Prediction: This Artificial Intelligence (AI) Stock Will Crush the Market in 2026
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Microsoft released its in-house chip that will directly compete with Nvidia.Here's an AI stock that'll crush the market in 2026, and no, it's not Nvidia (NVDA +1.15%). Microsoft (MSFT +2.23%) is going to have the best year among the AI leaders. Why is that? Because on Jan. 26, the software company revealed its long-awaited Maia 200 chip. ExpandNASDAQ: MSFTMicrosoftToday's Change(2.23%) $10.51Current Price$480.79Key Data PointsMarket Cap$3.6TDay's Range$473.13 - $482.8552wk Range$344.79 - $555.45Volume1.3MAvg Vol25MGross Margin68.76%Dividend Yield0.71% This is Microsoft's second-generation in-house chip that's used for artificial intelligence (AI) inference. Inference is the "doing" stage of AI, where trained AI models move into solving real problems. Microsoft's Maia 200 is ready to compete Microsoft lagged behind its competitors in designing its own AI chips. This release marks an important milestone in the AI race between the tech industry's giants. The Maia 200 chip is built on Taiwan Semiconductor's 3-nanometer process. Image source: Getty Images. Maia 200 will directly compete with Nvidia's inference GPUs as well as Amazon's Trainium and Alphabet's Google TPU. Microsoft says Maia 200 has 30% better performance than its competitors for the same price. This bang-for-the-buck advantage is significant as price sensitivity grows in the sector. Microsoft's AI team will be the first to use Maia 200, but wider availability is expected to roll out in the near future. Microsoft's deployment of Maia 200 reduces its reliance on third parties. As the company rolls out the chip to a wider audience, it will also generate new revenue, including its availability for rent for Azure cloud customers. Maia 200's predecessor was not available to rent. Microsoft's stock is down a little over 2% to start 2026. The software company's forward price-to-earnings (P/E) ratio is currently under 30. Microsoft surpassed $3.5 trillion in market cap in 2025, and by that metric is the fourth-largest company in the world. Still, a successful launch of Maia 200 could mean serious growth for Microsoft as it sends a significant counterpunch to Nvidia's dominance. ExpandNASDAQ: NVDANvidiaToday's Change(1.15%) $2.14Current Price$188.61Key Data PointsMarket Cap$4.6TDay's Range$185.71 - $190.0052wk Range$86.62 - $212.19Volume3.7MAvg Vol186MGross Margin70.05%Dividend Yield0.02% Expect to see results in late 2026 I anticipate Maia 200's impact to really pick up steam as we head into the latter part of 2026. Azure and Microsoft's cloud businesses will continue to grow substantially throughout the year. Microsoft reported a 40% increase in Azure and other cloud services revenue in its first quarter fiscal year 2026 earnings report. As Microsoft moves Maia 200 from in-house to general availability, I expect this chip to make a real mark in the AI chip race and help accelerate Microsoft's growth in Azure and cloud services. Will it overtake Nvidia? That's probably not likely, but it could do some serious damage and help Microsoft stay atop the leaderboard. You heard it here: Microsoft will be the AI stock of the year.Read NextJan 27, 2026 •By John BallardThe Best Stocks to Invest $2,000 Right NowJan 27, 2026 •By Danny Vena, CPAMicrosoft Releases Powerful New AI Chip to Take on NvidiaJan 27, 2026 •By James BrumleyForget Quantum Computing Stocks: This Unavoidable Platform Is Where Big Customers Are Actually GoingJan 25, 2026 •By John Ballard2 AI Stocks to Buy in January and Hold for 5 YearsJan 25, 2026 •By Keithen DruryShould You Buy Microsoft Stock Before Jan. 28?Jan 24, 2026 •By Daniel SparksMicrosoft Stock Is Down More Than 10% In 3 Months. Time to Buy the Dip?About the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!
The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedMicrosoftNASDAQ: MSFT$480.79 (+0.02%) $+10.51NvidiaNASDAQ: NVDA$188.52 (+0.01%) $+2.05AlphabetNASDAQ: GOOGL$334.55 (+0.00%) $+1.29AmazonNASDAQ: AMZN$244.68 (+0.03%) $+6.26Taiwan Semiconductor ManufacturingNYSE: TSM$338.34 (+0.02%) $+5.63AlphabetNASDAQ: GOOG$335.00 (+0.00%) $+1.41*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.