Make no mistake. I think Nvidia (NASDAQ: NVDA) will be an excellent stock to own in 2026. It has strong tailwinds blowing in its favor and top-notch execution. However, putting all of your eggs in one basket is a disaster waiting to happen. So, investors need some alternative AI stocks to diversify a bit in the artificial intelligence (AI) space. Three stocks that I think can make for strong alternative investments to Nvidia are Taiwan Semiconductor (NYSE: TSM), Broadcom (NASDAQ: AVGO), and AMD (NASDAQ: ...

Key Points Broadcom is a leader in ASIC technology. As customers look to develop custom AI chips, the company has an enormous growth opportunity in front of it. 10 stocks we like better than Broadcom › Spending on artificial intelligence (AI) infrastructure is booming, but there is also a shift in the market. While Nvidia's graphics processing units (GPUs) continue to dominate the market, more and more large companies are turning toward developing AI ASICs (application-specific integrated circuits) ...

Core Viewpoint - The strong demand for artificial intelligence (AI) is leading investors to identify potential winners, with Alphabet positioned to dominate the future of AI alongside established semiconductor companies [1][2]. Company Overview - Alphabet has built a robust AI infrastructure, which is expected to enhance its market position as AI investments continue to grow [2][18]. - The company has seen a significant increase in its Google Cloud revenue, which is projected to exceed $50 billion annually, marking a shift from previous unprofitability [8][18]. Market Performance - Alphabet's stock is currently valued at $307.16, with a market capitalization of $3.7 trillion and a forward price-to-earnings (P/E) ratio around 28, indicating strong investor confidence [7][13]. - The stock has shown a price increase of 1.55% recently, reflecting positive market sentiment towards its operational performance and future growth potential [6][15]. AI Developments - Alphabet's Gemini, its own large language model (LLM), has gained over 650 million monthly active users, with search queries increasing threefold quarter over quarter [9][10]. - The company is also commercializing custom hardware through application-specific integrated circuits (ASICs), which have begun to gain traction with major clients like Apple and Anthropic [11][12]. Competitive Positioning - Alphabet's diverse ecosystem, which includes search, cloud computing, and consumer electronics, provides a competitive edge over other tech giants [16]. - The company is expected to benefit more from rising investments in AI infrastructure compared to singular chip designers or software developers [17][18].

Core Insights - Quantum computing stocks are gaining traction on Wall Street, with significant interest from both pure-play companies and major tech firms exploring quantum AI [1][2] - Alphabet has emerged as a key player in the quantum computing landscape, attracting substantial investments from high-profile institutional investors [2][6] Company Investments in Quantum Computing - Google Quantum AI leads Alphabet's quantum computing initiatives, focusing on scalable, error-correcting systems to tackle complex problems beyond current supercomputers [5] - The company has developed the Willow chip and released Cirq, a software toolkit for quantum algorithm research [5] Institutional Investment Trends - Notable investments in Alphabet include Stanley Druckenmiller's Duquesne Family Office acquiring 102,200 shares, Millennium Management increasing its stake by 66% with 1.4 million shares, and Citadel purchasing 1.2 million shares, raising its stake by 200% [6] - Warren Buffett's Berkshire Hathaway added 17.8 million shares worth approximately $4.3 billion to its portfolio during the third quarter [6] Broader AI Integration - Alphabet's business extends beyond internet services, integrating AI across various segments, including Google Search and Android devices, with its large language model, Gemini [7] - Google Cloud is rapidly growing and profitable, competing effectively with AWS and Microsoft Azure, with potential commercialization of custom chips (TPUs) [8][9] Market Position and Valuation - Alphabet's stock has seen significant appreciation, with a current market cap of $3.7 trillion and a forward price-to-earnings ratio of 29, indicating a compelling investment opportunity despite a high valuation [8][14] - The combination of Alphabet's established AI ecosystem and the potential of quantum computing positions the company uniquely in a competitive market [15]

Group 1: Company Developments - Elon Musk commented on Alphabet Inc.'s resurgence in the AI sector, highlighting its new hardware initiatives and dominance in the AI race [1] - Pieter Levels, a former critic of Google, invested over $1 million in Alphabet shares, citing a turnaround attributed to co-founder Sergey Brin's return [2] - Levels noted that Google is now leading in AI benchmarks and real usage, leveraging its proprietary tensor processing units and data advantages from platforms like YouTube and Google Images [3] Group 2: Market Performance - Google shares increased by 1.91% to close at $303.75, with a further rise of 0.47% overnight, while Tesla shares rose by 3.45% to $483.37, also up 0.43% overnight [6] - Tesla is recognized as a leading "physical AI play," focusing on integrating AI into physical systems such as autonomous vehicles and humanoid robots [6] Group 3: Strategic Insights - Musk emphasized the importance of hardware in the AI landscape, stating that Tesla aims to produce AI chips at higher volumes than all competitors combined [5] - Levels expressed confidence that the future of AI will be dominated by Google, Musk's xAI, and select Chinese firms, indicating a competitive landscape in AI chip development [4]

Core Insights - Redwire's stock has seen a significant increase of nearly 14% week-to-date, driven by news related to its business partners, Blue Origin and SpaceX, rather than any proprietary developments from the company itself [2][6]. Company Overview - Redwire specializes in providing services and equipment for space missions, positioning itself uniquely in the industry with established relationships with major players like Blue Origin and SpaceX [7]. - The company has a market capitalization of $1 billion, with a current stock price of $7.36, and has experienced a 52-week price range of $4.87 to $26.66 [7]. Industry Developments - Blue Origin and SpaceX are planning to develop AI-supporting data centers in space, which could create opportunities for Redwire to participate in these ambitious projects [3][5]. - Alphabet and Planet Labs are also entering the space sector with plans to launch AI-in-space initiatives by 2027, further indicating a growing interest in space-based technology [6].

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]

Group 1: Broadcom - Broadcom is positioned for strong growth in 2026, particularly in AI infrastructure, driven by its data center networking portfolio [3][6] - The company’s ASICs business, which focuses on custom chips for specific tasks, is expected to be a major growth driver, with partnerships leading to significant opportunities [5][6] - Broadcom has identified a potential $90 billion opportunity in fiscal 2027 from custom AI chip customers and has secured a $10 billion order from a fourth customer [6][7] Group 2: UiPath - UiPath is transforming into a key player in agentic AI, leveraging its expertise in robotic process automation (RPA) to manage both software bots and AI agents [9][10] - The company’s Maestro platform allows users to create AI agents and manage tasks efficiently, which is expected to reduce costs for companies [11] - With the return of its founder as CEO, UiPath has stabilized and is experiencing revenue growth, with a 16% increase last quarter and a 45% surge in adjusted EPS [12]

Core Insights - Quantum computing presents a significant opportunity for investors, particularly through established tech giants rather than pure plays [1][2][3] - Major tech companies are heavily investing in infrastructure to support AI and are also exploring quantum computing as a complementary technology [2][19] Company Summaries Alphabet - Alphabet is recognized as a leading opportunity among major AI stocks, with a diverse ecosystem that includes internet search, advertising, cloud computing, and custom chip design [6][19] - The company is investing in quantum computing through its quantum processor, Willow, which is currently used for simulations against supercomputers [9][10] - Alphabet's integration of AI across its services positions it well to commercialize quantum computing applications in the future [10][19] Nvidia - Nvidia is a key player in the AI movement, providing GPUs and software that are central to generative AI development [11][19] - The company is exploring quantum AI opportunities with products like NVQLink and an alternate version of CUDA for hybrid computing environments [13][14] - Nvidia's strategy focuses on bridging traditional and quantum computing rather than investing heavily in supercomputers [14][19] Amazon - Amazon's AI ecosystem mirrors that of Alphabet, with significant revenue from e-commerce, cloud computing, and advertising [16][19] - Amazon Web Services (AWS) is the largest cloud platform and is a primary source of AI growth for the company [17][19] - The company has developed its own quantum processing chip, Ocelot, and offers a quantum computing architecture called Amazon Bracket within AWS [18][19] Investment Themes - The analysis emphasizes that Alphabet, Nvidia, and Amazon have established successful AI businesses, allowing them to explore quantum computing without it being a core growth strategy [19][20] - AI is expected to drive growth for these companies in the coming years, providing a dual upside for investors as quantum applications are developed [20][21]

Group 1 - Broadcom Inc. is recognized as one of the 14 Best US Stocks to Buy for Long Term [1] - Susquehanna analyst Christopher Rolland raised the price target for Broadcom to $450 from $400, maintaining a Positive rating ahead of the earnings report expected on December 11 [2] - The new Google TPUv7 and increasing AI networking demand are anticipated to drive growth in Q3 and Q4, with a wider ASIC customer base expected to enhance performance in the second half of 2026 [2][3] Group 2 - Broadcom's significant growth opportunity lies in its ASIC business, which focuses on custom-made chips that are more efficient for specific tasks compared to general chips like GPUs [3] - The company has been involved in designing Alphabet's tensor processing units (TPUs) and is collaborating with OpenAI on custom AI chips, with plans to supply these chips starting in the second half of next year, potentially translating to $100 billion worth of chips annually by the end of 2029 [4] - Broadcom is a multinational semiconductor company that also specializes in infrastructure software products [5]