Analysts Morgan Stanley and Bank of America recommend buying Applied Materials (AMAT) and Lam Research (LRCX) as both stocks surge over 150% in 2026

As the first half of 2026 concludes, the small-cap Russell 2000 index has emerged as the leading performer, rising nearly 22%. Other major indexes also showed positive results, with the Nasdaq 100 up almost 20% and the Dow Industrials advancing 8.9%. Key sectors driving this growth include Industrials and Technology, both up approximately 19% year to date.

Notable stock recommendations from analysts have yielded impressive returns; for instance, Applied Materials has surged 180%, while Lam Research and Hut8 have increased by 153% and 151%, respectively.

In contrast, Palantir Technologies has faced challenges, with its stock down 43% from its November high, despite a recent partnership with Nvidia aimed at enhancing AI capabilities for U.S. government agencies. The upcoming ADP jobs report is anticipated to show 110,000 new jobs, a decrease from the previous month, which could impact market sentiment.

Additionally, General Mills is set to report earnings, with its stock down 33% over the past year but offering a dividend yield of 7%. The energy sector is also under scrutiny, with gasoline prices averaging $3.8470 per gallon, and major oil companies like Chevron and Exxon Mobil seeing their shares decline by 23% from recent highs.

Overall, investors should remain vigilant as earnings reports and economic data are likely to influence market dynamics in the coming sessions

Stocks in this article

Company Price Change Change % AI
Lam Research LRCX.US 433.33 +22.42 +5.46% Buy
General Mills GIS.US 34.80 -1.58 -4.34% Buy
Applied Materials AMAT.US 723.00 +28.36 +4.08% Buy
Nvidia NVDA.US 200.09 +5.12 +2.63% Hold
Hut 8 HUT.US 115.45 -2.82 -2.38% Sell
Chevron CVX.US 165.61 -2.82 -1.67% Hold
Palantir Technologies PLTR.US 116.67 +0.97 +0.84% Sell
Exxon Mobil XOM.US 136.48 +0.44 +0.32% Hold

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