5 Best US Stocks to Invest In for Long Term Ali Ahmed Tue, November 10, 2026 at 11:48 AM EST 10 min read PS -12.59% NVDA -6.62% MU -4.20% AVGO +1.45% AMD -0.06% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
In this article, we will be looking at the 5 best American stocks to invest in for long term.
Recent economic and corporate developments have highlighted the importance of identifying businesses with durable growth opportunities. According to the US Bureau of Economic Analysis, the real gross domestic product (GDP) increased at an annual rate of 3.4% in the third quarter of 2026, accelerating from 2.2% in the previous quarter.
Investment and consumer spending were the main contributors to the increase. At the same time, recent corporate earnings have highlighted continued demand for cloud computing and AI infrastructure, which is creating more growth opportunities across different industries. Readers looking for opportunities in the AI space can also explore our list of the Best Performing AI Stocks of 2026.
In an investor letter dated November 2, 2026, Pershing Square founder Bill Ackman has argued that investors may be underappreciating the future revenue and earnings potential of hyperscalers.
Ackman believes hyperscalers' revenue growth could beat analyst expectations over the next several years. He also noted that investors are focusing too much on current capital expenditure without adequately accounting for the revenue and earnings these investments could generate.
However, investors should also be mindful of potential downside risks and may want to stay away from overblown stocks. See: Analysts Just Sounded the Alarm on These 10 Overhyped Stocks.
We shared the expanded list of the 10 Best US Stocks to Invest In for Long Term here. You can find the top 5 stocks below.
To compile our list of the best US stocks to invest in for long term, we looked for US companies with a compound annual growth rate (CAGR) in revenue exceeding 20% over the past 5 years. Next, we focused on the top stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey's Q2 2026 database of 1006 elite hedge funds. Finally, the best US stocks to invest in for long term were ranked in ascending order based on the number of hedge funds holding stakes in them at the end of the second quarter.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey's quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
5-Year Revenue CAGR: 25.51%
Number of Hedge Fund Holders: 152
Eli Lilly and Company (NYSE:LLY) delivered another strong quarter and reinforced its position in the fast growing diabetes and obesity treatment markets. On October 29, the company reported its Q3 financial results, reporting revenue of $24.4 billion, up 39% year-over-year. This growth was primarily driven by Mounjaro and Zepbound. Mounjaro revenue jumped 65% to reach $10.7 billion, while Zepbound sales surged 49% to reach $5.4 billion.
The company also lifted its full-year 2026 revenue guidance from $85 to $87 billion to $91 to $92 billion, which provides further support for the bullish thesis as it continues to benefit from demand for its leading weight-management and diabetes treatments.
However, investors may also want to take into account the pricing pressures underlying this growth. US revenue increased 34%, but realized prices fell 7%. International while international realized prices also declined 29%, mainly reflecting Mounjaro's inclusion on China's National Reimbursement Drug List. With revenue continuing to surge despite declining realized prices, the bigger question is whether Eli Lilly and Company can sustain its growth through higher sales volumes, as explored in our analysis of how the company grew revenue while prices fell.
Furthermore, quarterly revenue included approximately $900 million in benefits, primarily from $410 million of Jardiance milestones, with no further such milestones remaining. Eli Lilly and Company said that acquired in-process research and development (IPR&D) charges of $4.57 per share also weighed on reported earnings.
On the positive side, the company reported positive Phase 3 results for retatrutide against Ozempic 2 mg, potentially strengthening its future competitive position. While this supports the overall growth outlook, pricing pressure, earnings quality, and continued dependence on its obesity and diabetes franchises remain important factors that investors should also consider.
5-Year Revenue CAGR: 25.06%
Number of Hedge Fund Holders: 164
On November 3, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported record Q3 2026 revenue of $13.4 billion, up 45% year-over-year. The strongest contributor was its Data Center segment, where revenue increased 97% to reach $8.5 billion, driven by demand for EPYC processors and the launch of Instinct MI450 Series GPUs.
This solid performance reinforces Advanced Micro Devices, Inc.'s bullish investment thesis as it gains traction in AI infrastructure. The company also disclosed that Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are running models and workloads on the first AMD Helios rackscale solutions, highlighting growing adoption among major AI customers.
READ ALSO: AMD's $8.2 Billion AI Bet Comes With a $1 Trillion Valuation Problem.
However, investors should note that growth remains uneven across the business. Client and Gaming revenue fell 8% year-over-year to $3.7 billion and gaming revenue declined 40% to $773 million. Nevertheless, management expects Q4 revenue of approximately $17 billion, which would represent year-over-year growth of approximately 66% and a sequential increase of approximately 27%.
Reuters also reported that Advanced Micro Devices, Inc. expects revenue growth exceeding 80% in 2027, which is higher than the 77% growth analysts estimate, as per LSEG data. This suggests that management sees substantial room for further growth. The main question for investors may be whether Advanced Micro Devices, Inc. can sustain the momentum in its data center segment while improving performance across its weaker segments.
5-Year Revenue CAGR: 27.44%
Number of Hedge Fund Holders: 170
Broadcom Inc. (NASDAQ:AVGO) has become a major beneficiary of growing AI infrastructure spending, although the company's financial exposure to large AI customers warrants a more careful look.
On October 26, Reuters reported that Bank of America, Blackstone, Citi, and Morgan Stanley will provide $63 billion in financing to buy Broadcom Inc.'s AI chips and networking gear for Anthropic.
Deliveries are expected to begin in 2027 under a previously announced strategic computing capacity agreement. The transaction represents a significant potential source of demand for Broadcom Inc.'s AI semiconductor business, supporting the bullish thesis that its custom-chip and networking opportunities could extend well beyond current deployments. For a closer look at whether AVGO's revenue growth is sustainable or becoming increasingly dependent on AI spending, read our analysis.
However, the financing structure also presents some risks. The company is providing "residual value support" to lenders, which exposes it to potential losses if the underlying equipment declines in value. Moody's, which sees Broadcom Inc. as one of the strongest large tech companies, also cautioned that the risks would grow if multiple transactions were undertaken over a short period to meet the large funding requirements of frontier AI labs.
The risk is not merely theoretical. Broadcom Inc. believes that its five largest end customers accounted for approximately 50% of revenue for the three fiscal quarters ended August 2, 2026, up from 40% in the comparable prior-year period. This concentration makes the company increasingly sensitive to the spending decisions and financial health of a relatively small group of AI customers. The company also acknowledges the risk that customers might reduce or delay orders because of funding constraints or changes in AI infrastructure spending.
5-Year Revenue CAGR: 36.89%
Number of Hedge Fund Holders: 184
Micron Technology, Inc. (NASDAQ:MU) is seeing strong growth across its memory and storage business thanks to growing AI infrastructure demand. The company's latest results strengthen its long-term growth story.
In its fiscal Q4 2026 results, reported on September 30, Micron Technology, Inc. saw revenue, gross margin, and EPS each exceeding the high end of its guidance. The company posted revenue of $54.23 billion, up 379% from $11.32 billion a year earlier. Adjusted gross margin was 87% in the fiscal fourth quarter, up from 46% a year earlier. Despite exceptionally strong margins, MU is trading at a low earnings multiple.
Full-year revenue reached $133.19 billion, up 256% from $37.38 billion in fiscal 2025. Data center revenue was up fourfold. The company's revenue growth was broad-based, with all four business units recording higher sales year-over-year.
The bullish outlook also gets support from Micron Technology, Inc.'s guidance for fiscal Q1 2027. Management projects revenue of $61.5 billion, indicating continued momentum. The company said it is on track to deliver the fifth consecutive year of record market share in data center SSD in calendar 2026.
However, investors may need to keep in mind the cyclical nature of the memory industry. Micron Technology, Inc. also acknowledges that increased production capacity across the industry could create oversupply and put pressure on memory prices and margins. The company also faces intense competition from Samsung, SK Hynix, Sandisk, and other manufacturers, who may use aggressive pricing to obtain market share.
As a result, while AI-driven demand and strong customer commitments support Micron Technology, Inc.'s long-term growth prospects, sustaining its recent revenue growth could very well depend on pricing conditions and its ability to maintain technological competitiveness.
5-Year Revenue CAGR: 69.12%
Number of Hedge Fund Holders: 285
NVIDIA Corporation (NASDAQ:NVDA) is experiencing strong benefits from demand for AI infrastructure. The company's latest financial results highlighted the scale of its growth opportunities.
For the second quarter of fiscal 2027, ended July 26, 2026, NVIDIA Corporation reported revenue of $96.2 billion, up 106% year-over-year. Data Center revenue jumped 117% to reach $89 billion. This shows that the company continues to benefit from continued investment in AI infrastructure. Beyond data centers, NVDA is also looking to expand its autonomous driving ambitions, adding another potential growth driver.
NVIDIA Corporation also forecast third-quarter revenue of $108 billion, plus or minus 2%, indicating that management expects demand to remain strong. Recent developments support the long-term growth outlook. On October 27, NVIDIA Corporation announced an expanded collaboration with Meta, which plans to expand its NVIDIA Vera Rubin and Vera CPU deployment to support its AI infrastructure. Earlier, on October 21, the company also announced agreements with supply chain partners to expand global manufacturing capacity, including substrate agreements with IBIDEN, Samsung Electro-Mechanics, and Unimicron Technology Corporation to drive a 2.5x increase in capacity over the next three years. Jensen Huang, founder and CEO of the company, noted that "Demand is extraordinary. Capacity is the constraint."
However, investors should note that supply limitations and rising component costs could present some risks. During its latest earnings call, management indicated that memory costs had increased significantly. The magnitude of the price increase exceeded the management's prior expectations and is headed to be even higher into next year. As a result, NVIDIA Corporation expects GAAP and non-GAAP gross margins to be 74%, plus or minus 50 basis points, in Q3 before declining to between 71% and 72% in Q4. Additionally, the company has highlighted restrictions affecting its ability to sell chips in China. NVIDIA Corporation has also entered into substantial long-term supply and infrastructure commitments. These factors could impact profitability and expose the company to execution risks as it expands production.
While we acknowledge the risk and potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
This article is originally published at Insider Monkey.
