Top 3 AI Stocks Set to Surge by 2026, Beyond Nvidia
The landscape of artificial intelligence (AI) investments is evolving rapidly. As AI technology continues to grow, investors are looking for stocks that show promising potential. With Nvidia leading the charge, there are several alternative AI stocks that may experience significant growth by 2026.
Top AI Stocks to Watch by 2026
While Nvidia is expected to perform excellently in 2026, diversifying your portfolio with alternative stocks is essential. Here are three strong contenders in the AI space beyond Nvidia:
1. Taiwan Semiconductor Manufacturing Company (TSMC)
- Current Price: $339.55
- Market Cap: $1.8 trillion
- Gross Margin: 59.02%
- Dividend Yield: 0.91%
Taiwan Semiconductor (TSMC) is the world’s largest chip foundry. It manufactures components for major companies including Broadcom and AMD. The firm has reported that the AI chip market will see a compound annual growth rate (CAGR) of nearly 60% from 2024 to 2029. For 2026, TSMC anticipates nearly 30% growth year-over-year in AI revenue, making it an attractive investment option.
2. Broadcom
- Current Price: $331.07
- Market Cap: $1.6 trillion
- Gross Margin: 64.71%
- Dividend Yield: 0.73%
Broadcom is pivoting towards the AI sector by designing custom chips for AI hyperscalers. Its AI semiconductor revenue in Q4 was $6.5 billion, a 74% increase year-over-year. Expectations for Q1 predict a doubling of AI semiconductor revenues to $8.2 billion. As a major player in the chip business, Broadcom’s initiatives make it a compelling alternative to Nvidia.
3. Advanced Micro Devices (AMD)
- Current Price: $252.13
- Market Cap: $411 billion
- Gross Margin: 44.33%
- Dividend Yield: Not applicable
AMD has been competing in the AI market, providing alternatives to Nvidia’s high-priced offerings. With advancements in graphics processing units (GPUs), AMD aims to capture a larger market share. The company’s management anticipates a 60% CAGR for its data center division through 2030. This projection signals significant growth potential, although it is perceived as a riskier alternative compared to TSMC and Broadcom.
Conclusion
Investing in AI stocks presents unique opportunities. While Nvidia continues to dominate, alternatives like Taiwan Semiconductor, Broadcom, and AMD are poised for substantial growth by 2026. Diversifying your investments among these companies can mitigate risks and enhance potential returns.
