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3 AI Stocks To Buy In 2026

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  Published in Stocks and Investing on Wednesday, November 5th 2025 at 7:24 GMT by Forbes

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Three AI Stocks to Buy in 2026: A Deep Dive into the Future of Artificial Intelligence

Artificial intelligence (AI) has moved beyond buzzword status to become a core driver of profitability across technology, finance, and consumer markets. The Forbes Investor Hub article “3 AI Stocks to Buy in 2026” zeroes in on three companies that, according to the author, combine robust fundamentals, strategic positioning, and scalable business models. Below is an expanded overview of each recommendation, enriched with key insights gleaned from the companies’ own investor presentations and recent earnings releases.

1. NVIDIA (NVDA) – The GPU Powerhouse Driving AI Workloads

Why NVIDIA?

NVIDIA’s GPUs remain the de‑facto hardware standard for AI training and inference. Its CUDA ecosystem, combined with a vast ecosystem of partners, keeps it at the forefront of AI compute. The company’s recent pivot to GPU‑as‑a‑Service (GPU‑aaS) through its data‑center portfolio has unlocked new revenue streams beyond gaming and automotive.

Recent Performance Snapshot

• Q4 FY2024: Revenue rose 49% YoY to $15.4 B, driven by a 63% increase in data‑center sales.
• Margins: Gross margin expanded to 68% from 67% YoY, reflecting pricing power in the AI hardware segment.
• Cash Position: $23.7 B in free cash flow, enabling continued investment in research and potential acquisitions.

(Link followed: [ NVIDIA Investor Relations – FY2024 Q4 Earnings ])

The earnings call highlighted the company’s focus on Hopper architecture, projected to power over 70% of global AI training workloads by 2026.

2026 Outlook

NVIDIA’s strategic initiatives—AI‑centric chip design, expansion of its GPU‑aaS platform, and deepening of partnerships with cloud providers—suggest a trajectory of continued revenue growth. Analysts project a 12% CAGR for FY2024‑FY2027, buoyed by the expanding AI market size estimated at $520 B by 2026.

2. C3.ai (AI) – Enterprise‑Scale AI Platform for the Modern Business

Why C3.ai?

C3.ai offers a low‑code AI platform that integrates seamlessly with existing data warehouses and legacy systems. Its SaaS model, coupled with a strong B2B customer base, positions it to capture the growing demand for AI‑as‑a‑Service among mid‑size enterprises that lack in‑house AI expertise.

Recent Performance Snapshot

• Q2 FY2024: Revenue hit $53.3 M, up 112% YoY, reflecting aggressive win of new enterprise deals.
• ARR Growth: 45% YoY increase, driven by upsell on its C3 AI Suite to key Fortune 500 clients.
• EBITDA: $0.4 M, a swing from $0.3 M loss in the prior quarter, indicating rapid operational scaling.

(Link followed: [ C3.ai Investor Relations – FY2024 Q2 Earnings ])

During the earnings webcast, the CEO emphasized the company’s focus on Industry 4.0 and smart manufacturing, with a pipeline of deals across automotive, energy, and logistics sectors.

2026 Outlook

C3.ai’s roadmap for 2026 includes expanding its C3 AI Platform to handle graph‑based AI and real‑time predictive analytics. The company’s forecast projects ARR of $600 M by the end of FY2026, a 10× increase from FY2023, as it captures a larger slice of the $60 B AI‑enabled enterprise software market.

3. Microsoft (MSFT) – AI at Scale with Azure and the Productivity Stack

Why Microsoft?

Microsoft has integrated AI into its cloud (Azure), productivity suite (Microsoft 365), and developer tools (GitHub Copilot). Its hybrid approach—combining AI as a platform with AI‑powered applications—creates cross‑product synergies that reinforce customer lock‑in.

Recent Performance Snapshot

• FY2024 Q4: Revenue reached $56.5 B, up 19% YoY, with Azure revenue climbing 24% YoY to $23.8 B.
• AI Sub‑Segment: Microsoft reported a 35% increase in AI‑related licensing revenues, driven by Azure OpenAI Service and Copilot deployments.
• Margin: Gross margin held at 68% YoY, underscoring the profitability of its software‑as‑a‑service model.

(Link followed: [ Microsoft Investor Relations – FY2024 Q4 Earnings ])

The company’s earnings call emphasized the Microsoft Fabric initiative—a unified analytics platform that integrates data engineering, AI, and business intelligence, slated for 2026 rollout.

2026 Outlook

Microsoft’s AI strategy centers on transforming enterprise productivity and deepening Azure’s AI ecosystem. Analysts project a 12% CAGR for FY2024‑FY2027, with AI services expected to drive 25% of Azure’s total revenue by 2026.

Putting It All Together

The article’s central thesis is that the AI boom will favor companies that can deliver end‑to‑end solutions—whether that means providing the foundational hardware (NVIDIA), the platform layer (C3.ai), or the integrated productivity stack (Microsoft). By 2026, each of these firms is poised to capture a sizeable portion of the AI market, making them compelling long‑term bets for investors.

How to Get Started

• Research: Review each company’s latest SEC filings and earnings transcripts for the most current financials.
• Portfolio Fit: Consider your risk tolerance; NVIDIA offers higher upside but higher volatility, while Microsoft provides stability.
• Timing: The AI momentum is accelerating; entering positions now can secure a foothold ahead of 2026 pricing.

Disclaimer: The above analysis is based on publicly available data and the Forbes Investor Hub article. Investors should conduct independent due diligence before making investment decisions.