2 Top Nasdaq Stocks to Buy Before They Skyrocket in 2026

Semiconductor Industry - TSMC plans to increase its 2026 capital expenditures by $13 billion, while Micron aims to raise its capex to $20 billion from just under $14 billion, indicating a significant rise in semiconductor equipment spending [1][2] - There is a current shortage of both logic and memory chips, which is expected to drive demand for chipmaking equipment, with SEMI projecting semiconductor equipment sales to rise to $145 billion in 2026 from $133 billion last year [2] - The semiconductor industry's revenue is projected to increase by nearly 31% this year, exceeding $1 billion, driven by strong demand for AI-specific semiconductors [3] Applied Materials - Shares of Applied Materials have surged by 72% in the past six months due to robust demand for chipmaking equipment [3] - The company's revenue for fiscal 2025 reached a record $28.4 billion, marking a 4% increase, with expectations for growth to accelerate in the upcoming fiscal year [7] - Applied Materials is currently trading at 9 times sales, which is in line with the U.S. technology sector's average, but could trade at a premium if it outperforms consensus estimates [8] SentinelOne - SentinelOne's share price fell 32% in 2025, but the current valuation at 4.6 times sales and 38.6 times forward earnings presents a buying opportunity [10][11] - The company has shown healthy revenue growth, with a 23% year-over-year increase to $259 million in Q3 of fiscal 2026, and a faster-growing remaining performance obligations (RPO) metric, which increased by 35% to $1.3 billion [14][15] - SentinelOne's acquisition of Observo AI for $225 million is expected to enhance its AI-powered threat detection capabilities, contributing to its revenue pipeline and margin improvement [12][13] AI Spending - Global AI spending is projected to reach $2.5 trillion this year, a nearly 44% increase from last year, with further anticipated growth of 32% in 2027 [4] - The Nasdaq Composite index has gained 111% over the past three years, driven by the technology sector's growth, particularly in AI adoption [5] - The AI-focused cybersecurity market is expected to nearly double in size this year to $51 billion, presenting significant opportunities for companies like SentinelOne [17]