3 Top-Ranked U.S. Behemoths Witnessing Initial Breakthrough in 2026

Wall Street has started 2026 on a positive note after an astonishing rally in the last three years. A large section of market participants is hopeful that this northward journey of U.S. stock markets will continue this year, too. 

Despite trade and tariff-related concerns along with global geopolitical uncertainties, the performance of the U.S. corporate sector remained rock solid. Robust GDP growth rate, a dwindling inflation and solid consumer expenditure will pave the way for the future. 

Several stocks have witnessed an initial breakthrough in 2026. Here we recommend three stocks with a top Zacks Rank that have seen double-digit returns year to date. These stocks are: Micron Technology Inc. MU, Interactive Brokers Group Inc. IBKR and Microchip Technology Inc. MCHP. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks year to date.

Micron Technology Inc.

Micron Technology has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.

The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM. MU is capitalizing on this trend with its leadership in DRAM technology and a strong product roadmap that includes HBM4, slated for volume production in 2026.

Micron’s diversification strategy is also bearing fruit. MU has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market toward resilient verticals such as automotive and enterprise IT.

As AI adoption accelerates, the demand for advanced memory solutions, such as DRAM and NAND is soaring. MU’s investments in next-generation DRAM and 3D NAND ensure that it remains competitive in delivering the performance needed for modern computing.

Micron has an expected revenue and earnings growth rate of 95.2% and more than 100%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% over the last seven days.

Interactive Brokers Group Inc.

Interactive Brokers Group’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, and enhance its emerging market customers and global footprint, along with relatively high rates, are expected to continue aiding revenues. 

IBKR’s efforts to develop proprietary software and enhance its emerging market customers and global footprint, along with relatively high rates and lower compensation expenses relative to net revenues, are expected to support its top-line growth. IBKR’s initiatives to expand its product suite and the reach of its services will bolster its market share.

Interactive Brokers Group has an expected revenue and earnings growth rate of 3.7% and 7.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.9% in the last seven days.

Microchip Technology Inc.

Microchip Technology benefits from growing AI investments. The company’s Gen 4 and Gen 5 data center products are witnessing strong sales growth. MCHP’s new products are expected to gain traction with the launch of the industry's first 3-nanometer-based PCIe Gen 6 switch that powers modern AI infrastructure. 

These switches offer double bandwidth, lower latency, advanced security and high-density AI connectivity for next-generation cloud and data center performance. The success of the restructuring plan also bodes well for MCHP’s prospects.

MCHP is one of the leading providers of 8-bit, 16-bit and 32-bit microcontrollers globally. The company’s AI coding assistant is aiding customers to achieve up to a 40% productivity improvement in programming Microchip’s microcontroller devices. 

The company is adding AI agents to the AI coding assistant that is expected to reduce time to market for its customers. Microchip has secured design wins in data center infrastructure, spanning AI acceleration, storage and network infrastructure with tier 1 cloud providers and enterprise leaders. 

MCHP has expanded connectivity, storage and compute offerings for AI and data center applications as well as intelligent power modules for AI at the edge. These factors are expected to drive top-line growth in the long term.

Microchip Technology has an expected revenue and earnings growth rate of 4.9% and 15.3%, respectively, for the current year (ending March 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% in the last seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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