These 3 Stocks Have Been the Hottest Buys on the Nasdaq-100 This Year, and Here's Why They Could Still Go Higher

Tech stocks continue to be hot buys on Wall Street due to artificial intelligence (AI) and all the opportunities that it is opening up for their businesses. Thus far in 2026, the Nasdaq Composite, which features many big names in tech, has risen by more than 10%, outpacing the S&P 500's 8% gain.

More specifically, there have been some significant gains from stocks on the Nasdaq-100 index, which features the largest stocks on the exchange. Sandisk (NASDAQ: SNDK), Micron Technology (NASDAQ: MU), and Marvell Technology (NASDAQ: MRVL) are all up more than 200% as of Tuesday's close and are the top performers on the index. And while their gains have been stellar, here's why they could still rise higher this year and over the long run.

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Sandisk

Shares of Sandisk have risen an incredible 594% this year, and it is the best-performing stock on the Nasdaq-100. It's a fairly new stock, having spun off from Western Digital early last year. Sandisk's focus on flash memory, which has been in high demand as a result of heightened investments in AI, has made it one of the most sought-after stocks to own, with retail investors anticipating continued robust demand.

At around $240 billion in market cap, Sandisk's valuation is not as high as that of other tech giants, which is a reason investors may still see more upside for the stock in the long run. In its most recent quarter, which ended on April 3, revenue of just under $6 billion was up a staggering 251% year over year.

Sandisk's business has been growing fast, and while the stock may be volatile given how quickly it has risen, it's also possible to rise higher as long as demand remains strong. The stock is trading at a forward price-to-earnings (P/E) multiple of 25, which arguably isn't all that high for a top growth stock, given the S&P 500 average is a multiple of 22.

Micron Technology

Although it's the second-best-performing stock in the Nasdaq-100, Micron has also been delivering incredible returns; as of the end of Tuesday, it was up 228%. Its memory products have also been in high demand, particularly for its high-bandwidth memory that is needed for AI chips. Business has been so strong that it has shifted focus to primarily serving major tech companies as they build out their AI infrastructure.

This year, amid the stock's ascent in value, it has joined the illustrious trillion-dollar club, now being among the most valuable tech companies in the world. In its most recent quarter, which ended Feb. 26, Micron's revenue came in at $23.9 billion, which rose 196% year over year. Meanwhile, net income of $13.8 billion surged by 771%.

With such tremendous bottom-line growth, the stock's valuation doesn't appear all that high, especially given the continued shortage of memory products. Its forward P/E is only nine. There is the longer-term risk that as more supply becomes available, demand will crumble. But with companies continuing to spend heavily on AI, that isn't happening anytime soon, which is why Micron may still rise higher. It's a bit of a risky play, but as companies continue to invest heavily in AI, Micron will remain well-positioned to benefit from those opportunities.

Marvell Technology

The third-best stock on the Nasdaq-100 this year has been chipmaker Marvell Technology. As of Tuesday's close, it was up 214%. Its market cap now sits at around $230 billion as it has benefited from a growing demand for custom chips.

The company's growth may not be as impressive as the other two tech companies on this list, but it is also accelerating due to AI. It recently reported earnings, and for the period ended May 2, net revenue of $2.4 billion was up 28% year over year. Marvell forecasts that its growth rate will rise to 35% for the current period and continue to accelerate in upcoming quarters, with management citing "exceptional AI-related bookings."

Nvidia CEO Jensen Huang recently said he believes Marvell could be a trillion-dollar company due to its strong growth opportunities. It's a huge endorsement for Marvell, which would suggest much more upside for the stock in the long run. Currently, it's the most expensive stock on this list, with a forward P/E of 66. But if Huang's prediction is correct, then there could still be far more upside left.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology, Micron Technology, Nvidia, and Western Digital. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.