3 Top Artificial Intelligence Stocks to Buy in December

In the last month of the year, investors are more focused on where the market will head in 2026 versus what it will do to close out 2025. While Nvidia (NASDAQ: NVDA) has been the top artificial intelligence (AI) computing unit provider over the past three years, there is rising competition from unlikely places that could dethrone it.

The companies involved in this make up some of my best AI stocks to buy in December, and investors will be rewarded by buying these stocks now and holding them throughout next year.

Image source: Getty Images.

Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been designing its custom AI accelerator unit in collaboration with Broadcom (NASDAQ: AVGO) for a long time. In the past, it only used its Tensor Processing Unit (TPU) for internal use or made it available to rent through its cloud computing platform. However, news recently broke that Meta Platforms (NASDAQ: META) was in talks with Alphabet to purchase some TPUs.

That is an unaccounted-for revenue stream for Alphabet, and considering that Nvidia generated $52.1 billion from data center computing hardware sales during its fiscal third quarter, it could be a lucrative field to enter. Time will tell if this turns into the next exciting Alphabet segment or if this is just a one-time deal, but the news surrounding this potential deal has driven Alphabet's stock price up.

The stock isn't as cheap as it was just a few months ago, but with Alphabet's most recent quarter resulting in revenue growth of 16% and diluted earnings per share (EPS) growth of 35%, it doesn't necessarily need the TPU sales to be a successful company. However, if this adds another $10 billion in revenue each quarter once fully developed, it will make a noticeable impact on Alphabet's finances.

We'll learn more about potential TPU sales in 2026, but I think the stock is attractive enough as is to warrant buying now.

Broadcom

Alphabet isn't a chip company, and it needs help with developing TPUs, as it doesn't have the expertise needed to design these units for fabrication. That's where Broadcom comes in, as it has become a valuable partner for AI hyperscalers looking to design their own custom AI hardware. The computing hardware from Broadcom has the potential to outperform graphics processing units (GPUs) from Nvidia at a lower price point, but that comes at the cost of flexibility. Most of these computing units only see one type of workload their whole life anyway, so this flexibility is mostly wasted.

Alphabet isn't the only company Broadcom is working with. Broadcom has multiple clients it's partnering with to make their custom AI accelerators a reality, including OpenAI. It also has a mystery client that placed a $10 billion order for custom AI chips.

Broadcom is well positioned to take the market share over the next few years, and investors shouldn't be surprised that Broadcom's stock benefits as a result. With that in mind, I think it's a great buy heading into 2026.

Taiwan Semiconductor Manufacturing

Last, but certainly not least, is Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semiconductor is the world's leading chip fabricator, and has Broadcom and Nvidia among its vast client list. Because it supplies chips to all companies competing in the artificial intelligence arms race, it's a neutral party that benefits as long as there is increased spending.

With the AI hyperscalers all guiding for an increase in 2026 spending over already impressive 2025 levels, Taiwan Semiconductor is in an excellent spot to benefit from this rise. Nvidia believes that global data center capital expenditures will reach $3 trillion to $4 trillion annually by 2030. While that's a bold dollar figure projection, the trend is likely correct. As long as there's increased AI spending, Taiwan Semiconductor's stock will be a good one to own. That growth thesis looks to be on track heading into 2026, making it a top stock to buy in December.

Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.