Investors are on the lookout for the Santa Claus Rally, a seasonal pattern where stocks typically rise from Dec. 24 to Jan. 5. However, this year, the rally is harder to spot as markets have already seen strong gains, with the S&P 500 up nearly 20% so far this year.

Strong technology players like NVIDIA, Sandisk, and Ciena are well-positioned to benefit from late-December momentum, driven by AI infrastructure, cloud computing, and GPU demand. NVIDIA, in particular, is a top performer in the market due to strong demand for AI and accelerated computing, supported by a healthy cash position.

Sandisk is capitalizing on AI data growth with its high-capacity storage solutions, while Ciena is seeing increased demand for optical networking as AI workloads drive data traffic growth. Both companies are expected to see significant year-over-year earnings growth and have seen their stock prices rise in the past month.

Looking ahead to 2026, Zacks Investment Research is naming its top 10 stock picks, with a history of outperforming the S&P 500. These stocks are carefully selected by Zacks analysts and will be released on January 5, offering investors the opportunity to get in early on potential high performers for the year.

Read more at Nasdaq: Santa Claus Rally Ahead? 3 Stocks That Could Pop Before 2025 Ends