AI stocks have significantly outpaced the broader market over the past five years, with new data from New Constructs showing a 287 percent average return for 50 AI-related stocks between January 1, 2019, and December 31, 2023. This performance represents a 136 percent lead over the S&P 500's 151 percent return during the same period. This strong growth is attributed to increased AI adoption, expanding markets, and substantial investment in research and development across various industries. Several companies are positioning themselves for continued growth in the AI sector. Nebius, a cloud provider, anticipates a significant jump in its annualized revenue run rate by the end of 2026, driven by demand for AI infrastructure. SoundHound AI focuses on voice recognition and conversational AI, while IonQ leads in quantum computing, both areas with increasing application. These early-stage companies present compelling opportunities, though they also carry inherent risks. AI is also driving operational efficiencies and strategic shifts. The RealReal, a luxury resale company, implemented Motorola Solutions' AI-enabled video security system, reducing its asset-protection operating expenses by approximately 60 percent and improving inventory tracking. The company targets $842.8 million in revenue and $40.0 million in earnings by 2028. Similarly, Rambus is transitioning its business model to offer more semiconductor products for AI data centers, aiming for $963.4 million in revenue and $355.6 million in earnings by 2028. The core infrastructure supporting AI continues to evolve rapidly. Applied Digital, an AI data center company, reported 250 percent revenue growth in Q2 fiscal 2026 and is addressing power bottlenecks by installing steam turbines to bring 1 gigawatt of natural gas-fired power online by 2028. In the chip sector, Taiwan Semiconductor Manufacturing (TSM) produces about 90 percent of the world's most advanced chips, including those for NVIDIA and AMD. Palantir Technologies showed strong returns of 138 percent in 2025 and 63 percent revenue growth, while AMD aims to capture 20 percent of the AI accelerator market by 2027. Arm Holdings also sees growth from AI-driven projects, and Asia's tech stocks, including Samsung and SK Hynix, began 2026 with strong performance, outperforming US counterparts in the global AI race.
Key Takeaways
- AI-related stocks collectively outperformed the S&P 500 by 136 percent over the past five years, returning an average of 287 percent.
- Nebius, SoundHound AI, and IonQ are identified as AI stocks with potential for rapid growth by 2026, focusing on cloud AI, voice recognition, and quantum computing, respectively.
- The RealReal implemented an AI-enabled video security system, cutting asset-protection operating expenses by 60 percent and targeting $842.8 million in revenue and $40.0 million in earnings by 2028.
- Rambus is shifting its business model towards semiconductor products for AI data centers, projecting $963.4 million in revenue and $355.6 million in earnings by 2028.
- Palantir Technologies achieved 138 percent returns in 2025 and reported 63 percent revenue growth.
- Advanced Micro Devices (AMD) aims to secure 20 percent of the AI accelerator market by 2027.
- Taiwan Semiconductor Manufacturing (TSM) produces approximately 90 percent of the world's most advanced chips, including those used by NVIDIA and AMD.
- Applied Digital, an AI data center company, reported 250 percent revenue growth and plans to bring 1 gigawatt of natural gas-fired power online by 2028 using steam turbines.
- Asia's technology stocks, including Samsung Electronics, TSMC, and SK Hynix, started 2026 with strong performance, leading their US counterparts in the global AI race.
- Arm Holdings' fair value saw a slight adjustment, but the company continues to drive growth through strong licensing and new AI-driven projects.
Three AI Stocks Poised for Huge Growth by 2026
Investors are watching three artificial intelligence stocks, Nebius, SoundHound AI, and IonQ, for potential rapid growth by 2026. Nebius, a cloud provider, projects its annualized revenue run rate to jump significantly by the end of 2026. SoundHound AI focuses on voice recognition and conversational AI, while IonQ leads in quantum computing. These companies have shown success, but they also carry risks due to competition and market acceptance. Their potential for explosive growth makes them interesting for investors.
Nebius SoundHound IonQ Could See Big AI Stock Gains by 2026
Three artificial intelligence companies, Nebius, SoundHound AI, and IonQ, show potential for rapid stock growth by 2026. Nebius offers cloud and AI solutions, aiming to meet rising demand for AI infrastructure. SoundHound AI is strong in voice recognition and conversational AI, benefiting from increasing use of voice interfaces. IonQ leads in quantum computing, a technology that could revolutionize AI. Investors should know that these early-stage tech companies have risks, but they offer compelling opportunities for those with a long-term view.
AI Stocks Outperform S&P 500 by 136 Percent Over Five Years
New data from investment firm New Constructs reveals that artificial intelligence stocks significantly outperformed the S&P 500 over the past five years. From January 1, 2019, to December 31, 2023, 50 AI-related stocks returned an average of 287 percent, beating the S&P 500's 151 percent return by 136 percent. This strong performance comes from increased AI adoption, growing AI markets, and heavy investment in research and development. New Constructs CEO David Trainer advises investors to look for companies with strong fundamentals, not just an "AI" label.
AI Stocks Beat S&P 500 by 136 Percent in Five Years
Artificial intelligence stocks have significantly outperformed the S&P 500 over the last five years, returning 136 percent more than the broader market. This strong growth is due to rapid technological advancements and increasing adoption of AI across many industries. Companies leading in AI development, from chip makers to software providers, have seen their values rise sharply. While past results do not guarantee future performance, this trend suggests AI stocks remain a compelling investment opportunity. Investors should conduct thorough research and diversify their portfolios.
RealReal Cuts Security Costs 60 Percent Using New AI System
The RealReal, a luxury resale company, recently installed Motorola Solutions' AI-enabled video security system. This new technology helped the company cut its asset-protection operating expenses by about 60 percent. It also improved the tracking of unique luxury items, making inventory management more efficient. UBS raised its price target for RealReal from US$14.00 to US$16.00, noting these operational improvements. The company aims for $842.8 million in revenue and $40.0 million in earnings by 2028.
Rambus Shifts to AI Data Center Products Boosting Growth
Rambus is changing its business model by moving from mainly licensing to offering more semiconductor products for AI data centers. Experts like Jim Cramer see Rambus's strong technology and reasonable value as it serves large hyperscale customers. This shift could make Rambus a more important part of long-term spending plans for these big tech companies. Rambus also bought back US$50,000,000 of its shares in early and mid-2024. The company expects to reach $963.4 million in revenue and $355.6 million in earnings by 2028.
Asia Tech Stocks Lead Global AI Race with Strong 2026 Start
Asia's technology stocks began 2026 with strong performance, outperforming their US counterparts in the global AI race. Investment firms like Goldman Sachs and Citigroup expect continued gains due to high demand for artificial intelligence and fair valuations. Companies like Samsung Electronics, TSMC, and SK Hynix have seen their shares surge. South Korea and Taiwan, key tech markets, project much higher earnings growth than Nasdaq firms. China's tech sector also shows strong growth, supported by the government and new AI company listings.
Arm Holdings Adjusts Value as AI Projects Drive Growth
Arm Holdings recently saw a slight adjustment in its fair value estimate, moving from about US$164.85 to US$163.25 per share. This change reflects how the market is considering both positive signs and potential risks for the company. Positive factors include strong licensing, new AI-driven projects, and successful design wins. However, investors are also looking at execution risks as Arm navigates these business shifts.
Applied Digital Uses Old Tech to Power New AI Data Centers
Applied Digital, an AI data center company, reported massive revenue growth of 250 percent in the second quarter of fiscal 2026. The company is addressing a major power bottleneck in the AI industry by using an unexpected solution. Due to long waits for new gas turbines, Applied Digital partnered with Babcock & Wilcox, a company founded in 1867, to install steam turbines. This plan will bring 1 gigawatt of natural gas-fired power online by 2028, years sooner than traditional gas turbines. This innovative approach helps Applied Digital meet its goal of 5 gigawatts of capacity within five years.
Five AI Stocks Show Potential for NVIDIA-Like Growth
Five artificial intelligence-related stocks are showing strong potential to achieve significant growth, similar to NVIDIA's past success. Palantir Technologies, a software company, saw 138 percent returns in 2025 and 63 percent revenue growth. ASML Holding holds a monopoly on essential extreme ultraviolet lithography machines, crucial for advanced chip manufacturing. Taiwan Semiconductor Manufacturing, or TSM, produces about 90 percent of the world's most advanced chips, including those for NVIDIA and AMD. Broadcom is growing fast with its custom AI chip business for major tech companies. Advanced Micro Devices, or AMD, aims to capture 20 percent of the AI accelerator market by 2027.
Sources
- 3 Artificial Intelligence (AI) Stocks That Could Go Parabolic in 2026
- 3 artificial intelligence (AI) stocks that could go parabolic in 2026
- New data shows AI stocks beat the S&P 500 by 136% over 5 years
- New data shows AI stocks beat the S&P 500 by 136% over 5 years
- The Bull Case For RealReal (REAL) Could Change Following AI-Driven Cut To Asset-Protection Costs
- Is Rambus (RMBS) Quietly Rewriting Its AI Data Center Narrative With a Shift to Products?
- Global AI Race Shows Asia Leading as Stocks Start 2026 With Bang
- How Recent AI And Business Shifts Are Rewriting The Story For Arm Holdings (ARM)
- Applied Digital Just Solved AI's Biggest Bottleneck with Technology From the 1800s
- 5 AI Stocks That Could Replicate NVIDIA's Decade of Dominance
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