highest three hottest S&P 500 shares in 2026. What’s been driving the positivity?
SanDisk Soars
SanDisk shares have been melting greater 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.
Under 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 information 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 Greatest?
WDC shares impressively mirrored certainly one of 2025’s top-performing S&P 500 shares as properly, with the contemporary yr already trying brilliant once more. Western Digital gives scalable, sustainable know-how for hyperscalers, enterprises, and cloud suppliers, offering cutting-edge innovation that’s anticipated to drive the subsequent era of AI-driven information workloads.
Up practically 70%, the inventory has been red-hot within the contemporary yr, underpinned by favorable quarterly outcomes which have revealed a large alternative for the corporate.
Picture Supply: Zacks Funding Analysis
The corporate’s cash-generating talents have seen a pleasant enhance because of the setting, 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 Greater
Teradyne manufactures tools utilized by different firms to check chips. Unsurprisingly, the fastest-growing section right here is chips for AI information 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 awesome yr thus far, notably 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. Current quarterly outcomes got here in above the high-end of earlier steering, additional explaining the positivity behind shares within the new yr.
Picture Supply: Zacks Funding Analysis
Backside Line
Whereas pockets of the broader Expertise sector, notably 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 instantly or not directly from the AI demand setting.
Notably, all three shares sport the highly-coveted Zacks Rank #1 (Sturdy Purchase).
Free Report: Taking advantage 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 big beneficial properties.
However the rocket journey within the “first wave” of AI shares could 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 firms.
Zacks’ AI Growth 2.0: The Second Wave report reveals 4 under-the-radar firms 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 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.
