Top 5 US stocks to watch in 2026

What are US stocks?

Home to companies like Tesla, Amazon and Meta, the US stock market represents over $50 trillion in market capitalisation across exchanges like the NYSE and Nasdaq. These are shares of publicly traded companies that anyone can buy or sell.

Of course, strong past performance doesn't guarantee future results. Even market leaders can face significant price swings, as we'll explore when looking at specific companies and risk factors.

What is the biggest stock market in the world?

The NYSE is the largest stock market in the world by market cap, with US$28.8 trillion as of February 2026.¹  It has existed since 1792.

Advantages of US stocks

The US market offers access to companies reshaping entire industries. Rather than just broad market exposure, these five stocks represent specific opportunities that are harder to find elsewhere.

• Sector leadership in emerging technologies
  These companies are all leading the way in their sectors. Consider that three of the stocks on our list are biotechnology and/or pharmaceutical companies in the clinical trials phase

• Established market positions
  Sandisk is one of the world’s most established flash memory storage companies – a giant in its sector

• Scale and trading volumes
  Major US stocks typically see substantial daily trading activity, which can mean tighter spreads and the ability to enter or exit positions without significantly affecting share prices

• Accessible through multiple methods
  You can trade these stocks through CFDs for flexibility or own them, depending on your trading approach and risk tolerance

Risks of US stocks

These US companies come with specific considerations that traders should understand.

• Price volatility
  Relmada’s six-month stock price increase is 518.10%, but as of the year to date, it’s decreased 17.92%²

• Sector dependencies
  All of these companies are heavily reliant on tech advancements and trends

• Growth valuations
  Many of these stocks trade on future potential rather than current earnings. If growth expectations aren't met, stock price reactions can be significant

• Currency exposure
  Trading US stocks from the UAE involves AED/USD conversion, adding currency fluctuation to your trading considerations

Top 5 US stocks to watch in 2026

We’ve selected these stocks based on a number of factors, such as how well their stock price has performed this year, as well as:

• Their growth potential
• Innovation in their sector

 Overview of the US stocks in this article

Of the five US stocks listed in this article, all of them are available to trade with us via CFDs and through stock trading.

All figures are accurate as of 24 February 2026.

1. Terns Pharmaceuticals Inc (Nasdaq: TERN)

Industry: Biotechnology

Market cap: US$4.34 billion³

Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing treatments for serious diseases, including metabolic disorders and cancer. Its research pipeline includes therapies targeting conditions such as obesity, liver disease and oncology indications.

Rather than generating revenue from approved products, Terns is primarily in the research and development (R&D) phase, meaning its valuation is closely linked to clinical trial progress and regulatory milestones.

Like many smaller biotech firms, it has reacted strongly to updates around trial data, investor sentiment toward the healthcare sector and broader market risk appetite. Periods of optimism around obesity and metabolic drug development have supported upward moves.

This dynamic can appeal to CFD traders who seek short-term price movements driven by news flow. Clinical-stage biotech stocks often experience sharp reactions to announcements, creating active trading conditions.

At the same time, longer-term stock traders who believe in the commercial potential of next-generation metabolic therapies may view Terns as a high-risk, high-reward opportunity tied to innovation in drug development.

Highlights:

• As with many early-stage biotech companies, progress is measured in milestones rather than steady earnings growth, which shapes how the market responds to each update
• The company’s stock price has increased by 464.36% over the past six months⁴

2. Relmada Therapeutics Inc (Nasdaq: RLMD)

Industry: Pharmaceuticals

Market cap: US$295.53 million⁵

Relmada Therapeutics is another clinical stage company on our list. It’s focused on developing treatments for central nervous system disorders, and its research has centred on innovative approaches to conditions such as major depressive disorder and other neurological illnesses.

By targeting areas of high unmet medical need, Relmada aims to differentiate itself in a competitive pharmaceutical landscape.

During the past six months, Relmada’s share price has experienced notable swings. Biotechnology stocks in the development phase are particularly sensitive to trial results, funding updates and strategic reviews. Shifts in expectations around its lead drug candidates have influenced trading patterns, leading to periods of both sharp gains and declines.

For CFD traders, this type of volatility can present short-term opportunities, as price movements often follow company announcements or changes in broader healthcare sentiment. The stock’s responsiveness to news flow makes it one to watch during periods of heightened sector activity.

For stock traders with a longer horizon, the company represents exposure to innovation in mental health treatments, though outcomes remain dependent on clinical success and regulatory approval.

Highlights:

• Relmada sits firmly in the higher-risk category of US healthcare stocks, where progress in research can significantly reshape valuation expectations
• Its stock price has grown by 518.10% over the past six months⁶

3. AXT Inc (Nasdaq: AXTI)

Industry: Electronic production equipment

Market cap: US$1.57 billion⁷

AXT is a semiconductor materials company that manufactures compound semiconductor substrates. These materials are used in products such as lasers, LEDs, wireless communication devices and fibre-optic equipment. Unlike companies that design finished chips, AXT focuses on producing the specialised wafers that underpin advanced electronic and photonic devices.

In the past six months, AXT’s share price has shown fluctuating momentum. Semiconductor stocks have been influenced by shifting expectations around global demand, supply chain dynamics and capital spending in technology industries.

Improvements in sentiment around communications infrastructure and data centre investment have supported periods of strength, while broader market uncertainty has weighed at times.

For stock traders, the company offers exposure to the foundational materials used in high-speed connectivity and advanced electronics, which are tied to long-term digitalisation trends.

For CFD traders, the semiconductor sector’s sensitivity to economic data, industry forecasts and geopolitical developments can create active price movements.

Highlights:

• Because AXT operates within a cyclical industry, its stock price often reflects changing expectations about global technology demand, making it a stock that responds quickly to shifts in market outlook
• Its stock price has jumped by 911.74% over the past six months⁸

4. Erasca Inc (Nasdaq: ERAS)

Industry: Pharmaceuticals

Market cap: US$4.03 billion⁹

Erasca is yet another clinical-stage biotechnology company on our list of US stocks to watch, with this one focused on precision oncology.

Its strategy centres on developing targeted therapies for patients with specific genetic mutations linked to cancer. By using advanced molecular research, Erasca aims to deliver personalised treatments designed to address defined tumour pathways.

As with many oncology-focused biotech firms, the stock reacts strongly to updates on clinical trial enrolment, early-stage data releases and funding developments. Investor appetite for innovative cancer treatments has supported rallies, while cautious sentiment around trial risk has led to some declines.

This pattern of movement makes Erasca particularly relevant for CFD traders seeking exposure to event-driven price action. News related to trial progress or partnerships can quickly alter market expectations.

For stock traders, the company represents participation in the growing field of targeted cancer therapies, though progress depends heavily on scientific outcomes and regulatory milestones.

Highlights:

• The oncology space remains highly competitive, but successful development of precision treatments can significantly reshape a company’s growth trajectory, which explains the market’s sensitivity to each update
• The company’s stock price has grown by 718.87% over the past six months¹⁰

5. Sandisk Corporation (Nasdaq: SNDK)

Industry: Computer peripherals

Market cap: US$98.37 billion¹¹

Sandisk Corporation is best known for designing and manufacturing flash memory storage solutions. Its products include solid-state drives and memory cards used in consumer electronics, enterprise systems and data centres. As demand for data storage continues to rise, driven by cloud computing, AI and digital media, flash memory remains a core component of modern infrastructure.

In the past six months, SanDisk’s stock price has reflected changing conditions in the memory chip market. The semiconductor industry is cyclical, and pricing trends, inventory levels and demand forecasts can all influence valuations. Periods of improving outlook for data centre and enterprise storage have supported gains, while concerns around supply and pricing pressures have contributed to volatility.

For stock traders, SanDisk provides exposure to long-term growth in global data generation and storage needs. Expanding digital services and AI workloads require scalable and efficient memory solutions.

For CFD traders, the cyclical nature of the memory market can create opportunities as expectations shift around supply-demand balances. Industry updates, earnings guidance and macroeconomic signals often drive noticeable price reactions.

Highlights:

• SanDisk sits at the intersection of structural digital growth and short-term semiconductor cycles, shaping its appeal across different trading approaches
• Its stock price has increased by 1.31K% over the past six months¹²

How to trade US stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for US stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Stock trading

1. Open a stock trading account with IG UAE
2. Search for US stocks
3. Choose the stock you want to buy – try our stock screener
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about US stocks

Footnotes

1. NYSE, February 2026
2. TradingView, February 2026
3. TradingView, February 2026
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