This year is witnessing remarkable advancements in artificial intelligence.
Looking ahead to 2026, it seems poised to be a robust year for the stock market, particularly with the uptick in spending on AI technologies. I’m convinced that there are some stocks that could potentially see significant gains by year-end. So, if you haven’t invested yet, you might find yourself wishing you had.
Here are five stocks I’d recommend looking into for 2026: Nvidia, Broadcom, Advanced Micro Devices (AMD), Amazon, and Alphabet (Google). The common thread here is AI infrastructure. We’re still in the early days of companies developing the necessary computing power for AI applications, and investing in these stocks could be a great opportunity.
AI computing hardware provider
I’ve categorized these stocks into two main sectors: AI computing hardware and cloud computing companies. It feels like a logical separation, but who knows? Each of these companies could venture into different areas if they really wanted to.
Nvidia stands out as a leader in AI computing. Their graphics processing units (GPUs) and the accompanying ecosystem are unmatched. There’s a solid reason Nvidia has sold out of its cloud GPU production; its popularity is bound to rise as more data centers are established.
AMD, the second choice for GPUs, might be getting a second chance as Nvidia’s production ramps up to maximum capacity. If AMD can capture some market share, AI hyperscalers might find their offerings comparably effective, which could lead to even more growth for AMD.
Broadcom has a different strategy when it comes to AI computing hardware. Rather than creating general-purpose compute units like GPUs, they collaborate directly with AI hyperscalers to develop specialized chips. These application-specific integrated circuits (ASICs) can outperform GPUs if set up correctly.
I think Broadcom could emerge as a major player in 2026 as more companies explore what it takes to create custom compute units tailored for AI tasks. But it’s important to note that these units are not replacements for GPUs; they complement them. Thus, all three companies present attractive investment opportunities, and it wouldn’t surprise me if they significantly outshine the market next year.
Cloud computing provider
Alphabet and Amazon are both in an intense competition within the AI landscape. Yet, while they do have thriving core businesses funding their AI ambitions, I want to focus on their cloud computing platforms which are actually reaping the benefits of scaling AI.
Many companies lack the resources or expertise to develop their own data centers for AI workloads. Often, they don’t need continuous computing power, so they turn to providers like Google Cloud and Amazon Web Services (AWS) for what they require. These two companies are likely to see rapid growth as more workloads come online. Actually, in the last quarter, Google Cloud experienced a 34% year-over-year increase in revenue, and AWS saw a 20% rise. These numbers clearly demonstrate the growing demand for accessible AI computing power.
I believe this upward trend will carry on into 2026 and might even accelerate as more computing power becomes available. Although Amazon and Alphabet are investing heavily in AI data centers, they should realize a significant return as they monetize these services through cloud computing.
