The technology sector is where you want to look for superior growth stocks in 2026. Cloud service providers continue to see insatiable demand for AI services. This is creating a strong demand environment for tech companies throughout the supply chain in the AI infrastructure market.
Here are two AI stocks that can deliver wealth-building returns over the next decade.
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1. Advanced Micro Devices
Advanced Micro Devices (AMD 3.39%) is one of the top chip suppliers for the consumer PC market and data centers. Over the last two years, its revenue has grown at an annualized rate of over 20%, supporting rising share prices for investors. However, as AMD invests more in the AI infrastructure opportunity, management believes its growth will accelerate significantly.
Wall Street analysts expect AMD to report $34 billion in revenue for 2025. AMD's long-term outlook calls for its annual revenue to grow 35% on a compound annual basis over the next three to five years.
NASDAQ: AMD
Key Data Points
AMD enters 2026 with its largest business lines enjoying strong momentum. Data center revenue continues to grow strongly, reaching a record $4.3 billion in the third quarter. AMD expects its data center business to grow revenue at a rate of over 60% on an annualized basis in the next five years.
One key differentiator for AMD in the chip industry is its diversified portfolio, which includes central processing units (CPUs). Its Ryzen processors continue to gain share against Intel in the consumer market, with client segment revenue hitting a record $2.8 billion in Q3, representing a 46% year-over-year increase.
AMD's gaming business is also heating up again, pulling in $1.3 billion of revenue last quarter, nearly tripling over the year-ago quarter. Over the next several years, growth is expected to be more modest for client and gaming, but still solid contributors to the top line. Management's long-term forecast anticipates these segments to grow revenue at an annual rate of over 10%, with continued market share gains in the PC market, driven by its lineup of Ryzen processors.
Another huge opportunity waiting in the wings is AMD's portfolio of adaptive computing chips, including field-programmable gate arrays (FPGAs) and other specialized products. This gives AMD a unique edge over competitors in providing solutions for AI running remotely on edge computing devices.
Altogether, AMD benefits from multiple avenues for chip demand. There's enough opportunity across its business to deliver excellent returns to investors. Analysts expect the company's earnings to grow at an annualized rate of 45% in the coming years.
2. Microsoft
Microsoft (MSFT 0.48%) has a lucrative ecosystem of productivity tools, cloud services, and other professional services that serve a large base of users. It serves millions, if not billions, of users, with many services, such as Microsoft 365, generating consistent revenue through subscriptions.
NASDAQ: MSFT
Key Data Points
Its subscription-based business model generates substantial revenue, which fuels investment in innovation. Microsoft spent $69 billion in capital expenditures over the last year, all of which was internally funded out of its $147 billion in trailing cash from operations. These investments have enabled the development of a world-class array of AI chips, systems, and cloud software. It's no surprise to see that Microsoft Cloud revenue grew 26% year over year in its most recently reported quarter, reaching $46 billion.
Its large fleet of data centers powers the cloud services behind all its products, and is helping drive significant growth across its business. Microsoft 365, including Office software, has over 400 million paid subscribers, while its Copilot AI assistant has more than 100 million monthly active users.
AI remains a key driver for the Microsoft Azure cloud business. Azure revenue grew 40% year over year last quarter, a remarkable growth rate for a company that generated $75 billion in revenue for fiscal 2025 (which ended in June).
Microsoft is spending aggressively on AI infrastructure, while still reporting healthy profitability. Operating profit grew 24% year over year last quarter, higher than its 18% top-line growth rate. Microsoft's huge installed base of users and technology infrastructure will make it a formidable player in an AI-driven economy. Analysts expect the company's earnings to grow at a rate of 13% per year.
