The market for artificial intelligence application-specific integrated circuits (ASICs) is gaining momentum, making January a great time to invest in leading stocks in this sector.
AI stocks were a driving force for market gains in 2025, and their positive trend has persisted into 2026. Here, we highlight three major AI stocks to consider this month.
1. Broadcom
Following a robust showing in 2025, Broadcom (AVGO +3.79%) is set to achieve similar success this year. The company is now the preferred choice for clients looking to design customized ASICs tailored for AI tasks.
As major tech corporations seek alternatives to Nvidia’s GPUs to optimize costs for AI workloads, many are increasingly choosing Broadcom. The company has aided Alphabet (GOOGL +1.02%) (GOOG +1.05%) in crafting its renowned tensor processing units (TPUs).
2. Alphabet
Alphabet is progressing rapidly with its custom AI chips, having created its TPUs over ten years ago. These chips have been pivotal in managing its internal workloads and integrating into its technology ecosystem. Their evolution offers the company a significant strategic advantage.
Alphabet’s TPUs facilitate the training of its leading Gemini large language model (LLM) at a lower cost than competitors. Notably, Anthropic recently placed a $21 billion order for TPUs to power its AI workloads on Google Cloud.
3. Taiwan Semiconductor Manufacturing
Another crucial player in the AI infrastructure shift is Taiwan Semiconductor Manufacturing Company (TSMC). It is responsible for producing nearly all advanced AI chips, regardless of whether customers favor GPUs or ASICs.
TSMC maintains strong partnerships with both Nvidia and Broadcom, assisting them in scaling up chip production to meet the rising demand. Its integral role in the technology strategies of these companies cannot be overstated.
Thanks to its essential position in semiconductors, TSMC is also benefiting from significant pricing power. Its cutting-edge 2-nanometer technology, which is priced around 50% higher than its 3nm counterpart, is expected to see price increases over the next four years.
