AI stocks are expected to continue influencing the market in 2026.
The trend in the stock market is undeniably centered on artificial intelligence (AI), and there are some promising stocks worth considering this January. Here’s a glance at three top AI stocks to think about buying this month.
1. Nvidia
Nvidia (NVDA +1.26%) is regarded as a leader in AI infrastructure. Its graphics processing units (GPUs) are key components in AI data centers. With cloud computing services, large-scale language model (LLM) developers, and other hyperscalers increasing their investments in AI infrastructure, Nvidia is well-placed for future growth.
The strength of Nvidia lies in the ecosystem built around its chips. Long before AI was a household term, the company smartly introduced its CUDA software platform to universities and research institutions. This initiative has resulted in many developers being trained on its platform, which is often the foundation for basic AI programming.
Nvidia’s recent acquisition of SchedMD enhances its software dominance, adding control over Slurm, a platform for managing GPUs. Plus, its unique interconnect system, NVLink, allows for seamless collaboration among chips, turning them into a highly efficient unit.
2. Broadcom
As companies seek to cut costs, many are looking toward Nvidia’s GPUs. Broadcom (AVGO +0.41%) specializes in designing custom AI chips. Being a key player in ASIC (application-specific integrated circuit) technology, Broadcom creates pre-programmed chips for specific tasks. While these chips may lack the versatility of GPUs, they offer notable performance and cost-effectiveness.
Broadcom’s collaboration with Alphabet involved the successful development of tensor processing units (TPUs), attracting other major clients like Meta Platform and OpenAI to its services. This is likely to lead to significant growth ahead.
Analysts at CitiGroup predict Broadcom’s AI revenue could exceed $50 billion in 2026 and even reach $100 billion by 2027, a sharp rise from $20.2 billion in 2025. This growth is impressive, particularly considering the projected 2027 figure surpasses Broadcom’s total revenue of $63.9 billion from the previous year.
Though Citi’s numbers could be on the conservative side, they don’t even account for contributions from Apple, with Anthropic planning to utilize $21 billion in Alphabet TPUs in 2026.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM +5.17%) is in a prime position to benefit from the rising demand for both GPUs and AI ASICs. The company essentially holds a monopoly on manufacturing advanced logic chips for clients, including Nvidia and Broadcom. Anticipating that demand for AI chips will surge at a mid-40% growth rate in the coming years, TSMC is set for a strong future.
TSMC is currently the sole foundry capable of producing smaller node chips efficiently and at scale. The term ‘node’ refers to the density of transistors within a chip, and designers are always looking to decrease node size for more powerful and energy-efficient chips.
In contrast, competitors such as Intel and Samsung have struggled with yielding smaller node chips. Nvidia’s recent decision to not proceed with a partnership with Intel after testing its technology is notable, while Samsung seems to be shifting focus towards high-bandwidth memory (HBM) solutions that don’t directly compete with TSMC’s offerings.
Given its status as the leading manufacturer for advanced chips, TSMC enjoys significant pricing power, having raised prices by over 15% since 2019. Reports suggest the company plans to continue price increases over the next four years beginning in 2026.
