How to Invest in AI Stocks Amid 2026 Bubble Panic: Skip NVIDIA's Crash Risk?

Unless you’ve been living under a rock, you’ve definitely heard of AI. But you may have also heard warnings that the AI industry is in an investment bubble, and it’s best to just avoid it.

That’s a fair concern, especially with headlines dominated by a handful of soaring tech stocks and wild predictions. But avoiding AI entirely could mean missing one of the biggest investment cycles of this decade.

The key isn’t to avoid AI entirely… it’s to make the right investments.

In this guide, we’ll show you how to gain exposure to AI the safe way, without chasing hype or risking it all on overvalued stocks.

Why do some investors think we’re in an AI bubble?

It’s easy to see why some investors are nervous. In the last 18 months alone, several major AI stocks have surged by triple-digit percentages. Some companies with little to no profit are now trading at price-to-earnings multiples once reserved for the world’s most dominant businesses.

We’ve seen this before.

In the late 1990s, the dot-com bubble convinced investors that any company with a website was a guaranteed success. Billions flooded into unproven startups, stock prices soared, and when reality set in, the NASDAQ crashed nearly 80%, wiping out years of gains. Most of those dot-com companies never came back. The ones that survived, Amazon, Google, and a small handful of others, went on to dominate the internet economy. But they were the exception, not the rule.

This is the fear around AI right now.

Yes, AI is real. Yes, it will reshape the global economy. But not every company claiming to be an “AI leader” will survive. Some are overpriced. Some are unprofitable. And some are simply using AI as a buzzword to attract investor money.

So how do you invest in AI without trying to time the market?

You take a different approach, one that doesn’t rely on predicting which individual stock will win or guessing when prices will crash.

How to invest in AI stocks… without worrying about timing the market

One of the most safest ways to invest in a booming industry, without needing perfect timing, is to use the “pick and shovel” strategy.

The idea comes from the 1800s gold rush.

Thousands of people rushed into gold mining, hoping to strike it rich. Most failed. But the businesses selling picks, shovels, jeans, and supplies made steady profits regardless of whether any miner found gold.

Levi Strauss, for example, didn’t mine gold, he sold durable clothing to miners.  Hardware stores sold picks and shovels (which is where the name comes from). Railroads made money transporting equipment and ore. These businesses made steady profits without needing to gamble it all on striking gold.

The same principle applies today.

You don’t need to guess which AI startup will dominate. You can simply invest in the companies supplying the tools and infrastructure behind the AI boom. These include chipmakers, data center providers, and power utility firms.These “picks and shovels” benefit no matter who wins the AI arms race. As demand for AI accelerates, so too will the demand for computing power, storage, energy, and connectivity accelerate.

Best of all, these companies tend to be more stable, more established, and less vulnerable to hype cycles. They don’t rely on unproven technology or viral media attention. They just sell the tools everyone else depends on.

So what are my choices for the top “picks and shovels” AI companies today?

Here are a few of my favourite:

1. AI Chip Companies – The Tech Behind AI

Let’s start with the most essential layer of AI infrastructure: the chips.

Every AI model runs on specialized chips designed for speed, scale, and efficiency. Without them, none of this is possible, which makes chip companies the original “picks and shovels” of the AI economy.

Unlike speculative software startups, chipmakers provide the raw computing power AI depends on. The more AI grows, the more chips are needed. It’s a simple equation, and that’s why these companies remain at the core of any prudent AI portfolio.

NVIDIA Corp (NASDAQ: NVDA)

NVIDIA is the undisputed leader in AI chips. Its graphics processing units (GPUs) power everything from data centers to autonomous vehicles to cutting-edge language models. The company’s CUDA platform has become the software standard for training and running AI models, giving it a powerful moat.

AI revenue now makes up a significant portion of NVIDIA’s business, and it's growing fast. While the stock has already surged, NVIDIA continues to dominate in both hardware performance and developer adoption. As AI demand rises globally, NVIDIA’s position remains foundational to the entire ecosystem.

Advanced Micro Devices Inc (NASDAQ: AMD)

Advanced Micro Devices (AMD) is NVIDIA’s closest challenger. While it entered the AI race later, AMD is quickly gaining ground with its MI300 chips, designed to compete directly with NVIDIA’s flagship products. Major cloud providers are already integrating AMD’s hardware into their AI infrastructure.

What makes AMD compelling is its proven ability to take market share in high-performance computing. It also tends to offer more attractive pricing, making it a favorite for companies seeking alternatives. For investors looking for growth potential outside of NVIDIA, AMD is a strong contender.

Intel Corp (NASDAQ: INTC)

Intel has long been a dominant player in CPUs, but it’s now investing heavily in AI. With the rollout of its Gaudi series chips, targeted specifically at data centers and AI training, Intel is positioning itself for a comeback in the high-performance space.

What sets Intel apart is its manufacturing footprint and vertical integration. While it’s still early in reclaiming lost ground, Intel’s ability to scale chip production and its focus on affordability could help it carve out a valuable share of the AI infrastructure market in the years ahead.

2. AI Power Companies: The Backbone Of AI

AI needs energy. Like, a lot of energy. Massive data centers filled with high-performance chips require enormous amounts of reliable power. AI already uses as much energy as a small country, with some estimates putting its energy consumption on the same level as Japan by 2030.

That’s why power companies are becoming some of the best “pick and shovel” beneficiaries of the AI boom. Here are my three favourite:

GenusPlus Group (ASX: GNP)

AI can’t grow without stronger grid infrastructure, and that’s exactly what GenusPlus builds.

This Perth-based engineering company specializes in high-voltage power lines, substations, and grid connections, the physical infrastructure that keeps Australia’s electricity network running. As AI data centers continue to expand across the country, GenusPlus plays a critical role in connecting those sites to the grid.

What makes it attractive to investors is the stability of its revenue model. Much of its work is backed by multi-year contracts with utilities and government clients, often with inflation-linked pricing. It may not grab headlines, but GenusPlus quietly builds the energy backbone that AI will rely on for decades.

MasTec Inc (NYSE: MTZ)

MasTec is a U.S.-based infrastructure engineering company focused on energy, utility, and communications systems. It builds high-voltage power lines, substations, and renewable energy facilities, exactly the kind of projects required to support expanding AI infrastructure.

As AI data centers demand more grid connectivity and power reliability, MasTec is well-positioned to benefit. It already works with major utilities and government agencies, and much of its revenue is backed by multi-year contracts. MasTec also plays a role in clean energy, which aligns with long-term sustainability and grid upgrade goals.

Talen Energy Corp (NASDAQ: TLN)

Talen Energy owns and operates large-scale power generation assets across the United States. What makes it especially interesting for AI investors is its recent focus on building power-adjacent data centers near its plants, a strategy designed to reduce latency and energy costs.

This “energy plus AI” model could become increasingly important as the industry seeks more efficient, integrated solutions. Talen’s access to reliable power and physical space gives it a unique edge in meeting AI’s future infrastructure needs. If it succeeds, it may help define the next generation of AI-optimized power facilities.

3. AI Data Centre Companies: The Real Estate Behind The Revolution

Every AI model needs a home. And not just any home, a secure, power-dense, ultra-connected facility designed to handle extreme computing loads.

That’s what makes data center operators one of the smartest “pick and shovel” investments in the AI boom. These companies provide the physical infrastructure where AI lives: servers, cooling systems, security, and high-speed fiber connections. 

With demand for AI compute skyrocketing, the companies hosting those workloads are quietly becoming some of the most important landlords in tech. Here are my top picks:

Macquarie Technology Group (ASX: MAQ)

Macquarie Technology Group is one of Australia’s top data center operators, providing mission-critical infrastructure for cloud, cybersecurity, and AI deployments. Its facilities serve enterprise and government clients, exactly the kind of organizations now racing to integrate AI.

Unlike speculative AI plays, Macquarie delivers consistent results. It has reported 20 consecutive half-years of operating income growth, with its latest update showing 6% EBITDA growth. Its recurring revenue model, backed by long-term clients and expanding digital demand, positions it well for AI-driven growth. As Australian AI adoption increases, Macquarie stands to benefit from the rising demand for secure, high-density computing environments.

Equinix Inc (NASDAQ: EQIX)

Equinix is the world’s largest data center REIT, with over 270 facilities across six continents. Its unique role? Acting as a central hub where major cloud providers, enterprises, and AI leaders physically connect.

What makes Equinix a “pick and shovel” powerhouse is its network effect. Its data centers host connections between AWS, Google Cloud, Microsoft Azure, Nvidia, Oracle, and others, making it nearly impossible to replace. Products like Equinix Fabric provide the low-latency data exchange AI workloads demand.

Equinix’s Q3 2025 earnings showed strong momentum, including 10% EBITDA growth and rising bookings. Its infrastructure quietly powers the global AI race.

Digital Realty Trust Inc. (NYSE: DLR)

Digital Realty is one of the world’s largest data center REITs, specializing in high-capacity infrastructure built for cloud giants like Amazon, Google, and Microsoft. While Equinix dominates interconnection, Digital Realty leads in massive, power-intensive facilities needed to run AI at scale.

Its PlatformDigital suite spans over 300 global sites, offering ready-to-deploy and custom-built data centers with high-density cooling and power capabilities, ideal for AI workloads. The company is also innovating with its AI-focused Innovation Lab, helping clients test deployments before scaling.

Strong backlog growth and positive forward guidance suggest rising demand. Digital Realty provides the digital real estate AI needs to grow.

You Do Not Need to Predict the Winner to Profit From AI 

AI is here and it’s not going away. But like every major technology shift, investment bubbles can form around the hype. The key to profiting even in a bubble is not by chasing the latest hype-driven headlines, but by owning the essential infrastructure behind the trend.

Chipmakers, power suppliers, and data center operators are the quiet engines driving AI forward. They’re the modern-day picks and shovels, generating revenue no matter who the next Nvidia or Google might be.

If you want long-term exposure without speculative risk, that’s where to start. And with platforms like mitrade.com, you can access these stocks easily and build a portfolio focused on growing your wealth.