Top AI Stocks to Buy in 2026 and One to Avoid
The landscape of artificial intelligence (AI) investments is rapidly evolving. Analysts are scrutinizing AI-focused stocks to identify potential opportunities and risks. Below, we explore three notable AI stocks worth considering in 2026, alongside one that may not be the best choice for investors.
Top AI Stocks to Buy in 2026
1. Meta Platforms (META)
Meta Platforms has made significant strides in AI technologies, enhancing its social media platforms. The company’s growth in revenue and earnings can be attributed to its AI-powered algorithms that increase user engagement on platforms like Instagram.
Recent data shows that Meta has over 3.5 billion daily active users, presenting various monetization avenues beyond advertising. Despite some investor caution regarding its extensive investments in AI, analysts believe these initiatives may eventually unlock new revenue streams, making Meta a compelling AI stock for 2026.
- Current Price: $620.25
- Market Cap: $1.6 trillion
- Gross Margin: 82.00%
- Dividend Yield: 0.34%
2. Apple Inc. (AAPL)
Apple continues to innovate, particularly with its latest iPhone 17, which features multiple AI enhancements. This approach has reinvigorated its revenue growth, marked by the highest increases in the past three years.
Apple is poised for further expansion, projecting double-digit revenue growth for the coming quarter. With over 2 billion devices in circulation, the company possesses vast monetization potential, especially in its rapidly growing services segment.
- Current Price: $255.81
- Market Cap: $3.8 trillion
- Gross Margin: 46.91%
- Dividend Yield: 0.40%
AI Stock to Avoid
3. Recursion Pharmaceuticals (RXRX)
Recursion Pharmaceuticals aims to transform drug development using its AI-driven operating system. The company claims it can shorten the drug discovery timeline significantly, which could lower costs for pharmaceutical firms.
However, Recursion faces substantial challenges. It currently lacks any marketable products, and its candidates have not progressed to advanced clinical trials. Additionally, larger competitors are aggressively pursuing AI solutions, which may hinder Recursion’s market entry and profitability.
- Current Price: $4.67
- Market Cap: $2.4 billion
- Gross Margin: -16039.74%
In conclusion, while stocks like Meta Platforms and Apple present strong opportunities in the AI sector, Recursion Pharmaceuticals is a cautious choice for investors looking to minimize risk. Assessing the performance and potential of these companies will be crucial as we approach 2026.
