Top Stocks I'm Buying For Huge Growth In July 2026
Summary
Alex, an experienced electrical engineer and AI researcher, presents his methodology for selecting top stocks that capitalize on the ongoing AI revolution, aiming for significant returns without relying on luck. His investment philosophy centers on a 3 to 5-year buy-and-hold strategy, investing within his circle of competence, and maintaining accountability by locking in his stock picks for an entire year. He emphasizes a portfolio approach, where individual stocks are chosen to work synergistically.
Alex begins by advocating for an ETF as the foundation of any great portfolio, specifically recommending the Vanguard Information Technology ETF (VGT). He notes that VGT offers superior diversification and focus compared to the NASDAQ 100, holding over 300 companies primarily in hardware, semiconductors, system software, and applications, while avoiding non-AI sectors and potentially unprofitable large IPOs. VGT also boasts lower fees and a history of outperforming both the S&P 500 and NASDAQ 100.
His individual stock picks are deeply rooted in the AI ecosystem:
Alex emphasizes that his picks are interconnected, allowing him to benefit regardless of specific market shifts within the AI and semiconductor space.
Mentioned Stocks
Reasoning: Broadcom is highly rated by Alex for building custom AI chips for major companies like Google, Meta, OpenAI, and Anthropic, making it a direct competitor to Nvidia. Broadcom's AI chip revenue grew by 143% year-over-year to $10.8 billion last quarter, and the company is guiding for over $100 billion in AI chip revenue by the end of 2027.
Reasoning: Micron is a key player in high-bandwidth memory (HBM), crucial for AI chips, and is the only US-based producer among three global companies. Micron's memory is pre-sold through the end of 2027, indicating a worsening memory shortage. This gives Micron significant pricing power, as AI companies must pay up or fall behind due to HBM no longer being a cyclical commodity.
Reasoning: Alex is dollar-cost averaging into Meta Platforms because it trades at a low P/E (20x earnings) compared to other Magnificent 7 stocks. Meta is investing heavily ($125-$145 billion in capex this year) in AI infrastructure for its 3.5 billion daily active users across its apps. These aggressive investments are already yielding strong results, with ad impressions up 19%, average price per ad up 12%, and revenues up 33% year-over-year.
Reasoning: Nvidia is Alex's top stock, central to the AI revolution due to its chips and uncrackable CUDA software ecosystem. He notes Nvidia's stock is currently trading at a P/E ratio of 31, making it cheaper than at any point during the AI revolution or in the 3 years before ChatGPT. Nvidia's revenues have been accelerating, growing year-over-year by 55%, 62%, 73%, and 85% over the last four quarters, and Alex believes its entrenched hardware and software will prevent disruption by other GPU makers.
Reasoning: Palantir has been on Alex's list for three years due to its strong growth as a profitable pure-play AI software company. Its revenue grew by 85% year-over-year, and full-year guidance was raised, implying another 71% growth. US commercial revenue guidance is up 120% to $3.2 billion. Alex expects continued growth as Palantir is positioned to capture a meaningful slice of the global AI and software market, which is projected to almost 7x in the next 7 years.
Reasoning: TSMC is always on Alex's list because it manufactures over 90% of all advanced chips and around 70% of the world's chips by revenue, regardless of who designs them. TSMC's technological lead is so significant that it can set prices, as customers have no alternative for advanced chip production at scale.
Reasoning: Google is high on Alex's list due to its full-stack strategy for AI, owning chips (TPUs), data centers, cloud, Gemini models, and products. Google Cloud generates over $80 billion in annual revenue and has a backlog of almost half a trillion dollars. Google is confidently selling its TPUs to outside customers, including a deal to sell up to a million chips to Anthropic, showcasing its lead.
Reasoning: Vertiv is critical for AI data center infrastructure, having partnered with Nvidia to redesign power architecture for 800V DC and 1-megawatt racks. Vertiv uniquely sells integrated power and direct-to-chip liquid cooling as a single end-to-end architecture. Its backlog is growing by 250% year-over-year, the fastest in its history, driven by demand from gigawatt-scale AI factories.
Reasoning: Alex has been investing in Crowdstrike because cybersecurity is crucial with the expansion of AI infrastructure, which makes systems vulnerable to new cyberattacks. Crowdstrike's Falcon platform offers a comprehensive solution for cloud security. The global cloud security market is expected to more than triple in size over the next six years, and Alex anticipates even faster growth due to AI-enabled cyber threats, positioning Crowdstrike well to capture this growth.
Reasoning: Alex states he has been moving his money into the Vanguard Information Technology ETF (VGT). He recommends it as the foundation for a portfolio, noting it holds over 300 companies focused on hardware, semiconductors, system software, and applications. It avoids non-AI related companies and unprofitable large IPOs found in the NASDAQ 100. VGT also has lower fees than SPY and QQQ and has historically outperformed both indexes.
Reasoning: Alex states he owns Iron, which has over 4.5 gigawatts of secured power for AI data centers. Nvidia has a 5-year, $3.4 billion cloud contract with Iron and holds a warrant to buy 30 million shares at $70 per share, implying a 40% upside from its current price of $49. Microsoft also has a $9.7 billion deal. Iron's $3.4 billion annual recurring revenue target uses only 10% of its secured power, indicating substantial future growth capacity. Alex acknowledges the risk of raising capital for data center construction.