I Own Nvidia, Microsoft, and Meta. Here's What I'm Doing With All 3 Right Now.

Artificial intelligence (AI) has been a tsunami propelling many tech stocks skyward in recent years, including Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and, of course, Nvidia (NASDAQ: NVDA). The picture has changed in 2026.

AI is no longer seen as the tide that raises all boats. There will be losers in the artificial intelligence era, causing many stocks to fall across industries such as cybersecurity and software-as-a-service. On top of that, Wall Street is questioning the justification for massive capital expenditures by tech companies.

Consequently, shares of Nvidia are down about 7% in 2026 through the week ending March 20, while Meta fell 10%, and Microsoft dropped a staggering 21% in that time. Given the shifting AI current, what strategy should investors consider? As a shareholder in Microsoft, Meta, and Nvidia, here's my plan for navigating these holdings.

Image source: Getty Images.

Addressing Microsoft's share price drop

I invested in Microsoft, Meta, and Nvidia based on the belief that these companies will deliver excellent returns over the long run. I still believe so despite Wall Street souring on the stocks in early 2026.

In the face of declining share prices, my strategy is to maintain my holdings and, because of its big drop, purchase more Microsoft. Many reasons exist for this approach. Let's start with why Microsoft stock is a buy.

Wall Street became disgruntled with the tech conglomerate for factors such as its capital expenditures (capex). Microsoft announced capex of $37.5 billion in its fiscal second quarter, ended Dec. 31, a staggering 66% year-over-year increase. About two-thirds of the cost went to hardware to support AI, such as the graphics processing units (GPUs) sold by the likes of Nvidia.

I see the capex cost as a key investment in Microsoft's future growth. The spending is intended to expand its cloud computing capacity, which is needed to meet customer demand for AI. This demand is illustrated in the 110% year-over-year growth to $625 billion in Microsoft's Q2 remaining performance obligations among commercial customers.

The tech titan is a buy because its share price valuation is at a low point for this past year, as illustrated by its price-to-earnings (P/E) ratio of 23.

Data by YCharts. PE Ratio = price-to-earnings ratio.

Microsoft posted fiscal Q2 2026 sales of $81.3 billion, up 17% year over year, with its cloud computing revenue contributing 51.5 billion. This suggests its AI business is doing well, and with its drop in valuation, now is a good time to pick up shares.

A look at Meta

Wall Street's concerns over Microsoft's capex costs are mirrored on the consumer side by Meta. The social media giant forecasted its capex to reach between $115 billion and $135 billion in 2026, up from $72.2 billion in 2025.

Like Microsoft, Meta is investing to capture AI demand, as CEO Mark Zuckerberg expressed by stating, "We are now seeing a major AI acceleration. I expect 2026 to be a year where this wave accelerates even further on several fronts."

Meta's fourth-quarter results are proof of its dominance. Q4 revenue rose an impressive 24% year over year to $59.9 billion, helped by growth in both daily active users and the average price per ad.

The company sees AI as the means to engage its audience further by automatically creating content personalized to each user. As people spend more time on Meta apps, this translates into higher advertising revenue for the company. Anytime a user engages with or shares an ad, Meta makes money.

With its business performing well and AI poised to drive further growth, Meta is a stock to keep.

Why Nvidia is a great stock

Perhaps no stock excites me more than Nvidia. Its visionary founder and CEO, Jensen Huang, has correctly predicted the computing industry's evolution and created products to meet future needs, starting with GPUs, the computer chips powering AI.

Huang believed GPUs were ideal for artificial intelligence and hand-delivered the world's first AI supercomputer to OpenAI. He anticipated the rise of AI factories as part of a new Industrial Revolution. The capex spending by Microsoft and Meta demonstrates that this prediction has come to pass.

Now, Huang forecasts AI inference, the process where software makes decisions, will serve as the next tech tidal wave. For technologies such as self-driving cars and robotic surgeons to exist, the AI operating these machines must execute inference on the fly.

To facilitate this, Nvidia's latest GPU, Vera Rubin, is designed specifically for inference. It allows for self-evolving AI agents to operate independently.

Customers are already buying. Huang estimated orders for Nvidia GPUs will reach $1 trillion by the end of 2027. This suggests the AI inference era could be bigger than the sales Nvidia is already producing. Revenue for its 2026 fiscal year, ended Jan. 25, came in at an all-time high of $215.9 billion, a substantial jump up from the previous year's record $130.5 billion.

But Wall Street was downbeat on Nvidia stock. AI tech is evolving so fast that predicting future AI winners and losers is difficult, hence the sell-off in sectors such as cybersecurity.

Even so, I've learned it's unwise to bet against Huang's computing industry insights. That's why Nvidia is a stock to buy and hold for the long term as the AI tidal wave continues to rise.

Robert Izquierdo has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.