7
Best AI Stocks Of 2026
Compare the Best AI Stocks To Buy
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The Best AI Stocks To Buy Now
Advanced Micro Devices, Inc. (AMD)
Best for semiconductor enthusiasts
Advanced Micro Devices, Inc. (AMD)
Forward P/E
P/E
1-year return
AMD is one of the darlings of the semiconductor industry. The stock has been ablaze with excitement and has notched a triple-digit return over the past five years.
AI Focus
Developing chips for data centers, PCs and edge devices
Why We Like It
Intel is one of AMD’s primary competitors in the CPU market. But AMD has managed to dig in its heels and gain market share in the CPU, GPU and data processing space. The firm continues growing in key markets, mainly high-performance computing, gaming and AI.
What We Don’t Like
Regarding competition pressure, Nvidia still reigns supreme in the AI GPU space, limiting AMD in that lucrative market. The company also relies on the Taiwan Semiconductor Manufacturing Co. for its chip production. Some of the chips will soon be made at TSMC’s new production site in Arizona.
- Consistent gains in market share in the CPU space
- Financial momentum
- Valuation concerns
- Dependence on third-party fabricators
AppLovin Corp. (APP)
Best for gaming enthusiasts
AppLovin Corp. (APP)
Forward P/E
P/E
1-year return
This company’s name sounds too close to McLovin’s character from “Superbad.” But it does provide a valuable business solution to gaming app companies.
AI Focus
AI algorithm for mobile app monetization
Why We Like It
AppLovin works with mobile application developers, mainly those within the gaming sector, to help them optimize their advertising dollars. Each time someone downloads the app, APP generates revenue and helps the company find an advertiser. The S&P 500 also recently included AppLovin in the gold standard U.S. stock index in 2025.
What We Don’t Like
One of the major cons of the stock is that it may have already reached its meteoric height—it has an extremely high P/E ratio (implying a high valuation).
- Solid revenue growth
- Well-positioned in AI-driven advertising
- The company’s revenue is tied to cyclical sectors (e.g., advertising and gaming)
- Relatively overpriced stock based on P/E
Broadcom (AVGO)
Best for AI workloads
Broadcom (AVGO)
Forward P/E
P/E
1-Year Return
Put this stock in the infrastructure and enterprise AI bucket. Commonly referred to as a “picks and shovels” stock, it will help you gain exposure to the wider AI industry. That’s because Broadcom partners with Google (aka Alphabet) and OpenAI, to name a few.
AI Focus
Application-specific integrated circuits for AI data centers
Why We Like It
It’s estimated that AVGO holds around 70% of the market share in application-specific integrated circuits (ASICs). Broadcom has had a hot streak with acquisitions to diversify its business. Its largest acquisition was VMware in 2023 for $69 billion, a move to expand AVGO’s reach into cloud computing and virtualization. Other acquisitions include CA Technologies, Symantec Enterprise Security and Brocade Communications Systems.
What We Don’t Like
Broadcom is highly exposed to the smartphone market, and a significant portion of AI revenue is exposed to a small number of VIP customers.
- Diversified business, with strategic acquisitions
- A big player in networking chips
- High customer concentration
- Considerable liabilities on the balance sheet
Micron Technology (MU)
Best for data centers
Micron Technology (MU)
Forward P/E
P/E
1-Year Return
Micron is a key supplier of memory chips to fuel AI workloads (think GPUs in data centers). As generative AI models grow and require faster data access, demand for Micron’s memory products should rise.
AI Focus
AI memory and storage solutions
Why We Like It
MU stands to benefit from the demand for high bandwidth memory, or HBM. With heavy investment in HBM and other next-gen technologies, it could be a long-term winner. Fun fact: Micron is a key component supplier for Nvidia’s graphics processing units (GPUs).
What We Don’t Like
Micron is vulnerable to the cyclical nature of the semiconductor and memory markets. Short-term downturns in memory prices can hurt the stock value.
- Integral to AI infrastructure
- Rising demand for devices related to cloud computing
- Highly cyclical, with negative earnings per share during “down years”
- Sensitive to semiconductor market fluctuations
Nvidia (NVDA)
Best for AI chip market
Nvidia (NVDA)
Forward P/E
P/E
1-Year Return
Nvidia is renowned for its graphics processing GPUs. But the company also develops microchips for autonomous vehicles and AI applications. Major players like Microsoft and Meta rely on NVDA’s chips for running their AI models.
AI Focus
AI hardware, GPUs
Why We Like It
Nvidia has been a standout performer in the AI sector over the past year. Nvidia also engages in share repurchase programs, which can enhance shareholder value over the long term.
What We Don’t Like
A major drawback is Nvidia’s high valuation. Another risk: customer concentration risk. A relatively small number of large customer accounts represent a substantial share of Nvidia’s data center revenue. So Nvidia would feel an impact if these mega-companies trimmed their AI infrastructure spending.
- Confidence in NVDA’s earning potential
- Dominant in the AI chip market
- Dependent on a small group of AI companies
- Elevated valuation leaves little room for error
Methodology: How We Score Our Products
The top stocks listed above all meet the following criteria and are traded on major U.S. stock exchanges:
- Analyst Consensus of “Buy” or Better: A high number of “buy” ratings from analysts suggests the stock is expected to outperform the broader market.
- Market Capitalization of $10 Billion or More: Companies with a market cap of over $10 billion typically dominate their industries and possess competitive advantages. Smaller companies, with market caps under $10 billion, tend to receive less attention from the media and analysts and carry higher investment risk.
- Altimeter Overall Grade of B or Higher: Only stocks rated “B” or above by Altimeter are included. This grade reflects factors like profitability, earnings stability, valuation and growth expectations. Stocks that score “B” or better rank in the top quarter of over 5,000 companies in Altimeter’s database, signaling strong potential for improving returns and favorable valuations.
- Positive Earnings-Per-Share Growth: For our analysis, we looked at stocks that are predicted to have positive EPS growth over the next five years. This is an indicator of strong financial and profitability performance. We also screened for stocks that had positive projected EPS growth for 2025.
- Global X Artificial Intelligence & Technology ETF (AIQ) Inclusion: AIQ is one of the most popular AI funds in terms of market capitalization, at more than $6 billion. The AI stocks included on this list are all AIQ holdings, selected as companies to benefit from AI products and services.
Frequently Asked Questions (FAQs)
Should I invest in AI stocks?
AI is a burgeoning sector with tremendous promise. However, nobody can tell you definitively whether you should invest in AI stocks.
The decision to invest in AI stocks needs to be made by each investor, depending on that investor’s portfolio and what they believe the future holds for the industry.
See our list of the best online brokers to start investing in your favorite AI stocks.
Are AI stocks worth it?
AI stocks are widely regarded as the ultimate growth plays. Major S&P 500 companies like Nvidia, Microsoft and Alphabet are at the forefront of monetizing AI technologies.
The primary drawback of these pure-play AI stocks is their lofty valuations. Put simply, when you buy these stocks at peak prices, there’s little margin for error if they fall short of expectations.
AI isn’t a stand-alone sector, though. As AI gathers momentum, its adoption is accelerating across industries such as financial services, healthcare and manufacturing, to name just a few.
AI is not just a trend—it’s a structural shift in how businesses operate. Companies leveraging AI aren’t just cutting costs; they’re creating entirely new capabilities, automating insights that used to take days into minutes. That kind of value creation translates directly into market competitiveness, which is why the sector is seeing such explosive growth.
– Josh Pantony, CEO of Boosted.ai.
Tip: For a balanced approach to AI investing: consider investing in AI-focused ETFs.