On December 16, Julian Emanuel, Senior Managing Director at Evercore ISI, shared insights into the equity market’s future, particularly in relation to artificial intelligence (AI). During a discussion about the market’s ability to continue its upward trajectory amid recent turbulence in AI infrastructure and software, Emanuel described the current market phase as a digestion period, characterized by temporary setbacks. He highlighted concerns regarding debt financing for extensive AI projects but maintained optimism about the accelerating adoption of AI technologies.
Despite the noted challenges, Emanuel pointed to consumer discretionary companies effectively leveraging AI to enhance their revenue and manage costs. He also expressed concerns about high valuations potentially leading to volatility in 2026, reminiscent of the fluctuations seen in 2025. Nevertheless, he noted the absence of significant economic obstacles that could typically disrupt a bull market, suggesting a resilient underlying economic stability.
In light of this outlook, a curated list of the ten best stocks for the next decade has been compiled, focusing on companies that exhibit strong growth potential.
Methodology for Stock Selection
To identify these promising stocks, analysts analyzed financial media reports and exchange-traded funds (ETFs). The selection process prioritized blue-chip and wide-moat stocks with an expected earnings per share (EPS) growth rate of at least 15% over the next three to five years. Stocks were ranked based on the number of hedge funds holding stakes as of the third quarter of 2025. This approach is informed by research indicating that mimicking top hedge fund stock picks can lead to market outperformance.
Top 10 Stocks for Long-Term Growth
1. **Symbotic Inc. (NASDAQ:SYM)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 30.00%
– **Number of Hedge Fund Holders:** 21
On December 3, TD Cowen raised its price target for Symbotic to $75 from $50, maintaining a Buy rating. Despite a recent earnings dip, the company reported a 26% revenue increase for fiscal year 2025 and is entering the healthcare sector with a significant new customer, Medline.
2. **Gilead Sciences Inc. (NASDAQ:GILD)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 22.55%
– **Number of Hedge Fund Holders:** 61
On December 12, Morgan Stanley increased its price target for Gilead to $151. The company announced positive results from its Phase 3 ARTISTRY-2 clinical trial, potentially offering a new HIV treatment, which underscores its longstanding innovation efforts.
3. **Quanta Services Inc. (NYSE:PWR)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 16.28%
– **Number of Hedge Fund Holders:** 73
Bernstein recently lowered its price target for Quanta Services to $428 but highlighted a recovery year in 2026. Analysts expect a resurgence in earnings as fiscal policies align to stimulate growth.
4. **ASML Holding (NASDAQ:ASML)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 17.66%
– **Number of Hedge Fund Holders:** 82
On December 10, Citi raised ASML’s price target to EUR 1,200. The company is positioned to benefit significantly from increasing demand in the semiconductor sector, driven by AI advancements.
5. **AbbVie Inc. (NYSE:ABBV)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 15.24%
– **Number of Hedge Fund Holders:** 93
AbbVie reported a revenue increase of approximately 9.10% year-over-year for Q3 2025, with significant contributions from its newer immunology treatments, reinforcing its market position.
6. **Lam Research Corporation (NASDAQ:LRCX)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 17.61%
– **Number of Hedge Fund Holders:** 93
UBS raised its price target on Lam Research to $200, reflecting confidence in its ability to benefit from increased spending in the semiconductor equipment sector.
7. **Micron Technology Inc. (NASDAQ:MU)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 47.78%
– **Number of Hedge Fund Holders:** 105
Micron’s price target was raised to $500 by Rosenblatt, with the company seen as a major benefactor of heightened demand for memory solutions driven by AI.
8. **Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 21.80%
– **Number of Hedge Fund Holders:** 194
Bernstein increased its price target on TSMC to $330, reflecting confidence in the company’s capacity expansions to meet rising demand for AI-related chips.
9. **Nvidia Corporation (NASDAQ:NVDA)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 37.36%
– **Number of Hedge Fund Holders:** 234
Analysts reaffirmed a Buy rating for Nvidia, raising its target to $275 amid expectations of strong demand for its AI chips and a potential easing of export restrictions to China.
10. **Alphabet Inc. (NASDAQ:GOOGL)**
– **EPS Forward Long-Term Growth (3-5 Year CAGR):** 15.36%
– **Number of Hedge Fund Holders:** 243
On December 22, BNP Paribas Exane maintained its Buy rating for Alphabet, which has recently acquired Intersect Power for $4.75 billion, enhancing its data center footprint to support AI growth.
Investors looking for long-term growth opportunities may find these stocks compelling as they navigate the evolving landscape influenced by AI and other technological advancements. The focus on companies with strong fundamentals and growth prospects provides a strategic avenue for capitalizing on market trends over the next decade.
