Global artificial intelligence (AI) spending is estimated to grow to around $2.5 trillion in 2026, according to consulting firm Gartner. At the same time, hyperscalers such as Amazon, Alphabet, Meta Platforms, Microsoft, and Oracle have said they collectively plan to invest over $600 billion in capital expenditures (capex) in 2026. Of that total, over 75% is expected to be directed toward AI infrastructure projects.
Even as Wall Street debates whether AI growth is sustainable or just a bubble, the capital plans of multiple companies suggest the momentum continues.
Against this backdrop, here are three stocks expected to benefit from the ongoing AI wave in 2026.
Image source: Getty Images.
1. Nvidia
Shares of Nvidia (NVDA 1.53%) have come under pressure recently after Arista Networks' CEO Jayshree Ullal noted that a growing share of AI deployments is shifting toward Advanced Micro Devices. However, Wall Street may have overreacted, as Nvidia still accounts for roughly 90% of the AI chip market. Nvidia is also extending its dominance beyond chips into networking, software, and full-rack solutions (fully integrated AI server systems that include graphics processing units, central processing units, networking interconnects, and a software ecosystem).
NASDAQ: NVDA
Key Data Points
Management claims that the company has revenue commitments of over $500 billion for its Blackwell and next-generation Rubin systems from the start of 2025 to the end of 2026. While exceptional hyperscaler demand for its Blackwell systems is driving the company's current earnings surge, the next-generation, six-chip Vera Rubin system is currently in full production. It will enter the market in the second half of 2026.
Nvidia is also expected to diversify its high-bandwidth memory (HBM) supply chain across all three major memory players, Samsung, SK Hynix, and Micron Technology. The multivendor HBM supply chain significantly reduces risks in Rubin's ramp and can translate into robust revenue and earnings growth for Nvidia in the coming years.
All these tailwinds should help keep driving Nvidia's share prices higher in 2026.
2. Taiwan Semiconductor Manufacturing
Accounting for nearly 70% share of the global semiconductor foundry market, Taiwan Semiconductor Manufacturing (TSM 4.96%) is at the center of the AI infrastructure build-out. High-performance computing (HPC), which includes complex AI workloads, contributed nearly 58% of the company's fiscal 2025 revenue.
NYSE: TSM
Key Data Points
Advanced chips, which are 7-nanometer (N7) and below, accounted for 77% of the company's fiscal 2025 wafer revenue. This revenue mix implies that AI-powered demand for cutting-edge chips is real and soaring. Besides chip designers, cloud service providers are also directly approaching TSMC to secure capacity.
Thanks to these robust demand trends, the company expects its revenue to grow close to 30% in 2026. However, AI chip revenue is expected to compound at an even higher rate of mid-to-high-50% annually through 2029.
TSMC has also closely aligned its technology roadmap with surging demand for smartphones, HPC, and AI. The company commenced high-volume production for 2-nanometer (N2) chips in late 2025 and expects a fast ramp in 2026. The company has also introduced the N2P node (an extension of the N2 family), with higher performance and better power efficiency than N2. These advances are increasingly critical as power efficiency becomes a key constraint for AI data centers.
Advanced packaging is also becoming a growth driver for TSMC, as modern AI accelerators increasingly rely on sophisticated integration of memory, logic, and networking interconnects. Management expects advanced packaging to contribute over 10% of revenue in 2026, up from 8% in 2025.
Taken together, TSMC appears well-positioned to sustain strong operational and earnings momentum in 2026.
3. Applied Materials
Applied Materials (AMAT 3.97%) is the largest U.S. semiconductor equipment player, and it supplies specialized manufacturing tools that chipmakers use to build semiconductor chips. These include machines that deposit ultra-thin material layers on the wafers, etch microscopic circuit patterns, and inspect wafers for defects.
NASDAQ: AMAT
Key Data Points
With AI data centers driving a surge in demand for cutting-edge logic chips and memory players, and foundries increasingly investing in capacity expansions for DRAM, HBM, and advanced packaging, these tools are also seeing accelerated demand. According to industry group SEMI, semiconductor equipment sales are estimated to rise around 9% year over year to $126 billion in 2026 and an additional 7.3% year over year to $135 billion in 2027.
Management expects Applied Materials' semiconductor equipment business to grow by over 20% in calendar year 2026. Demand is expected to be stronger in the second half of 2026 as chipmakers can only add new equipment when cleanroom space becomes available. Hence, the company expects strong momentum in 2027.
The way the AI chips are built also favors Applied Materials. HBM, used in AI chips, requires three to four times more wafers to be processed than traditional memory. These memory chips are also stacked in more layers, rising from 12 to 16 and now to 20 or even more. Hence, each AI memory module requires more chips to be manufactured and assembled, thereby increasing production volumes and packaging complexity.
Chip manufacturing for logic chips has also become more complex, requiring additional deposition, etching, and inspection steps. Applied Materials expects to benefit from these technology shifts, sell more tools per chip, and expand market share.
Hence, the company seems well positioned to benefit from accelerated AI-driven spending in 2026.
