Key Points
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Nvidia will continue to capitalize on massive AI spending.
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Taiwan Semiconductor Manufacturing will benefit from being a neutral player in the AI sector.
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Nebius Group expects monster growth in the year ahead.
- 10 stocks we like better than Nvidia ›
Finding the best artificial intelligence (AI) stocks for 2026 isn’t as hard as some market followers make it out to be. The trick is to again focus on the companies that benefit from the massive AI buildout going on right now. Chip designers, chip fabricators, and computing factories are among those companies expected to grow rapidly in 2026. This is where investors will find the best-performing AI stocks.
Investors won’t know for a few months if these picks end up panning out, but I think the odds are good that each of these three stocks will deliver impressive returns this year.
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Nvidia
No good AI investment list is complete without semiconductor chip designer and software platform operator Nvidia (NASDAQ: NVDA). Nvidia has been the top AI stock to own since the technology picked up steam in late 2022. While there has been significant computing capacity built over the past three years, the industry is still just getting started. Just three of the major AI hyperscalers announced a cumulative $500 billion-plus in expected capital expenditures during 2026. All of the other major players in the space will be spending billions to build out their operations as well. Furthermore, Nvidia will likely start selling chips directly to China again, which will further boost its growth rate.
This all suggests Nvidia’s already rapid growth rate will accelerate during 2026. For fiscal 2026 (which ended last month), Wall Street analysts project Nvidia’s annual growth rate will come in at 57% — down year over year but still an impressive figure. For fiscal 2027, that metric is forecast to rise to 65%.
That’s simply astounding growth, and showcases that the AI buildout is far from over. Nvidia is one of the best ways to capture the massive growth in this sector, and with it trading for 25 times forward earnings, it’s a no-brainer buy now.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is another important piece to the AI puzzle. While Nvidia designs the impressive GPUs it sells, it doesn’t actually manufacture them. That work is split up among several vendors, but the most critical by far is TSMC.
Without TSMC, AI wouldn’t look the same as it does today. TSMC also happens to be a critical chip manufacturer to many of Nvidia’s competitors, making it an excellent way to invest in AI as a whole rather than needing to pick an individual winner.
TSMC’s management is bullish on 2026, with overall revenue expected to grow at nearly a 30% pace during the year. However, that’s just one year. From the period starting in 2024 and ending in 2029, Taiwan Semiconductor expects AI-related chip revenue to rise at nearly a 60% compounded annual growth rate (CAGR). That’s an unbelievable pace, and it shows that while 2026 will be a strong year for AI, the rest of the decade will be just as impressive.
Nebius Group
Nebius Group (NASDAQ: NBIS) isn’t as popular as Nvidia or TSMC, mainly due to its size. However, at its growth rate, it won’t stay small for long. Nebius is essentially an AI-focused cloud computing business, as it’s building and renting out space in data centers to place full-stack solutions in them that can be accessed and used for training AI models and running them as well. This business model has already been proven out by many of the largest tech companies, so it’s no surprise that a smaller player is looking to enter this vital market.
Nebius management expects monster growth to occur, and if it delivers, it could be a top stock to own in 2026. In 2025, its annual run rate (ARR) was $1.25 billion. By the end of this year, its ARR is expected to be between $7 billion and $9 billion. Seeing a company increase by that much, that fast, is downright impressive, and it’s a reason why Nebius could be one of the best stocks to own in 2026.
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Keithen Drury has positions in Nebius Group, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
