The AI industry is really taking off, and many companies are starting to deliver impressive products, although the capital return has yet to show up for some. Still, that doesn't mean you should ignore this important investing segment, as there are plenty of stocks that look like great buys in the artificial intelligence sector.
Among the best buys now are Alphabet (GOOG 0.73%) (GOOGL 0.73%), Meta Platforms (META +1.72%), and Nvidia (NVDA +1.60%). All three of these stocks look primed for strong 2026 gains, and investors should consider scooping them up right now.
Image source: Getty Images.
Alphabet
Alphabet's start to the AI race was a rocky one. Several generative AI models were launched before Alphabet's, and a few of Alphabet's launches didn't go well. However, Alphabet has made its way back from these setbacks and has emerged as an AI leader.
NASDAQ: GOOGL
Key Data Points
Alphabet has unmatched capabilities compared to some AI competitors. First, its Gemini model is used daily by many via AI search overviews in Google Search. This could convert some non-AI users into Gemini users because they are using it daily and would have no reason to look for an alternative model. Additionally, Gemini is launching the ability to plug into your various Google account histories and develop a tailored AI model, just for you. That's an advantage that no other platform has, outside of Meta Platforms, the owner of Facebook, Instagram, and other social media sites.
Alphabet is an AI leader, and I think its dominance will grow even stronger throughout 2026. We're still waiting on Gemini to turn into a real cash cow, which could be a few years out, but I still think the stock is well worth buying right now.
Meta Platforms
Meta Platforms is another competitor in the AI race. It has developed its own generative AI model, Llama, and has deployed it throughout its social media empire. This has already led to more time being spent on its platforms, leading to more ads being viewed by users. However, it's using AI to tailor these ads, which is also leading to better conversion rates. This is exactly the kind of return on investment that the market wants to see, but Meta is having to spend a lot of money to deliver these results.
NASDAQ: META
Key Data Points
Meta's stock is down around 20% from its all-time high, mostly because of its guidance that it is going to spend substantially more on data centers in 2026 than it did in 2025. This should come as no surprise to anyone who follows the AI realm, but the market sold off its stock regardless.
This completely overlooks how well Meta is doing, as its third-quarter 2025 revenue rose an outstanding 26% year over year. With the stock trading for just 20 times forward earnings, it's an absolute bargain at these levels.
META PE Ratio (Forward) data by YCharts
I think Meta is a great buy now, as it's slated to take advantage of the AI buildout and could deliver strong returns on investments over the next few years.
Nvidia
Last is probably the most popular way to invest in AI, Nvidia. Nvidia makes graphics processing units (GPUs), which are the most common computing units used to train and run AI models. Nvidia continues to push the limits of what's possible in AI computing, and its new Rubin architecture showcases that. This product lineup launching later in 2026 allows inference to be run at a tenth of the cost of its previous Blackwell generation. They also cut the number of GPUs needed to train AI by a fourth.
NASDAQ: NVDA
Key Data Points
Now, it's not likely clients are going to reduce how many GPUs they are buying by a fourth. Instead, they'll keep their spending the same and reap the benefits of having four times the training power. This is a huge deal, and it could be exactly what AI needs to drive its success into the future.
Nvidia's stock is primed to take advantage of this increased AI spending and should do well throughout 2026 as a result. It's still one of my top AI stocks to buy now, and even though it has gone on an unprecedented run, it still has room to go.
