The Ultimate Stock Pick to Scoop Up Aggressively Ahead of the Nasdaq's 2026 Surge | The Motley Fool
Picture this: A tech powerhouse that's not just surviving 2025's rollercoaster ride, but gearing up to dominate as the Nasdaq vaults even higher in 2026. If you're chasing massive gains, this "Magnificent Seven" gem could be your ticket to riding the wave – but stick around, because the real intrigue lies in why it's poised to outperform everyone else.
Tech shares have shown remarkable staying power throughout 2025, as evidenced by the Nasdaq Composite index's 21% ascent so far this year. I describe this as staying power because the sector has faced intense pressure at various junctures, thanks to a mix of challenges that had investors scrambling.
From the looming impacts of the Trump administration's trade policies, like potential tariffs, to fears that the massive investments in artificial intelligence (AI) might inflate into an unsustainable bubble, there were moments when panic gripped the markets and selling intensified. Yet, the robust growth figures emerging from tech firms this year have consistently turned the tide, allowing them to shrug off these hurdles.
The silver lining? All that hefty spending on AI infrastructure is primed to propel stock markets upward for the next couple of years. Take JPMorgan's insights, for instance – they predict the S&P 500's average earnings growth could hover between 13% and 15% for at least the following two years, fueled by what's being dubbed the "AI supercycle." So, it's no stretch to envision Nasdaq-listed shares leaping higher as we enter 2026.
Let's zoom in on a standout Nasdaq player that's ideally positioned to capitalize on the broader market's momentum and generate substantial returns for savvy investors like you.
This tech behemoth is set to eclipse its industry peers in performance.
Apple (AAPL +0.53%) shares have surged dramatically recently, climbing a whopping 58% from their 52-week nadir back in early April. As one of the "Magnificent Seven" – a group of elite tech stocks including giants like Apple, Amazon, and others that have captivated investors with their market dominance – Apple's ascent stems from robust consumer interest in its newest iPhones and the steady uptick in its services ecosystem.
Today's Change
(0.53%) $1.45
Current Price
$273.81
For the fiscal year ending September 27, 2025, Apple wrapped up with $416.1 billion in total revenue, marking a 6.4% uptick from the previous year. Its earnings per share shot up by 23% to $7.46. Looking ahead, analysts forecast that its revenue could accelerate to nearly 9% growth this fiscal year, potentially reaching over $453.1 billion.
You might be scratching your head at how analysts remain optimistic about Apple's trajectory in a year when soaring costs for smartphone memory chips could drag down the entire industry. To put it simply, memory chip producers are prioritizing high-bandwidth memory (HBM) chips for data centers, reallocating resources away from standard smartphone components. This shift is creating shortages, and according to Counterpoint Research, it could drive smartphone prices up by about 7% next year, with global shipments possibly dipping by 2.1%.
Apple, though, is expected to buck this trend and keep growing. And it's not hard to see why. As the second-largest player in the worldwide smartphone arena, holding an 18.2% market share at the end of the third quarter, Apple wields significant scale and bargaining power. This allows it to secure better deals with suppliers. Plus, its entry-level iPhone starts at $599, comfortably above the average smartphone selling price of $465 – giving it room to absorb price hikes without losing its edge.
Pair that with the strong pull of its latest iPhone 17 lineup, outpacing last year's models due to an enormous base of users still rocking older devices, and it's clear Apple is on track to surpass the broader smartphone industry's performance in 2026.
Consider this eye-opening stat from Dan Ives at Wedbush: Over 315 million iPhones are at least four years old, while Apple is projected to ship 234 million units this year. That vast pool of upgrade-eligible customers suggests a significant spike in shipments could be on the horizon for 2026. And don't forget, Apple is rumored to launch a foldable smartphone next year – a bold step that could inject fresh energy into its sales.
But here's where it gets controversial: Is jumping into foldables a genius move or a risky gamble? The foldable phone segment is expected to expand by 30% in 2026, per IDC, so Apple's entry could significantly amplify its revenue beyond current estimates. For beginners, foldables are innovative devices that fold like a wallet, offering larger screens in compact forms – think bigger displays for watching videos or multitasking without the bulk.
Apple's stellar climb shows no signs of slowing in 2026
Currently, Apple trades at 9.8 times its annual sales – not exorbitant when stacked against the U.S. tech sector's broader price-to-sales ratio of 8.6. Crucially, it can justify this slight premium going forward, given its anticipated growth spurt.
Imagine if Apple's revenue climbs 10% next year to $458 billion, and it maintains a 10 times sales valuation. That could push its market capitalization to $4.6 trillion, a 14% jump from today. But with the growth drivers we've discussed – like its iPhone momentum and foldable innovation – Apple might easily exceed those market expectations, making aggressive buying of this Nasdaq stock a shrewd strategy right now.
And this is the part most people miss: While AI hype dominates headlines, Apple's diversified strengths in hardware and services might prove more resilient than pure AI plays. But what do you think – is Apple's premium worth it, or should investors pivot to riskier AI innovators? Share your views in the comments; I'd love to hear if you agree, disagree, or have a counterpoint on whether tariffs or bubbles could derail this tech titan!
