2 Magnificent Artificial Intelligence Stocks to Buy in 2026

Group 1: Alphabet - Alphabet has experienced significant growth, rising over 80% since July 1, 2025, driven by positive court case outcomes, advancements in AI, and the potential launch of a new business unit [3] - The company has shifted from being perceived as a laggard in AI to a strong competitor, with OpenAI acknowledging Alphabet's advancements and resources [4] - Alphabet's cost efficiency is attributed to its tensor processing units (TPUs), which outperform Nvidia's GPUs for specific workloads, allowing for a larger and cheaper computing infrastructure [6][7] - There are discussions between Meta Platforms and Alphabet regarding the sale of TPUs, which could create a new revenue stream and significant growth opportunities for Alphabet [8] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the leading provider of chips for AI, with a strong revenue generation and consistent growth each quarter [10][11] - The demand for TSMC's chips is expected to remain high as AI spending continues to rise, with major AI companies announcing record capital expenditures in 2026 [13] - Nvidia projects that global capital expenditures on data centers could reach $3 trillion to $4 trillion by 2030, indicating a sustained need for chips and a positive outlook for TSMC's business [14]