AI Stocks Worth Watching in 2026: Beyond the Hype to Real Growth Opportunities

Taiwan Semiconductor’s recent quarterly results sent ripples through the market, yet the real story extends far beyond one company. As foundry leaders post guidance confirming the artificial intelligence buildout continues accelerating through 2026, investors face a critical question: which AI stocks to buy now before valuations expand further?

The semiconductor landscape is shifting rapidly. While chip designers capture headlines, the overlooked players powering the infrastructure behind the scenes may offer better risk-reward profiles. Let’s examine why this moment matters and which companies warrant closer inspection.

The Macro Backdrop: Why AI Stocks Make Sense Right Now

Interest rate expectations have fundamentally changed the calculus for growth stocks. Recent inflation data strengthens the case for continued Federal Reserve accommodation in 2026, removing a major headwind that plagued equities in 2023 and 2024.

The earnings picture is equally compelling. Wall Street projects S&P 500 bottom-line growth of 12.8% in 2026—respectable, but the real opportunity lies in sector rotation. Technology sector earnings are forecast to expand 20%, nearly double the broader market rate. This disparity reflects the AI-driven productivity gains that continue to reshape corporate economics.

What’s particularly noteworthy: all 16 industry sectors are now projected to deliver positive earnings growth for the first time since 2018. This breadth suggests the AI opportunity isn’t a narrow phenomenon concentrated in mega-cap software companies. Instead, it represents a genuine business cycle refresh with participation across hardware, infrastructure, and services layers.

Cyclical timing compounds the opportunity. Valuations for many AI-related stocks have compressed 10-15% from recent highs, even as forward guidance remains robust. This disconnect between price weakness and earnings strength creates the type of asymmetric risk-reward setup that typically precedes sustained rallies.

The Infrastructure Play: Why Vertiv Deserves Attention

Among the less-obvious AI stocks to buy, Vertiv Holdings stands out as a critical enabler of the AI buildout. While chip designers like Nvidia capture investor imagination, the physical infrastructure challenges they face are equally daunting.

Data centers don’t run themselves. The computational intensity of modern artificial intelligence models generates extraordinary heat and power demands. Vertiv solves these behind-the-scenes problems—cooling systems, power distribution, software monitoring, and managed services that keep high-density computing environments operational 24/7.

The numbers tell a compelling story. Revenue is forecast to climb 28% in 2025 and 22% in 2026, reaching $12.43 billion. More impressively, adjusted earnings per share growth is projected at 45% and 29% respectively, following exceptional 60% growth in 2024. These metrics put the company on track to roughly double revenue between 2022 and 2026.

From an earnings trajectory perspective, the progression is striking: $0.53 per share in 2022, climbing through 2023’s 236% expansion and 2024’s 60% gain, reaching a projected $5.33 by the end of 2026. That represents roughly a 10x earnings expansion in four years—a pace achieved only by companies at the intersection of structural growth tailwinds and improving operational efficiency.

Valuation remains reasonable despite recent strength. The stock trades at 32.5X forward earnings, a 25% discount to its recent highs. More importantly, the RSI indicator—which highlights overbought conditions in momentum trades—remains in healthy territory even as many pure-play AI stocks show signs of speculative excess.

Timing considerations matter here. The January 2025 technical breakout has been tested multiple times, suggesting institutional accumulation rather than retail euphoria. The upcoming Q4 earnings (February 11 timeframe) could provide a catalyst to clear resistance at the 50-day moving average.

The Chip Competitor: Why AMD Remains a Compelling Buy

Advanced Micro Devices represents a different angle on the AI opportunity—the direct competition play. While Nvidia commands attention as the market leader, being in second place in a $1+ trillion serviceable market remains an enviable position.

AMD’s growth trajectory is substantial. Revenue expanded from $6.7 billion in 2019 to $25.8 billion in 2024, a period that captured the mobile computing transition and early cloud buildout. Consensus estimates call for 32% revenue growth in 2025 and 28% in 2026, reaching $43.43 billion. Reaching that scale would represent a 6.5x expansion from 2019 levels.

The earnings acceleration is even more impressive. The company is expected to grow earnings per share 20% in 2025 and 58% in 2026, reaching $6.26 versus $3.31 in 2024. Longer-term analyst estimates project EPS climbing well above $12 per share within several years, implying another doubling of profitability from current levels.

Historical context adds perspective. AMD stock has appreciated approximately 11,400% over the past decade, with even the recent 97% twelve-month gain outpacing the broader Mag 7 cohort (excluding Nvidia itself). Yet despite this dramatic appreciation, the stock trades at 40X trailing earnings—a 50% discount to five-year highs.

From a technical standpoint, AMD recently found support near its 21-week moving average and reclaimed early 2024 highs. This confluence of fundamental strength, reasonable valuation, and positive technical positioning could precede another leg higher.

The Broader Thesis

These individual stocks reflect a larger opportunity in AI infrastructure and semiconductors. The global semiconductor market is projected to expand from $452 billion in 2021 to $971 billion by 2028. That doubling of market size will create winners and losers—but the companies best positioned to participate in the expansion are likely to outperform both the broader market and the growing chorus of skeptics.

The key is distinguishing between hype-driven rallies and genuine earnings growth. The companies highlighted here—from infrastructure providers to chip manufacturers—offer concrete earnings visibility backed by multi-year guidance. When valuations compress while growth guidance remains intact, astute investors have historically found opportunity.

For those considering which AI stocks to buy right now, this combination of macro tailwinds, valuation repair, and multi-year earnings visibility may offer better risk-adjusted returns than chasing the latest momentum stories.