3 AI Stocks to Invest in Before 2026

The artificial-intelligence sector is entering a defining period, and investor interest is shifting from novelty use-cases to large-scale infrastructure and deployment. Worldwide spending on AI is expected to reach nearly $1.5 trillion in 2025. In this context, selecting the right publicly traded companies now could matter for the next phase of growth.

This article examines three stocks that stand out due to their strong exposure to the expanding AI ecosystem, focusing first on the hardware and infrastructure side. Each company faces risks, but they also offer credible paths to benefit as AI moves from experimentation into enterprise-wide use. The goal is to provide perspective rather than hype.

Why Now Is an AI-Inflection Point

Investment in AI is shifting from a fringe trend to a core element of corporate strategy. According to a survey of IT leaders, 90% of organisations are deploying generative AI, and more than half expect a return on investment within a year. At the same time, hardware and infrastructure spending is rising rapidly. For example, one mid-2025 market update found the AI infrastructure segment is positioned to generate more than $250 billion in revenue during 2025.

The large sums involved create a constructive backdrop for companies that supply the computing, networking and data-centre capabilities underlying AI. Infrastructure is no longer a “nice to have” but a foundational asset for generative-AI models and large language-model deployments. For instance, one firm responsible for many of these systems recently reported its data-centre revenue grew by 56% year-over-year in Q2 2026.

Despite these positive signals, risks persist. Valuations are already elevated, competition is intensifying, and regulatory or export-control issues could disrupt growth. Investors are therefore focused less on “who has the buzziest AI product” and more on “who can reliably deliver infrastructure and scale adoption”. With 2026 on the horizon, this moment may mark the start of a broader wave of AI deployment rather than the end of it.

Stock #1 – NVIDIA

NVIDIA Corporation is frequently cited as the premier infrastructure play for AI. The company has evolved from selling graphics cards into supplying full-stack GPU architectures, interconnects and software platforms used across cloud providers, data centres and specialised AI “factories”. For example, the company says that over the next four years it plans with partners to build up to US$0.5 trillion of AI infrastructure in the U.S.

Financially, NVIDIA’s growth is striking. In its Q4 FY2025 (ended Jan 26, 2025) it reported revenue of US$39.3 billion, up 78% compared with the prior year. Data-centre revenue alone was US$35.6 billion, up 93% year-over-year. The expansion continues; in Q2 FY2026 the firm posted revenue of US$46.7 billion, up 56% over a year earlier.

Why does this matter? When companies deploy large language models or other advanced AI systems they require vast compute and networking resources. NVIDIA is one of the few players that supplies both the hardware and the software infrastructure for that demand. A recent investment-analysis site notes that its stock remains “a top AI investment bet in 2025” on account of data-centre dominance and leadership in GPU technology.

However, several caveats apply. First: valuation is high and many growth expectations are already priced in. Second: for infrastructure companies the risk of demand-pullback exists if AI spending slows, or if hardware supply constraints bite. Third: geopolitical and export-control issues (especially around chip exports to China) may reduce addressable markets.

In short: NVIDIA offers strong exposure to the build-out of AI infrastructure, but with the kind of risk-reward profile appropriate for those comfortable with high-growth, high-expectation stocks.

Stock #2 – Palantir Technologies

A strong candidate in the software-side of AI is Palantir Technologies. The company focuses on large-scale data-integration and AI platforms for commercial and government clients. In the first quarter of 2025, Palantir posted revenue growth of 39% year-over-year, driven in part by increased U.S. commercial business. For its U.S. commercial segment, growth accelerated to 71% in Q1, crossing a US$1 billion annualized run-rate. 

Palantir markets its “AIP” platform, which helps organisations manage, analyse and make decisions from large data sets. Industries such as manufacturing and logistics are cited as early beneficiaries of this tool. The commercial business is now gaining strength alongside its longstanding government contracts, giving Palantir a dual-engine growth story.

However, investors should note some key risks. First, the company’s valuation already reflects a high growth expectation, and questions remain about how much more upside is available. Analysts have noted Palantir’s high multiple relative to peers. Second, the enterprise software market is competitive, and companies must prove that AI-platform tools move beyond pilot phases into full deployment and recurring revenue. Finally, Palantir’s heavy exposure to government contracts can make its performance sensitive to policy changes or budget shifts.

For investors focused on the “AI adoption” piece rather than just hardware build-out, Palantir offers a clear story of software scaling across business and government. Watching contract awards and commercial customer expansion will be key.

Stock #3 – Broadcom Inc.

For a less-obvious but strategically meaningful play in AI, consider Broadcom Inc. While not always front-and-centre in discussions about AI, Broadcom supplies a number of the specialised chips, networking switches and data-centre components that support large-scale AI infrastructure. For example, in its fiscal Q3 2025 (ended August 3, 2025), Broadcom reported that its AI-semiconductor revenue surged 63% year-over-year to about US$5.2 billion.

Analysts estimate that capital expenditures by data-centre operators will increase by around 60% year-over-year in 2025, a trend that Broadcom and similar companies may benefit from. Broadcom has specifically begun shipments of the “Tomahawk 6” series of networking processors that double performance over prior generations and aim to accelerate “rack-scale” computing for AI workloads.

The value in this “enabler” play is that many major moves in AI depend not only on the headline chips but also on the broader systems integration, networking and custom packaging. Broadcom operates in that supporting ecosystem, which sometimes has less spotlight but remains critical to AI scale-up.

Nevertheless, there are caveats. Because Broadcom is more diversified, AI-specific growth may be diluted by slower segments. Supply-chain constraints and export-control regulations (especially related to China) remain risks. And the market may already price in the infrastructure acceleration. For those willing to look beyond the most obvious plays, Broadcom offers a way to engage the AI build-out without leaning solely on the marquee chip names.

Conclusion

Together the three stocks covered span distinct parts of the AI story: infrastructure build-out (chips and hardware), enterprise software adoption, and supporting components or enablers. Knowing where a company sits in that chain helps to clarify its opportunity and exposure. Investors should keep in mind that valuations across the AI sector are high and expectations remain lofty.

It is prudent to monitor not just growth rates, but contract wins, customer adoption, margin trends and the regulatory or supply-chain context. Diversification remains important: even with the AI theme, individual companies face distinct risks. Ultimately, while the next 12-24 months into 2026 may bring significant growth, investors should aim for companies with credible execution and real business momentum rather than chasing hype alone.