Hyperscalers, including Amazon and Microsoft, are committing over $600 billion to AI infrastructure projects. This massive investment fuels strong growth predictions for key players like Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Applied Materials through 2026. Nvidia, a leading chip designer, has already secured over $500 billion in revenue commitments for its Blackwell and upcoming Rubin systems, with the Rubin system set to launch in late 2026.
TSMC, a crucial chip manufacturer, anticipates its overall revenue to grow by 30% in 2026, with AI chip revenue expected to increase even faster through 2029. Applied Materials, a top US semiconductor equipment supplier, benefits significantly from the rising demand for advanced logic chips and high-bandwidth memory (HBM). Micron Technology also projects substantial growth, with analysts predicting its market cap could reach $1 trillion by the end of 2026, driven by soaring AI-fueled demand for memory chips. Data centers are expected to consume 70% of memory chips produced this year.
Beyond core chipmakers, companies like Cloverleaf Infrastructure are attracting significant interest for their role in securing land and large-scale electricity, a major challenge for AI expansion. Cloverleaf, which raised $300 million, is pursuing projects totaling 10 to 15 gigawatts of power capacity. Other firms benefiting from the AI boom include Super Micro Computer for high-performance servers, Arista Networks for ultra-fast networking, Vertiv Holdings for cooling and power management, and Synopsys for electronic design software. Celestica has also increased its 2026 revenue outlook due to strong AI data center demand.
In the software and services sector, Wall Street analysts identify The Trade Desk and Datadog as undervalued AI stocks, with potential upsides of 196% and 112% respectively. The Trade Desk uses AI for digital advertising, while Datadog offers AI-powered monitoring and security. SoundHound AI, specializing in voice control technology, shows growth potential with a billion-dollar contract backlog. However, the AI software market faces new challenges as buyers become more cautious, taking longer to decide on purchases compared to the booming sales of last year.
Apple is making significant moves in AI, with its stock rising on plans for new AI-powered devices, including AirPods, smart glasses, and a Siri-powered pendant, alongside a product launch on March 4 for new Macs. Meanwhile, investment firms like TPG are strategically adapting, with CEO Jon Winkelried forming an AI taskforce in late 2024 to evaluate AI's impact and develop best practices for its private equity strategies, focusing on companies that benefit from AI.
Key Takeaways
- Hyperscalers like Amazon and Microsoft plan to invest over $600 billion in AI infrastructure projects.
- Nvidia has secured over $500 billion in revenue commitments for its Blackwell and Rubin AI systems, with Rubin launching in late 2026.
- TSMC expects 30% revenue growth in 2026, with AI chip revenue growing even faster through 2029.
- Micron Technology is projected to reach a $1 trillion valuation by the end of 2026, driven by AI-fueled demand for memory chips, especially HBM.
- Cloverleaf Infrastructure, specializing in securing land and electricity for data centers, has raised $300 million and is pursuing 10-15 gigawatts of power capacity projects.
- Apple is developing new AI-powered devices, including AirPods, smart glasses, and a Siri-powered pendant, alongside new Mac computers.
- The Trade Desk and Datadog are considered undervalued AI stocks, with analysts predicting potential upsides of 196% and 112% respectively.
- Companies like Super Micro Computer, Arista Networks, Vertiv Holdings, and Synopsys are benefiting from the expanding AI infrastructure ecosystem.
- AI software sales face new challenges as corporate buyers become more cautious and take longer to commit to purchases.
- TPG established an AI taskforce in late 2024 to evaluate AI's impact and develop investment strategies for its $224 billion in assets.
Top AI Stocks to Watch in 2026 Include Nvidia and TSMC
Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Nebius Group are predicted to be top AI stocks in 2026. Nvidia, a leading chip designer, expects rapid growth with plans to sell chips to China again. TSMC, a crucial chip manufacturer, anticipates significant revenue increases from AI-related chips through 2029. Nebius Group, an AI-focused company, projects its annual run rate to jump from $1.25 billion in 2025 to $7 billion to $9 billion this year. These companies benefit from massive AI spending by major players.
Nvidia TSMC and Applied Materials Lead AI Stock Growth in 2026
Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Applied Materials are expected to show strong growth in 2026. Major tech companies plan to invest over $600 billion in capital expenditures, mostly for AI infrastructure. Nvidia has over $500 billion in revenue commitments for its Blackwell and Rubin systems, with the Rubin system launching in late 2026. TSMC, a key chip manufacturer, expects 30% revenue growth in 2026 and high growth for AI chips through 2029. Applied Materials, a top US semiconductor equipment supplier, benefits from increased demand for advanced chips and packaging.
Nvidia TSMC and Applied Materials Show Strong AI Momentum in 2026
Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Applied Materials are predicted to have strong momentum in 2026. Hyperscalers like Amazon and Microsoft plan to invest over $600 billion in AI infrastructure projects. Nvidia has secured over $500 billion in revenue commitments for its Blackwell and next-generation Rubin systems. TSMC, a major chip foundry, expects its revenue to grow by 30% in 2026, with AI chip revenue growing even faster. Applied Materials, a top US semiconductor equipment supplier, benefits from the rising demand for advanced logic chips and high-bandwidth memory.
Three AI Stocks Poised for Strong Growth in 2026
Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Applied Materials are expected to have significant momentum in 2026. Major tech companies plan to invest over $600 billion in capital expenditures for AI infrastructure projects. Nvidia has secured over $500 billion in revenue commitments for its Blackwell and next-generation Rubin systems, with Rubin launching in late 2026. TSMC, a leading chip manufacturer, expects its revenue to grow by 30% in 2026, and AI chip revenue to grow even faster through 2029. Applied Materials, a top US semiconductor equipment supplier, benefits from the increasing demand for cutting-edge logic chips and high-bandwidth memory.
Analysts Say The Trade Desk and Datadog Are Undervalued AI Stocks
Wall Street analysts believe The Trade Desk and Datadog are undervalued AI stocks with significant growth potential. The Trade Desk uses AI to help optimize digital advertising campaigns, especially in connected TV, and some analysts predict a 196% upside. Datadog provides AI-powered software for monitoring and security, with its Watchdog engine detecting issues, and some analysts see a 112% upside. Both companies are expected to grow, with The Trade Desk's earnings projected to increase 13% annually through 2026.
Two AI Stocks Could Soar Say Wall Street Analysts
Wall Street analysts suggest that The Trade Desk and Datadog are undervalued AI stocks poised for significant gains. The Trade Desk, which uses AI for digital advertising, could see a 196% increase from its current price of $25 to $74. Datadog, offering AI-powered observability and security software, might rise 112% from $120 to $255. Both companies are leaders in their fields, with The Trade Desk excelling in connected TV advertising and Datadog recognized for its Watchdog AI engine.
Cloverleaf Infrastructure a Key AI Power Broker Attracts Buyers
Cloverleaf Infrastructure, a two-year-old Houston-based company, is attracting takeover interest due to its crucial role in the AI boom. The company specializes in securing land and large-scale electricity for data centers, which is the biggest challenge for AI expansion. Cloverleaf focuses on sustainable, lower-carbon energy solutions and has raised $300 million. Co-founder Brian Janous, formerly of Microsoft, leads the lean team. The company is pursuing projects totaling 10 to 15 gigawatts of power capacity in states like Wisconsin and Georgia.
Four Under the Radar AI Stocks Beyond Nvidia
While Nvidia dominates AI, four other companies are quietly benefiting from the growing AI infrastructure. Super Micro Computer designs high-performance servers for AI workloads, gaining from increased deployment. Arista Networks provides ultra-fast networking solutions essential for AI clusters and data transfer. Vertiv Holdings offers critical cooling and power management systems for energy-intensive AI data centers. Synopsys develops the electronic design software needed to create advanced AI chips. These companies represent diverse opportunities within the expanding AI ecosystem.
Apple Stock Rises on AI Product Plans and New Macs
Apple's stock rose over 3% on Tuesday due to exciting news about upcoming products and AI initiatives. The company plans a product launch on March 4, possibly unveiling new Mac computers. Apple is also developing several AI-powered devices, including new AirPods, smart glasses, and a Siri-powered pendant. Additionally, Apple Podcasts will introduce new video features and allow creators to insert video ads later this year. Wedbush analyst Dan Ives expects Apple's stock to surge 33% to $350 per share.
Micron Technology Predicted to Reach 1 Trillion Dollar Value by 2026
Micron Technology, with a current market cap of $463 billion, is predicted to reach a $1 trillion valuation by the end of 2026. This growth is driven by the massive AI-fueled demand for memory chips, leading to supply shortages and sharp price increases. Data centers are expected to use 70% of memory chips produced this year, and demand for high-bandwidth memory is soaring. Analysts project Micron's earnings to increase by 306% in the current fiscal year. The company's DRAM, which makes up 80% of its revenue, is expected to see price increases of 70% to 100% in 2026.
AI Software Sales Face New Challenges as Buyers Grow Cautious
Selling AI software has become more challenging as potential customers are taking longer to decide and are less eager to buy. AI software vendors report that large companies are now more cautious about their purchases. This marks a shift from last year, which was a booming period for AI software sales. During that time, companies were spending freely, driven by mandates and fear of missing out on AI advancements.
SoundHound AI Stock Could Grow Significantly With Consistent Investment
SoundHound AI, a company specializing in voice control technology, shows potential for significant growth. With a billion-dollar contract backlog and expected break-even EBITDA in 2025, its market for voice-driven communication is enormous. An investment of $100 per month in SoundHound AI could grow to $27,675 by 2036, assuming a 15% annual return. This demonstrates how consistent investing over time can lead to substantial returns.
TPG CEO Jon Winkelried Forms AI Taskforce for Investment Strategy
TPG Chief Executive Jon Winkelried announced that the firm established an AI taskforce in late 2024. This taskforce aims to evaluate the impact and opportunities of AI and develop best practices for TPG's private equity strategies. TPG, which manages $224 billion in assets, strategically rebuilt its software portfolio from 2023 onward, focusing on companies that benefit from AI. Winkelried noted that market valuations are resetting, which may lead to misvalued companies and will likely slow down IPO and merger activity.
Celestica Boosts 2026 Revenue Forecast Due to AI Data Center Demand
Celestica, a hardware and services provider for data centers, has increased its 2026 revenue outlook. This positive change is driven by strong demand for AI-focused data center technologies. The company is aligning its capital investments with long-term infrastructure programs from major customers, with AI-related data center projects being a primary focus. While Celestica's stock price is currently below analyst targets, there has been recent insider selling, which investors might consider.
Sources
- Prediction: These Will Be the Best-Performing AI Stocks in 2026
- Prediction: These 3 AI Stocks Will Have Tremendous Momentum in 2026
- Prediction: These 3 AI Stocks Will Have Tremendous Momentum in 2026
- Prediction: These 3 AI Stocks Will Have Tremendous Momentum in 2026
- 2 Undervalued AI Stocks to Buy Before They Soar 112% and 196%, According to Certain Wall Street Analysts
- 2 Undervalued AI Stocks to Buy Before They Soar 112% and 196%, According to Certain Wall Street Analysts
- Exclusive: This under-the-radar power broker in AI boom draws takeover interest
- Beyond Nvidia: 4 AI Stocks Flying Under the Radar
- Why Apple Stock Rose Today
- Prediction: This Artificial Intelligence (AI) Stock Will Be Worth $1 Trillion by the End of 2026
- Selling AI Software Isn’t as Easy as It Used to Be
- 1 AI Stock That Could Turn $100 Per Month Into $27,675
- TPG Chief Executive Jon Winkelried Says Firm Set Up AI Taskforce
- Celestica Raises 2026 Outlook As AI Data Center Demand Shapes Valuation
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