5 Stocks to Buy if AI Investing Comes Back Into Style
Key Points
Chipmakers Nvidia and Broadcom continue to put up monster growth numbers.
Taiwan Semiconductor is benefiting from the massive AI infrastructure buildout.
SoundHound AI and Nebius are two smaller companies with immense upside.
- 10 stocks we like better than Nvidia ›
Artificial intelligence (AI) investing has been a bit of a weak point in the market to begin 2026. This shouldn't come as a huge surprise to investors, as sectors tend to rotate in and out of favor over the years. However, this doesn't mean that investors should write off the AI sector. In fact, there are early signs that it's starting to come back into favor.
Solid Q1 earnings with bright outlooks could be what this sector needs to kick-start it back into high gear, and if it does, I think these five stocks will benefit more than any others.
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1. Nvidia
Nvidia (NASDAQ: NVDA) has been the top AI investment for some time, although it has failed to produce any meaningful returns over the past few months. That doesn't mean Nvidia has been dormant; in fact, it has been doing incredibly well.
It has reported accelerating revenue growth over the past few quarters and expects further acceleration in 2026. During its past quarter, Nvidia delivered 73% revenue growth. For the next two quarters, Wall Street analysts expect 79% growth in Q1 and 85% growth in Q2. Considering that Nvidia is the world's largest company, that's an unreal growth projection.
NVDA PE Ratio (Forward) data by YCharts
With the stock trading for less than 23 times forward earnings, it looks like an absolute bargain and is primed to soar over the next few months.
2. Broadcom
Broadcom (NASDAQ: AVGO) is another computing unit maker that's benefiting from the same tailwinds as Nvidia. However, it has a bit of a higher premium, trading at 33 times forward earnings. The reason for the increased optimism is its product line.
Instead of a broad-purpose GPU like Nvidia makes, Broadcom is partnering with AI hyperscalers to produce its own custom AI chips. These chips can deliver better performance at a lower cost when the workload is properly configured, which is an attractive option. Broadcom expects these computing units to generate more than $100 billion in annual revenue by the end of 2027, which is at least triple what they generate now.
That's why investors are so bullish on Broadcom's stock, and if AI investing comes back in style, it's slated for even more upside.
3. Taiwan Semiconductor
Neither Broadcom nor Nvidia could do what they currently do without Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC, as it's also known, is the world's leading chip foundry and is an integral part of the AI supply chain. As long as there is heightened AI spending, Taiwan Semiconductor will continue to be an excellent investment.
TSMC offers more information to investors than the average company and informs investors of its monthly revenue. In March, revenue climbed 45% year over year -- the fastest pace over the first three months. This shows that the AI build-out is alive and well, and Taiwan Semiconductor will continue to be a top way to invest in it.
4. SoundHound AI
SoundHound AI (NASDAQ: SOUN) may look like a fallen stock down around 70% from its all-time high, but I think now is the perfect time to buy. There was a lot of hype baked into SoundHound AI's stock over the past few years, and that has slowly been squeezed out.
The company has still done well, with revenue rising 58% year over year thanks to demand for its software, which combines generative AI and audio recognition. I think SoundHound AI's stock will turn around if it continues posting excellent results as it did during Q4, making it a good candidate for maximum upside, considering how much it has sold off.
5. Nebius
Last is Nebius (NASDAQ: NBIS). The neocloud company has done quite well as an investment. It's currently at an all-time high and has risen over 400% since 2025 began. But it's just getting started.
A neocloud company focuses on AI hardware, and Nebius is undergoing massive expansion. It is massively increasing its data center footprint, leading to rapid growth across the business. Wall Street analysts expect 522% revenue growth in 2026 and 195% in 2027. That's monster expansion, and makes investors bullish on the stock. If Nebius can continue this build-out rate and find customers to use the new computing resources, then Nebius could continue to be an incredible investment.
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Keithen Drury has positions in Broadcom, Nebius Group, Nvidia, SoundHound AI, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Nvidia, SoundHound AI, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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