Gartner Says AI Spending Will Hit $2.5 Trillion in 2026. Here Are 3 Stocks That Could Benefit Most.

By John Ballard – Mar 4, 2026 at 2:27PM ESTKey PointsAlphabet is seeing significant revenue growth from Google Cloud, driven by increased adoption of AI projects.AMD benefits from the demand for advanced chips, with strong revenue growth and surging free cash flow.Datadog could benefit from an explosion in AI agents that require careful monitoring for security.Artificial intelligence (AI) spending is not showing signs of slowing down. Gartner expects worldwide spending to increase 44% this year to $2.5 trillion. This growth could benefit several companies that offer cloud computing services, advanced chips, and software. Here are three stocks that could benefit most from the AI spending boom. 1. Alphabet (Google) As AI spending stretches into the trillions, the companies providing the backbone infrastructure for cloud services will be obvious winners. Alphabet (GOOG 0.04%) (GOOGL 0.11%) is one of the leading cloud computing providers. Google Cloud offers the complete stack across its Tensor Processing Units (TPUs), software tools, and expanding data center footprint. Image source: Getty Images. Google is benefiting tremendously as enterprises shift from experimentation to production in AI projects. Revenue from Google Cloud surged 48% year over year in the fourth quarter to reach nearly $18 billion. This growth was driven by a combination of higher spending from existing customers and Google winning larger spending commitments from new ones. Google's AI capabilities are also spilling over to Search, with AI features driving increasing engagement from everyday users. These results show that the company is one of the top beneficiaries of the AI boom, yet investors can still buy Alphabet stock at a reasonable forward price-to-earnings (P/E) ratio of 26. ExpandNASDAQ: GOOGLAlphabetToday's Change(-0.11%) $-0.34Current Price$303.24Key Data PointsMarket Cap$3.7TDay's Range$300.73 - $305.4052wk Range$140.53 - $349.00Volume1.1MAvg Vol34MGross Margin59.68%Dividend Yield0.27% 2.

Advanced Micro Devices Around half of data center spending goes toward computing hardware, like servers and chips. This favors Advanced Micro Devices (AMD +5.82%), which is seeing growing demand for its EPYC server central processing units (CPUs) and Instinct graphics processing units (GPUs). AMD scored major deals last year to supply chips to Oracle and OpenAI, and it just struck a similar agreement with Meta Platforms. These deals strengthen the case for buying AMD, even for an investor who already holds Nvidia. Nvidia remains the dominant leader in GPUs, but AMD has a diversified portfolio of chip offerings that are also in high demand. AMD's revenue grew 34% year over year in the fourth quarter, led by its data center segment. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(5.82%) $11.12Current Price$202.07Key Data PointsMarket Cap$329BDay's Range$189.86 - $202.4352wk Range$76.48 - $267.08Volume1.5MAvg Vol36MGross Margin45.99% Importantly, AMD's surging free cash flow, up 129% last year, shows why the stock could be a rewarding investment. Analysts expect AMD's free cash flow to grow from $5.5 billion in 2025 to $19 billion by 2028, as higher margins from selling complex AI chip systems contribute more to its total revenue. The stock is trading at 18 times 2028 estimates, leaving room for upside over the next several years. 3. Datadog The recent launch of Anthropic's Claude CoWork AI agent, which can write code all on its own (among other tasks), is creating confusion on Wall Street around the competitive landscape in software. This has caused a sell-off in software stocks this year, including Datadog (DDOG +5.86%), as investors fear that autonomous agents could make it easier to create new software on the fly, disrupting established players. But the increase in AI agents could actually benefit Datadog, making the stock's recent dip a potentially rewarding entry point for investors. Large enterprises can't trust an AI agent operating on its own. Agents need careful monitoring for security reasons. This could be a massive opportunity for Datadog, which offers a platform that monitors activity across a company's servers, software, and operations. Datadog has over 4,300 customers spending at least $100,000 annually, and a 97%-plus customer retention rate, indicating high customer satisfaction. It's a bullish sign for the company's prospects that revenue growth accelerated in the fourth quarter, up 29% year over year. ExpandNASDAQ: DDOGDatadogToday's Change(5.86%) $6.55Current Price$118.32Key Data PointsMarket Cap$42BDay's Range$111.00 - $120.3952wk Range$81.63 - $201.69Volume270KAvg Vol5.6MGross Margin79.93% The emergence of AI agents is creating a fluid competitive environment, so investors should actively monitor Datadog's growth for signs of weakness. But unless the business starts to see weakening growth, investors should look at the dip as a buying opportunity. Analysts are currently modeling 50% annualized earnings growth over the coming years, yet the recent sell-off has pushed the stock's forward P/E down to 47 after the recent stock price haircut. This is an attractive valuation to start a position.Read NextMar 2, 2026 •By Rich SmithWhy Did Alphabet Stock Drop Today?Mar 1, 2026 •By Neil Patel2 Tech Stocks You Can Buy and Hold for the Next DecadeFeb 28, 2026 •By James HiresPrediction: The AI Capex War Will Create a Clear Winner by the End of 2026Feb 28, 2026 •By Marc GubertiGot $5,000? 1 Tech Stock to Buy and Hold for the Long Term.Feb 27, 2026 •By Adria CiminoWant to Invest in Quantum Computing? 2 Stocks That Are Great Buys Right NowFeb 25, 2026 •By Eric Volkman1 Artificial Intelligence (AI) Stock With More Potential Than Any CryptocurrencyAbout the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedAlphabetNASDAQ: GOOG$303.45(-0.04%)-$0.11AlphabetNASDAQ: GOOGL$303.24(-0.11%)-$0.34Advanced Micro DevicesNASDAQ: AMD$202.07(+5.82%)+$11.12DatadogNASDAQ: DDOG$118.32(+5.86%)+$6.55*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.