The artificial intelligence sector continues to drive significant market activity and investor interest, though some experts caution about a potential stock bubble in 2026. Despite these concerns, a long-term investment strategy focusing on strong companies and core AI technologies is advised. Companies across various industries are leveraging AI, from enhancing operational efficiency to developing next-generation solutions, reflecting robust growth and strategic partnerships. Chip manufacturers like Nvidia and AMD remain central to the AI boom, with Nvidia's stock soaring over 1,100% in three years as it supplies powerful GPUs to major cloud providers. AI infrastructure spending is projected to hit $4 trillion by 2030. Supporting this growth, companies like Vertiv are crucial for managing the intense heat generated by AI chips in data centers, reporting a 29% revenue increase to $2.68 billion in Q3 2025 and acquiring PurgeRite for $1 billion to boost thermal management services. Monolithic Power Systems also saw its stock jump 4.4% amid an AI-driven semiconductor rally. Cloud services and AI software are also seeing substantial expansion. OVH Groupe reported 6.0% organic revenue growth in Q1 2026, driven by cloud and new AI contracts. Grid Dynamics Holdings recently partnered with Amazon Web Services (AWS) to deliver generative AI solutions to large businesses, while investing in its own AI/ML tools like GAIN. Palantir is already finding success with its AI Platform, and other software companies like Appian, Amplitude, and Figma show strong potential as they integrate AI into their products. AI's impact extends to specialized applications, such as automotive engineering, where Synopsys unveiled new AI-driven tools at CES 2026 to accelerate vehicle development. The RealReal adopted Motorola Solutions' AI video security system, cutting asset protection costs by 60%. Meanwhile, Klaviyo's AI-powered personalization tools significantly boosted 2025 Black Friday Cyber Monday sales, linking to one in every $20 spent online in the US. On the innovation front, Andrew Dai, a former Google DeepMind AI researcher, is launching Elorian, a new startup seeking $50 million in seed funding to develop advanced AI models capable of processing text, images, video, and audio simultaneously. Meta Platforms is also heavily investing in AI, including building its own Artemis chips, to transform advertising and user experience.
Key Takeaways
- RealReal adopted Motorola Solutions' AI video security system, reducing asset protection costs by 60% and speeding up inventory checks.
- Monolithic Power Systems increased its manufacturing capacity to $4 billion in annual revenue, benefiting from an AI-driven semiconductor rally.
- OVH Groupe reported
RealReal stock rises after adopting AI security system
The RealReal (REAL) recently adopted Motorola Solutions' AI video security system. This new system helps the company cut asset protection costs by about 60% and makes inventory checks faster. The company's stock has seen strong returns, rising 88.43% over the past year. Analysts currently value RealReal at US$15.13, suggesting it might be overvalued compared to its US$16.45 closing price. RealReal continues to invest in AI to improve operations and plans to expand its drop ship services.
Monolithic Power Systems stock jumps on AI rally
Monolithic Power Systems (MPWR) stock recently rose 4.4% due to an AI driven semiconductor rally at CES and positive news about Federal Reserve policy. The company's stock has gained 63.55% over the past year. While analysts see it as undervalued with a fair value of about US$1,196, a different model suggests it might be overvalued. Monolithic Power Systems has increased its manufacturing capacity to $4 billion in annual revenue and is expanding beyond China.
OVH Groupe shows Q1 cloud growth and AI expansion
OVH Groupe (ENXTPA:OVH) reported strong first quarter 2026 results with 6.0% organic revenue growth and total revenue of €275.3 million. The company's stock has seen good momentum, rising 32.24% in the last 90 days and 47.60% over three years. OVH Groupe is trading at €7.86, which some analysts consider undervalued with a fair value of €9.06. However, another model suggests the shares are overvalued. The company's growth is driven by its cloud services and new AI related contracts.
Grid Dynamics partners with AWS on generative AI
Grid Dynamics Holdings (GDYN) announced a new multi-year partnership with Amazon Web Services (AWS). This collaboration focuses on providing generative AI solutions to large businesses. The company's stock has seen a 25% return in the last 90 days, though its one-year return is down 53.17%. Grid Dynamics is currently trading at US$9.53, which some analysts believe is undervalued compared to a fair value of US$12.50. The company invests in its own AI/ML solutions like GAIN to improve efficiency and secure more enterprise deals.
Vertiv helps AI data centers run efficiently
Vertiv plays a key role in making AI data centers efficient by managing heat. Since AI chips create a lot of heat, cooling systems are vital to prevent damage and maintain performance. In the third quarter of 2025, Vertiv's revenue grew 29% to $2.68 billion, and its earnings per share rose 63% to $1.24. The company also has a $9.5 billion backlog. Vertiv recently bought PurgeRite for $1 billion to boost its thermal management services. It is also building a new factory in Malaysia to serve Asian customers better.
Vertiv helps AI data centers run efficiently
Vertiv plays a key role in making AI data centers efficient by managing heat. Since AI chips create a lot of heat, cooling systems are vital to prevent damage and maintain performance. In the third quarter of 2025, Vertiv's revenue grew 29% to $2.68 billion, and its earnings per share rose 63% to $1.24. The company also has a $9.5 billion backlog. Vertiv recently bought PurgeRite for $1 billion to boost its thermal management services. It is also building a new factory in Malaysia to serve Asian customers better.
Experts discuss AI stock bubble concerns for 2026
Many investors worry about a possible AI stock bubble in 2026 after rapid growth in recent years. Experts like Asit Sharma and Donato Riccio from The Motley Fool say no one can predict if a bubble will burst. They advise investors to focus on a long-term strategy and invest consistently in strong companies. They also suggest looking at smaller companies that build the core technologies for AI. This approach helps manage risk and capture long-term gains from AI's ongoing transformation.
Two ways to profit from AI stocks in 2026
Experts predict two main trends for AI stocks in 2026. First, chip stocks like Nvidia and AMD will likely perform better than AI infrastructure companies such as CoreWeave and Oracle. Infrastructure companies face higher risks because they must spend billions building data centers before earning money. Second, software companies are expected to become major AI winners. Palantir is already seeing success with its AI Platform, and smaller companies like Appian, Amplitude, and Figma show great potential as they integrate AI into their products.
Synopsys unveils AI tools for automotive at CES 2026
Synopsys (SNPS) showcased new AI driven automotive engineering tools at CES 2026. These tools include Virtualizer Development Kits designed for automotive chips. The goal is to reduce costs and accelerate vehicle development programs. Synopsys stock has performed well, with a 19.65% return over 90 days and a 57.73% return over three years.
Two AI stocks with millionaire making potential
Investors are looking for AI stocks that could offer significant returns. Nvidia, a leader in AI chips, has seen its stock soar over 1,100% in the past three years. The company sells powerful GPUs to major cloud providers and expects AI infrastructure spending to reach $4 trillion by 2030. Meta Platforms, known for Facebook and Instagram, is also heavily investing in AI, including building its own AI chips called Artemis. Meta aims to use AI to transform advertising, content creation, and user experience, showing strong financial health with recent dividend payments.
Klaviyo AI tools boost Black Friday Cyber Monday sales
Klaviyo, Inc. (KVYO) received a positive analyst rating from BTIG following its 2025 Black Friday Cyber Monday (BFCM) Recap Report. The report highlighted Klaviyo's strong performance, noting that its AI powered personalization and loyalty tools drove significant online spending. About one in every US$20 spent online in the US during the BFCM period was linked to Klaviyo's platform. This success was especially clear in the Health & Beauty and Apparel sectors, showing how much businesses rely on Klaviyo to improve customer engagement and sales during key shopping events.
Ex Google Apple experts launch new AI startup Elorian
Andrew Dai, a former AI researcher from Google DeepMind, is starting a new company called Elorian. This startup aims to develop advanced AI models that can understand and process text, images, video, and audio all at once. Elorian is currently seeking to raise $50 million in seed funding from various investors. Dai plans to hire a small team of engineers and researchers in the coming months to build this new generation of AI applications.
Invesco ETF offers concentrated bet on AI stocks
The Invesco AI and Next Gen Software ETF (IGPT) provides a focused way to invest in AI infrastructure and applications. This ETF holds about 115 positions, with its top 10 holdings making up 62% of its assets, including companies like NVIDIA and Micron Technology. IGPT has shown strong performance, gaining 34% in the past year and an impressive 380% over the last decade. However, its concentrated nature means higher volatility and risk, especially due to its semiconductor exposure. The fund is best suited for investors who believe in the AI infrastructure buildout and can handle significant market swings.
Sources
- A Look At RealReal (REAL) Valuation After AI Security Upgrade And Strong Recent Share Returns
- A Look At Monolithic Power Systems (MPWR) Valuation After AI Fueled Semiconductor Rally And Fed Policy Optimism
- OVH Groupe (ENXTPA:OVH) Valuation Check After Q1 Cloud Growth And AI Expansion Moves
- A Look At Grid Dynamics Holdings (GDYN) Valuation After New AWS Generative AI Collaboration
- AI's Next Bottleneck Isn't Hardware -- It's Efficiency. Here's the Stock to Watch.
- AI's Next Bottleneck Isn't Hardware -- It's Efficiency. Here's the Stock to Watch.
- Should You Be Worried About an AI Bubble in 2026? Here's What the Experts Have to Say.
- Prediction: 2 Ways To Capitalize on AI Stocks in 2026
- Synopsys (SNPS) Valuation Check After CES 2026 AI Automotive Announcements
- 2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire
- Is Klaviyo’s AI-Driven BFCM Share Of US Online Spend Reframing The Investment Case For KVYO?
- Former Google, Apple Researchers Raising $50 Million for New Visual AI Startup
- This Tiny ETF Is One Of The Best Ways To Bet On AI Stocks Right Now
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