Key Points Nvidia's dominance in the computing world is coming into question. Tech giant Alphabet might start selling a product to rival Nvidia's. Its custom TPUs could replace Nvidia's GPUs in some applications. 10 stocks we like better than Alphabet › Nvidia is the world's largest company at about a $4.6 trillion market cap. It has risen to these lofty heights thanks to huge data centers focused on artificial intelligence (AI). Nvidia is projected to have another incredible year in 2026, so knoc ...

Core Viewpoint - The artificial intelligence megatrend is expected to be the primary driver for tech stocks as the market approaches 2026, despite various economic challenges [1]. Group 1: Portfolio Management - December is a crucial time for portfolio review and adjustments, including rebalancing and tax loss harvesting, with technology and AI remaining key sectors for investment [2]. Group 2: Key AI Stocks - Three recommended AI stocks for investment are Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing [3]. Group 3: Alphabet - Alphabet is positioned to be a leading AI stock in 2026, having navigated legal challenges related to antitrust issues while maintaining its competitive advantages in search and advertising [4][6]. - The company generated $74.2 billion in advertising revenue in Q3, which constitutes over 70% of its total revenue, alongside $15.2 billion from Google Cloud [7]. - Alphabet is also expanding into data center architecture with its tensor processing units (TPUs), which are being leased to cloud clients and could become a significant profit center [8]. Group 4: Nvidia - Nvidia remains a dominant player in the AI processor market, with its data center sales contributing $51.2 billion to its total revenue of $57 billion in Q3 of fiscal 2026 [10]. - The company has established partnerships with major tech firms and is expected to generate $212.8 billion in revenue for the current fiscal year, with a forecast of $316 billion for 2027 [12][13]. Group 5: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing Company (TSMC) is the largest chip foundry globally and is crucial for producing advanced AI chips for companies like Alphabet and Nvidia [14]. - TSMC is investing $165 billion to expand its operations in the U.S., with Q3 revenue of $33.1 billion, reflecting a 30% increase year-over-year, and net income of $15.1 billion, up by 39% [17].

Nvidia's stock has been weak over the past month, but that could change in 2026.Predicting winners in the artificial intelligence (AI) realm over the past few years has been fairly easy. Just pick a stock associated with AI, and chances are you'll have beaten the market. While that's a vast oversimplification, choosing a stock like Nvidia (NVDA 0.59%) or Palantir Technologies, both recognized leaders in their realm, has resulted in market-beating stock returns.However, after so many years of great returns, ...