A wealth of companies have experienced spectacular share price gains in recent years, thanks to the rise of artificial intelligence (AI). According to analysts at Bank of America, AI remains "the place to be" in 2026.
Many businesses are touting AI these days, yet not all of them are going to see sustained success over time. That said, three companies well positioned to thrive over the long term are Nvidia (NVDA 1.53%), International Business Machines (IBM 0.57%), and Astera Labs (ALAB 3.86%).
Each focuses on different aspects of the AI industry, offering portfolio diversification, and their strengths make them worthwhile investments for 2026. Here's a look into them to unpack why they are poised to benefit from the secular trend of artificial intelligence.
Image source: Getty Images.
Nvidia's many AI strengths
Nvidia's central role in providing advanced semiconductor chips for AI is well known. Less talked about is its compute unified device architecture (CUDA) software platform, which has become a major contributor to the company's economic moat. CUDA allows customers to customize Nvidia's chips to their specific business needs, and the software has become the default programming standard for the AI industry.
These factors contributed to Nvidia's spectacular 2025, as revenue for its fiscal year's first nine months through Oct. 26 totaled $147.8 billion, a substantial step up from $91.2 billion in the prior year. The company also set itself up to see more strong performance in 2026.
Last year, it increasingly established itself as a key player in the artificial intelligence ecosystem by signing a number of partnerships with major businesses across the AI sector. These include collaborations with Palantir Technologies, Uber Technologies, and Intel.
For instance, Palantir is adopting the CUDA platform for its own AI efforts. Uber will use Nvidia's tech for self-driving cars to help it launch a fleet of autonomous vehicles by 2027. Intel will collaborate with Nvidia to launch AI-enabled PCs and custom chips for data centers, where AI systems are housed.
NASDAQ: NVDA
Key Data Points
IBM's steps toward the evolution of computing
This year looks like an important one for IBM because its efforts in quantum computing could reach a game-changing milestone. By the end of 2026, Big Blue expects to achieve quantum advantage.
This milestone marks the point at which its quantum computers become more efficient to use than today's most powerful supercomputers. Quantum computers employ the properties of quantum mechanics to solve complex calculations that are not possible using a conventional supercomputer.
Possessing that kind of computing potency positions IBM to evolve AI to new heights. Consequently, when Big Blue announced its quantum computer progress on Nov. 12, its stock hit an all-time high of $324.90.
Another benefit to owning shares is the company's robust dividend, which yields over 2%. Big Blue has increased its dividend payments for 30 consecutive years, making it a reliable source of passive income.
NYSE: IBM
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Astera Labs' key AI role
Investing legend Warren Buffett espoused buying boring stocks. One that might fit that definition is Astera Labs. The company's products are used in data centers, working behind the scenes to enable AI systems to work at peak efficiency through its connectivity solutions.
Connectivity is an important factor in AI's performance, given the tremendous amounts of data involved in artificial intelligence systems and the distances it must travel within massive data centers, which can reach the size of cities. Astera's solutions address this need and prevent bottlenecks that can hamper AI execution.
AI has spurred the need to upgrade existing tech infrastructure, which contributed to Astera Labs reaching record Q3 revenue of $230.6 million, representing an impressive 104% year-over-year increase. This enabled net income to soar to $91.1 million, a significant reversal from the previous year's net loss of $7.6 million. It's no wonder the stock surged more than 30% over the past 12 months through the week ending Jan. 2.
NASDAQ: ALAB
Key Data Points
As a result, Astera stock's forward price-to-earnings (P/E) ratio is about 77. The forward P/E multiple tells you how much investors are paying for a dollar's worth of earnings based on estimates for the next 12 months.
Compare Astera Labs to Nvidia's far more reasonable forward P/E ratio of 25, and IBM's 24. This suggests Astera Labs shares are on the pricey side, so wait for the stock price to drop before deciding to buy.
