3 Phenomenal Artificial Intelligence (AI) Stocks to Buy Before They Report Earnings

As the calendar reaches mid-July, earnings season is ramping up. Over the next few weeks, investors will hear from some of the most important companies in the market, and it could set the tone for the next few months.

I think the news over the next few weeks will be mostly positive for artificial intelligence (AI) investors and signal a trend toward increased AI spending for the remainder of 2026 and into 2027. If that's the case, there are several stocks worth buying now before they report earnings.

Three at the top of my list are Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Taiwan Semiconductor Manufacturing (NYSE: TSM). Each of these has a different reason for excitement, and investors should at least pay attention to all of them, if not buy shares beforehand in anticipation of a post-earnings spike.

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1. Microsoft

Microsoft stock has had an atrocious 2026, falling nearly 21% from year-end levels. Its first two earnings reports delivered in 2026 were poorly received, but I think the market will come around this time.

Microsoft's earnings weren't even remotely bad during its last announcements, as it announced incredible AI growth and a strong cloud computing performance. In fiscal 2026's Q3 (ended March 31, 2026), revenue rose 18% year over year, and earnings per share (EPS) increased 23%. That would normally earn Microsoft a premium valuation compared to the market.

And yet, Microsoft's stock performance actually trails the S&P 500 (SNPINDEX: ^GSPC), with the S&P 500 trading at 21.7 times forward earnings, while Microsoft trades at only 20 times forward earnings.

If Microsoft can report more of the same as it did in the last quarter, I think the market will come to its senses and realize this is a screaming deal, and investors will happily buy it following earnings. That makes now the perfect time to buy Microsoft stock, as this deal won't last forever.

2. Meta Platforms

The market likes Meta Platforms' stock even less, as it trades for 18.7 times forward earnings despite growing at a 33% pace last quarter. While investors will want to know how Meta's advertising business is doing and how its AI progress is going, what's stealing the spotlight right now is Meta's plans to launch a cloud computing product.

This is what separates Meta from the other AI hyperscalers: they all have cloud computing businesses that help fund their AI build-out. If investors get positive confirmation of Meta's impending cloud business launch, the stock could pop, as it would have a lot of excess capacity to rent out.

Regardless of what Meta does with a cloud business, the stock is cheap, and the business is growing at a solid pace. I think that makes Meta a compelling buy at these levels, as it could easily see a multi-digit pop if it unveils a new cloud computing platform during its earnings call.

3. Taiwan Semiconductor Manufacturing

Last is Taiwan Semiconductor Manufacturing, aka TSMC, which reports earnings on July 16. TSMC is the primary chip foundry that nearly every big firm uses, and it has an excellent pulse on the health of AI chip demand. If it comes out and says chip demand is growing and it cannot meet it, the market may rally behind it. I expect that to be the case, as there have been no signs of AI hyperscalers changing course.

TSMC is the most expensive stock in this trio, trading at 27.5 times forward earnings -- where Microsoft used to trade.

Data by YCharts.

Although this is expensive, I think it's appropriate considering Taiwan Semiconductor's market position, dominance, and superior execution to others in its industry. Taiwan Semiconductor Manufacturing still has multiple years left of growth if the AI build-out is truly just getting started, and I'd expect management to reaffirm those projections during its quarterly call.

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