3 of the Best Artificial Intelligence (AI) Stocks to Buy for 2026

Are you worried that you've missed out on the opportunity to generate a great return from artificial intelligence (AI) stocks? There are still plenty of good and reasonably priced AI stocks you can add to your portfolio today. And many of them are already large, safe, and established players in tech.

Heading into 2026, three AI stocks that I think possess the most upside are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Taiwan Semiconductor Manufacturing (NYSE: TSM). Here's why it's not too late to invest in these three tech giants.

Image source: Getty Images.

Alphabet

It may come as a surprise to some that Alphabet is on this list. It is, after all, already one of the most valuable companies in the world. Its market cap of $3.7 trillion puts it not all that far behind the world's most valuable company, Nvidia, which is worth $4.3 trillion. Once a company gets that valuable, it becomes harder to keep the growth going.

The reason Alphabet still looks like a fantastic buy going into 2026 is that it can still go higher. For a while, investors were skeptical about its ability to continue to dominate in search, its core business, amid concerns that AI chatbots would steer users away from Google. And there may still be many skeptics out there, which is why Alphabet isn't the most valuable company in the world right now, which I believe is where it should rank given how massive its business is.

AI has enabled Alphabet to enhance Google Search and add value for creators on YouTube. But don't forget that it also has a rapidly expanding robotaxi business in Waymo. Its cloud business is expanding, and the company is also making its own chips.

Its operations are far more diverse than many other AI stocks out there, including Nvidia's. And yet, Alphabet's stock trades at a forward price-to-earnings (P/E) multiple of 28. That's modest in comparison to the Technology Select Sector SPDR ETF where the average forward earnings multiple is just under 30. Alphabet should command a far higher premium than where it's at today, which is why, even at its current valuation, it can be a no-brainer buy heading into next year.

Amazon

Another obvious pick looks to be Amazon, whose valuation is $2.4 trillion, which remains firmly behind both Nvidia and Alphabet. Over the past 12 months, Amazon's stock price has actually declined by 4%. This is another example of an AI stock that may be worthy of a higher valuation.

The company is known primarily for its online marketplace and its cloud business, Amazon Web Services (AWS), which is a terrific growth driver. But in addition to that, Amazon also has a robotaxi business of its own, Zoox. It's not as big or popular as Waymo, but its toaster-designed vehicles look sleeker and more modern and could be more ideal for operating as robotaxis.

Amazon has also been expanding its same-day delivery of fresh groceries to more markets recently, which can steal some market share from rival Walmart. Amazon has done a great job of predicting and anticipating purchases on its online marketplace, and replicating that success with groceries could make that an underrated opportunity where its AI capabilities can shine and give it an advantage.

Given the diversification of Amazon's business and plentiful growth opportunities, this is a stock that should also be worth more; it trades at a forward P/E of 27.

Taiwan Semiconductor Manufacturing

In contrast to the other tech giants listed above, there's Taiwan Semiconductor Manufacturing, or TSMC as it is also known. Its business is not as diversified, and that works to its advantage. TSMC makes chips for tech companies, including Nvidia. Its low-cost operations make it difficult for Intel and other rivals to compete. The Taiwan-based company plays an important role in the AI world due to the industry's dependence on its foundry.

In its most recent quarterly report, for the quarter that ended on Sept. 30, TSMC's revenue rose by 30%, and its diluted per-share profit jumped by 39%. Not only has its growth been impressive, but it has incredibly strong operating margins of around 50%.

The stock has rallied more than 40% this year and has a $1.5 trillion market cap. But with a forward P/E of just under 24, it's the cheapest stock on this list.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Walmart. The Motley Fool has a disclosure policy.