Projected Growth in AI Spending: According to consulting firm Gartner, global expenditure on artificial intelligence (AI) is anticipated to reach approximately $2.5 trillion by 2026. Additionally, major hyperscalers like Amazon, Alphabet, Meta Platforms, Microsoft, and Oracle have announced plans for over $600 billion in capital expenditures in 2026, with more than 75% earmarked for AI infrastructure initiatives.
Persistent Momentum in AI Investments: While there are ongoing discussions on Wall Street about whether the AI market’s growth trajectory is sustainable or merely speculative, the investment strategies of several companies indicate a continuing upward trend.
Key Stocks to Watch in 2026: As AI continues to advance, several stocks are expected to benefit significantly from this trend in 2026.
Nvidia’s Dominance: Shares of Nvidia (NASDAQ: NVDA) have faced recent declines following comments from Arista Networks‘ CEO regarding a shift in AI deployments towards Advanced Micro Devices. However, it appears Wall Street may have reacted too strongly, as Nvidia still commands roughly 90% of the AI chip market. The company is also broadening its reach into networking, software, and complete rack solutions that integrate various hardware and software components.
Future Outlook for Nvidia: The management has reported over $500 billion in revenue commitments for its upcoming Blackwell and next-generation Rubin systems from early 2025 to late 2026. The demand for Blackwell systems is currently boosting earnings, while the new six-chip Vera Rubin system is set to debut in the latter half of 2026.
TSMC’s Central Role in AI Infrastructure: Taiwan Semiconductor Manufacturing (NYSE: TSM) holds nearly 70% of the global semiconductor foundry market and is pivotal to AI infrastructure development. High-performance computing (HPC) contributed to 58% of TSMC’s fiscal 2025 revenue, reflecting robust AI-powered chip demand.
Applied Materials’ Growth Potential: As the largest semiconductor equipment provider in the U.S., Applied Materials (NASDAQ: AMAT) is experiencing increased demand for its manufacturing tools, particularly due to AI data centers driving the need for advanced chips. The company expects its semiconductor equipment segment to grow over 20% in 2026, positioning itself well amid the rising demand for complex chip manufacturing processes.
