3 of the Best Artificial Intelligence (AI) Stocks to Buy for 2026

By David Jagielski, CPA – Dec 19, 2025 at 8:38PM ESTKey PointsThe stocks listed here all have market caps of more than $1 trillion.They are among the leading companies in tech, but their valuations still aren't terribly high with respect to earnings.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGAlphabetMarket Cap$3.7TToday's Changeangle-down(1.55%) $4.70Current Price$308.45Price as of December 19, 2025 at 3:58 PM ETThese tech giants are already massive, but that doesn't mean they've run out of opportunities to grow.Are you worried that you've missed out on the opportunity to generate a great return from artificial intelligence (AI) stocks? There are still plenty of good and reasonably priced AI stocks you can add to your portfolio today. And many of them are already large, safe, and established players in tech. Heading into 2026, three AI stocks that I think possess the most upside are Alphabet (GOOG +1.55%)(GOOGL +1.47%), Amazon (AMZN +0.21%), and Taiwan Semiconductor Manufacturing (TSM +1.67%). Here's why it's not too late to invest in these three tech giants. Image source: Getty Images. Alphabet It may come as a surprise to some that Alphabet is on this list. It is, after all, already one of the most valuable companies in the world. Its market cap of $3.7 trillion puts it not all that far behind the world's most valuable company, Nvidia, which is worth $4.3 trillion. Once a company gets that valuable, it becomes harder to keep the growth going. The reason Alphabet still looks like a fantastic buy going into 2026 is that it can still go higher. For a while, investors were skeptical about its ability to continue to dominate in search, its core business, amid concerns that AI chatbots would steer users away from Google. And there may still be many skeptics out there, which is why Alphabet isn't the most valuable company in the world right now, which I believe is where it should rank given how massive its business is. ExpandNASDAQ: GOOGAlphabetToday's Change(1.55%) $4.70Current Price$308.45Key Data PointsMarket Cap$3.7TDay's Range$302.40 - $308.7252wk Range$142.66 - $328.67Volume1.3MAvg Vol24MGross Margin59.18%Dividend Yield0.27% AI has enabled Alphabet to enhance Google Search and add value for creators on YouTube. But don't forget that it also has a rapidly expanding robotaxi business in Waymo. Its cloud business is expanding, and the company is also making its own chips.Advertisement Its operations are far more diverse than many other AI stocks out there, including Nvidia's. And yet, Alphabet's stock trades at a forward price-to-earnings (P/E) multiple of 28. That's modest in comparison to the Technology Select Sector SPDR ETF where the average forward earnings multiple is just under 30. Alphabet should command a far higher premium than where it's at today, which is why, even at its current valuation, it can be a no-brainer buy heading into next year. Amazon Another obvious pick looks to be Amazon, whose valuation is $2.4 trillion, which remains firmly behind both Nvidia and Alphabet. Over the past 12 months, Amazon's stock price has actually declined by 4%. This is another example of an AI stock that may be worthy of a higher valuation. The company is known primarily for its online marketplace and its cloud business, Amazon Web Services (AWS), which is a terrific growth driver. But in addition to that, Amazon also has a robotaxi business of its own, Zoox. It's not as big or popular as Waymo, but its toaster-designed vehicles look sleeker and more modern and could be more ideal for operating as robotaxis. ExpandNASDAQ: AMZNAmazonToday's Change(0.21%) $0.47Current Price$227.23Key Data PointsMarket Cap$2.4TDay's Range$225.61 - $229.1252wk Range$161.38 - $258.60Volume1.4MAvg Vol48MGross Margin50.05% Amazon has also been expanding its same-day delivery of fresh groceries to more markets recently, which can steal some market share from rival Walmart. Amazon has done a great job of predicting and anticipating purchases on its online marketplace, and replicating that success with groceries could make that an underrated opportunity where its AI capabilities can shine and give it an advantage. Given the diversification of Amazon's business and plentiful growth opportunities, this is a stock that should also be worth more; it trades at a forward P/E of 27.

Taiwan Semiconductor Manufacturing In contrast to the other tech giants listed above, there's Taiwan Semiconductor Manufacturing, or TSMC as it is also known. Its business is not as diversified, and that works to its advantage. TSMC makes chips for tech companies, including Nvidia. Its low-cost operations make it difficult for Intel and other rivals to compete. The Taiwan-based company plays an important role in the AI world due to the industry's dependence on its foundry. ExpandNYSE: TSMTaiwan Semiconductor ManufacturingToday's Change(1.67%) $4.76Current Price$289.44Key Data PointsMarket Cap$1.5TDay's Range$286.38 - $292.1452wk Range$134.25 - $313.98Volume602KAvg Vol13MGross Margin57.75%Dividend Yield1.08% In its most recent quarterly report, for the quarter that ended on Sept. 30, TSMC's revenue rose by 30%, and its diluted per-share profit jumped by 39%. Not only has its growth been impressive, but it has incredibly strong operating margins of around 50%. The stock has rallied more than 40% this year and has a $1.5 trillion market cap. But with a forward P/E of just under 24, it's the cheapest stock on this list.Read NextDec 19, 2025 •By Bram BerkowitzDespite Warren Buffett's Imminent Departure, Berkshire Hathaway Piled Into an AI Stock That's Been a 10-Bagger Since Its IPO in 2014Dec 18, 2025 •By Jennifer SaibilThis "Magnificent Seven" Company May Now Be Winning the AI WarDec 18, 2025 •By Adam SpataccoDoes Philippe Laffont Know Something Wall Street Doesn't?

The Billionaire Investor Just Sold Nvidia and AMD, and Bought These Other Chip Stocks InsteadDec 16, 2025 •By Daniel SparksAI Infrastructure: 1 Cloud Stock Poised for Explosive GrowthDec 16, 2025 •By Brett SchaferPrediction: This Hypergrowth AI Stock Will Finish 2026 With the Largest Market Cap in the WorldDec 14, 2025 •By Billy DubersteinWhy the Best-Performing "Magnificent Seven" Stock of 2025 Is Still a Buy for 2026About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedAlphabetNASDAQ: GOOG$308.45 (+0.02%) $+4.70AlphabetNASDAQ: GOOGL$306.91 (+0.01%) $+4.45Taiwan Semiconductor ManufacturingNYSE: TSM$289.44 (+0.02%) $+4.76AmazonNASDAQ: AMZN$227.23 (+0.00%) $+0.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement