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

Technology stocks have delivered a resilient performance in 2025, which is evident from the 21% jump in the Nasdaq Composite index this year as of this writing. I call the sector's performance resilient because tech stocks have been under stress at certain times this year owing to various factors. From the potential fallout of the Trump administration's tariffs to concerns about heavy artificial intelligence (AI) spending turning into a bubble, there have been times when investors have panicked and hit the sell button. However, the strong growth that tech companies have been reporting this year has helped them overcome the negatives. The good part is that the strong spending on AI infrastructure is set to drive the stock market higher over the next couple of years. According to JPMorgan, the S&P 500 index's average earnings growth could be between 13% and 15% for "at least the next two years," thanks to the "AI supercycle." As a result, it won't be surprising to see Nasdaq stocks jumping higher in the new year. Here's a closer look at an important Nasdaq stock that can ride the broader market's rally and deliver solid gains to investors. Image source: Getty Images. This tech giant could do better than the industry it operates in Apple ( AAPL +0.53%) stock has rallied impressively in recent months, jumping 58% since hitting a 52-week low in the first week of April. The "Magnificent Seven" stock's impressive rise can be attributed to the healthy demand for its latest iPhones and the improving traction of the services business. NASDAQ: AAPL Key Data Points Apple ended its latest fiscal year 2025 (ended on Sept. 27) with $416.1 billion in revenue, up by 6.4% from the prior year. Earnings increased by 23% from the prior year to $7.46 per share. Analysts are expecting its top-line growth to accelerate to almost 9% in the current fiscal year to just over $453.1 billion. You may be surprised to see that analysts are upbeat about Apple's prospects in a year when the high cost of smartphone memory chips is likely to weigh on the industry. Memory manufacturers are scrambling to meet the demand for high-bandwidth memory (HBM) chips deployed in data centers, which is why they are allocating more capacity to this niche. As a result, the shortage of smartphone memory chips could lead to a 7% increase in smartphone prices next year, according to Counterpoint Research. The research firm estimates that smartphone shipments could decline by 2.1% next year. Apple, however, is expected to grow despite these headwinds. It is easy to see why that's the case. Apple was the second-largest player in the global smartphone market with a share of 18.2% at the end of the third quarter, which means that it has both scale and purchasing power on its side. This gives Apple the ability to negotiate favorable prices with component suppliers. Additionally, the cheapest iPhone that Apple sells is priced at $599, which is higher than the average smartphone average selling...

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