Prediction: These 5 Stocks Will Be the Best Performers of 2026
Key Points
AI spending is expected to grow through 2030.
Several stocks are nearing recent low valuation marks.
- 10 stocks we like better than Broadcom ›
Although we're one-fourth done with 2026, there are still plenty of stocks that are set up to deliver monster returns throughout the last three quarters of the year. Most of these stocks have had a poor start to the year, but I think they are slated for a rebound, especially if we get some resolution in the Iran conflict.
I think these five will be some of the best stocks to invest in throughout the rest of 2025. If you don't own shares already, now is the time.
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1. Broadcom
Broadcom (NASDAQ: AVGO) is first on my list. The growth it will be generating by the end of the year will be nothing short of incredible, and it's all thanks to its custom artificial intelligence (AI) chips. These chips are becoming viable alternatives to Nvidia (NASDAQ: NVDA) chips in some applications, and Broadcom's management team expects this product lineup to generate in excess of $100 billion in annual sales by the end of 2027. For reference, the division that these chips are accounted for produced a mere $8.4 billion during its latest quarter.
Broadcom's stock is going to catch fire later this year, and I think now is the perfect time to position your portfolio accordingly.
2. Nvidia
Nvidia is the old AI stalwart that just isn't going away, and I doubt it ever will. The demand for AI computing chips is just too high, and demand for these chips is far higher than Nvidia's capability to produce them. Furthermore, Nvidia continues to launch new chip architectures that dramatically improve upon legacy hardware, making the upgrade from old hardware to newer hardware worth it.
Despite projections for data center growth to extend through 2030, Nvidia's stock trades for just 20.2 times forward earnings. That's a dirt cheap price tag that has seldom been available for Nvidia's stock since the AI race kicked off, making right now an excellent time to buy shares.
3. Microsoft
Speaking of perfect buying opportunities, Microsoft (NASDAQ: MSFT) is also an unbelievable bargain right now. From a trailing price-to-earnings (P/E) perspective, Microsoft is nearly the cheapest it has been over the past decade.
MSFT PE Ratio data by YCharts.
Microsoft isn't going anywhere, and this sell-off has presented a rare buying opportunity for one of the world's most prominent companies. It's also a leading AI facilitator, making it relevant in today's environment.
4. Taiwan Semiconductor
None of the AI advancements are possible without Taiwan Semiconductor (NYSE: TSM). Taiwan Semiconductor is the world's largest chip foundry, and also has the best technology. It has delivered excellent growth and has deep partnerships with many of the major tech companies, including Apple and Nvidia.
Taiwan Semiconductor believes it is on a strong multi-year growth trajectory, with its revenue slated to grow at around a 25% compounded annual growth rate between 2024 and 2029. We've only experienced the first two years of that projection, meaning Taiwan Semiconductor has plenty of growth left. Furthermore, with the amount of money expected to be spent on AI, Taiwan Semiconductor is a great way to play this space.
5. Nebius
Nebius (NASDAQ: NBIS) is a neocloud company that is focused on providing its clients with everything they need to train and run AI models. Nebius has signed some monster deals with Meta Platforms and Microsoft, but it's popular among smaller AI developers as well.
Nebius expects its annual run rate to expand from $1.25 billion at the end of 2025 to $7 billion to $9 billion by the end of 2026. That kind of growth is unbelievable, and it's something that I want to be a part of. If Nebius can deliver on this projection and guide for similar growth next year, the stock could skyrocket by the end of 2026, making it the best performer on this list.
Should you buy stock in Broadcom right now?
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Keithen Drury has positions in Broadcom, Meta Platforms, Microsoft, Nebius Group, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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