Here are the stocks that could benefit the most from lower oil prices

Stocks that could gain big if oil prices continue to decline include Advanced Micro Devices and Datadog.

West Texas Intermediate crude oil prices have already fallen sharply this year, from around $80 a barrel in mid-January to around $68 today. Several factors have contributed to the decline, including President Donald Trump’s global tariff war and the decision by OPEC+ members to increase production.

According to some sources, which wrote on Thursday that oil prices are likely to remain low for now, the trend is unlikely to reverse. But while energy companies may take a hit, the firm believes stocks in some other sectors could actually gain big.

“In terms of broader market implications, the [short-term] decline in crude oil prices – and the potential stabilization at those levels – could serve as a tailwind for US equities,” the bank wrote. “Significant corrections in WTI prices typically correspond to periods of growth in earnings per share (EPS) and stock performance for a few (potentially illogical) sectors: the technology complex and the discretionary sector.”

Included in this note is a list of stocks that could perform better under lower oil prices, including the following:

Advanced Micro Devices shares have surged 30% this year, but the graphics processor maker may have more upside potential. HSBC upgraded its rating to “buy” from “hold” last week. Analyst Frank Lee’s price target of $200 per share, up from $100, is about 27% above Friday’s close.

“We upgrade to Buy as we believe the price premium is undervalued and there could be additional earnings growth driven by the launch of the MI400 series in 2026.” “We now expect that the growth in AI revenue for fiscal 2026 will lead to a higher valuation for AMD, which is not fully priced in by the market, despite the 14% increase in the share price since the AI Day event (June 12).”

Datadog, whose shares are up 1% this year, is another name that could gain big.

“After attending DASH in New York, where the atmosphere was at its peak with plenty of AI announcements, we’re here to say that we believe these turbulent times are behind us and this dog isn’t just hunting again, it’s feasting!”

Sources also pointed to Zscaler as a stock that could perform better in lower oil prices. The cybersecurity company’s shares have jumped 60% in 2025.

In June, Wells Fargo upgraded the stock from “equal weight” to “overweight.” Analyst Andrew Nowinski’s new price target of $385, up from $260, is about 33% above the stock’s current trading price.

As a catalyst, the analyst highlighted Zscaler’s strong momentum in the new and incremental sales business this fiscal year. Unplanned invoice growth should improve going forward, while planned invoices should become less of a drag next year.

“We believe this will provide the foundation for invoice growth of over 20% in fiscal year 2026 as these unplanned invoices become part of planned invoices.”