Artificial Intelligence in 2026
Artificial intelligence (AI) continues to be a promising opportunity in 2026. According to IDC, AI is set to become a pivotal technology of the 21st century, potentially contributing a staggering $22 trillion to the global economy by 2030.
Even with the strong momentum fueling investment in this groundbreaking technology, many leading tech stocks are trading at surprisingly modest valuations when you consider their profitability and growth potential. If you have an extra $1,000, this might be a good time to think about a long-term investment plan. Here are two stocks worth considering.
Amazon
Amazon is primarily recognized as a top online retailer, but it’s also benefiting from the surging demand for AI. More companies are adopting cloud computing to utilize their own data for AI applications, and Amazon Web Services (AWS) remains a significant player in this space.
AWS saw impressive performance at the end of 2025, with revenue growth climbing from 20% the previous quarter to 24% year-over-year—the highest rate in three years.
What’s noteworthy is that Amazon is still having difficulty keeping up with demand, which might mean they’re retaining some profits. “Customers really want AWS for their core and AI workloads, and we’re monetizing capacity as quickly as we can deploy it,” said CEO Andy Jassy during the fourth-quarter earnings call.
This indicates that AWS growth could accelerate as more capacity comes online. This is significant for investors, as AWS accounted for 57% of Amazon’s operating profit last year, making its growth a crucial long-term driver for the stock.
Of course, competition from other cloud giants like Microsoft and Alphabet is a consideration. Nevertheless, Amazon presents an appealing value relative to its growth. With operating cash flow reaching $139 billion last year, its price-to-cash flow multiple is around 16, the lowest it’s been in over a decade.
Oracle
Oracle is also capitalizing on the increasing demand for cloud services. A leader in enterprise software, Oracle has built a reputation for reliable database management. Although it was late to fully embrace AI in the cloud, the company is now leveraging its extensive customer base to enhance its AI offerings and drive growth.
Recently, Oracle’s cloud revenue grew 34% year-over-year, with the cloud infrastructure segment—a key area for AI—experiencing an impressive 68% growth rate.
More businesses are selecting Oracle for their AI cloud solutions, largely due to its emphasis on security and high-performance computing. The tools Oracle provides are essential for companies aiming to build AI models with sensitive data, and its integration with existing database services makes it easier for current customers to transition.
Oracle’s remaining performance obligations, which represent revenue not yet recognized, surged 433% year-over-year to reach $523 billion—substantially higher than the trailing $61 billion in revenue.
However, there’s a risk that Oracle may not fulfill its outstanding commitments. Still, this concern seems to be reflected in its current valuation, with the stock trading at about 19 times anticipated earnings—while analysts project annual earnings growth of nearly 22% over the next few years. This positioning makes Oracle attractive among large-cap tech stocks at this moment.
