2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $5 Trillion in 2026, According to Wall Street

Group 1: Alphabet - Alphabet is the largest adtech company globally, leveraging Google Search and YouTube for consumer data and engagement [4] - The company is adapting to the AI landscape with generative AI features like AI Overviews and AI Mode, leading to increased query volumes and a new application, Gemini, reaching 650 million monthly users [5] - Alphabet's Google Cloud is the third largest public cloud provider, gaining market share due to AI strength, with a 1 percentage point increase year-to-date [6] - In Q3, Alphabet reported a 16% revenue increase to $102 billion and a 35% rise in GAAP earnings to $2.87 per diluted share, driven by strong AI infrastructure demand [7] - Wall Street estimates an 8% annual earnings growth for Alphabet through 2026, with a potential market cap of $5 trillion [8] - Morgan Stanley's bull case target price for Alphabet is $415 per share, indicating a 35% upside from the current price of $307 [9] Group 2: Microsoft - Microsoft is the largest enterprise software company, with a strong presence in business intelligence, cybersecurity, and enterprise resource planning [10] - The company has developed generative AI copilots, with over 150 million monthly active users across its applications, up from 100 million [11] - Microsoft Azure is the second largest public cloud, gaining market share despite capacity constraints, and plans to double its data center footprint in the next two years [12] - In Q3, Microsoft reported an 18% revenue increase to $78 billion, with a 23% rise in non-GAAP earnings to $4.13 per diluted share [13] - Wall Street estimates a 16% annual earnings growth for Microsoft through fiscal 2027, with a potential market cap of $5 trillion next year [14]