History Says the Nasdaq Will Soar: 2 Brilliant IPO Stocks to Buy Before 2026, According to Wall Street

The Nasdaq Composite (NASDAQINDEX: ^IXIC) crashed earlier this year when President Trump shocked Wall Street with sweeping tariffs. But the index promptly bounced back into a new bull market and has since advanced 50%. However, history says the Nasdaq is headed much higher in the coming years. It has returned an average of 281% during bull markets since 1990.

Most Wall Street analysts see CoreWeave (NASDAQ: CRWV) and ServiceTitan (NASDAQ: TTAN) as undervalued. Both companies completed initial public offerings (IPOs) in the past year. Details are provided below:

• CoreWeave completed its IPO on March 28, 2025. The stock has since advanced 93%. The median target price of $130 per share implies 68% upside from its current share price of $77.
• ServiceTitan completed its IPO on Dec. 12, 2024. The stock has since declined 12%. The median target price of $140 per share implies 57% upside from its current share price of $89.

Here's what investors should know.

Image source: Getty Images.

1. CoreWeave

CoreWeave is a neocloud, sometimes called artificial intelligence (AI) cloud, an emerging class of cloud services providers that operate data centers purpose-built for AI workloads. Its platform generally offers better performance than traditional clouds, and CoreWeave is frequently the first to deploy the latest Nvidia GPUs due to its close relationship with the chipmaker.

Research company SemiAnalysis recently recognized CoreWeave as the technology leader in AI services, scoring its platform above other neoclouds like Nebius, and traditional clouds like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud Platform. "CoreWeave continues to set the benchmark for AI cloud performance by demonstrating strong technical execution and operational maturity," wrote analyst Dylan Patel.

CoreWeave reported solid third-quarter financial results. Revenue increased 134% to $1.3 billion amid strong demand for AI infrastructure. The company's GAAP loss improved to $0.22 per diluted share, better than $1.82 per diluted share in the previous year. And cash from operations more than doubled to $1.7 billion. Yet, the stock has fallen 27% since the report because the company lowered full-year revenue guidance.

However, guidance was changed because a partner fell behind schedule with a data center build, but the value of the contract itself was not impacted, meaning revenue was not lost but will instead be recognized in the future. That delay is disappointing, and underscores the challenges of operating in this industry, but I think the market overreacted to the news.

CoreWeave currently trades at 7.5 times sales, a significant discount to the average of 13 times sales since its March IPO. More importantly, the current price-to-sales (P/S) multiple is very reasonable for a company whose earnings are forecast to increase at 92% annually through 2027. Investors with a time horizon of at least three years should feel comfortable buying a position today.

2. ServiceTitan

ServiceTitan is a software company that helps commercial and residential contractors run their businesses. Its platform includes front-office tools for lead generation, scheduling, and dispatching, as well as field operations tools for crew management and equipment tracking. Its software has use cases across numerous trades, including electrical work, landscaping, plumbing, and roofing.

Unlike many competing products, ServiceTitan packs a broad range of functionality into a single user interface. Its platform also leans on artificial intelligence to automate demand forecasting, job summarization, crew dispatching, and other workflows, which help boost operational efficiency for contractors.

ServiceTitan reported encouraging second-quarter financial results. Transaction volume increased 19%, but revenue increased 25% to $242 million. That indicates the company's take rate is trending higher, meaning it is keeping a larger percentage of each dollar spent on its platform. Non-GAAP net income more than tripled to reach $33 million.

ServiceTitan currently trades at 9.3 times sales, the cheapest valuation since the company went public in December 2024. More importantly, the current P/S multiple is reasonable for a company whose revenue is forecast to increase at 15% annually through the fiscal year that ends in January 2028. I think ServiceTitan can deliver better returns than the overall market during the next three to five years.

Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends ServiceTitan and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.