Three AI Stocks Poised For Explosive Growth As Corporate Spending Accelerates In 2026

Nvidia recently unveiled its new GPU architecture.
AMD can capture market share that Nvidia has to give up due to supply constraints.
Broadcom is taking a different approach to AI computing.
10 stocks we like better than Nvidia ›

Spending on AI capabilities will not decrease in 2026. The reality is that AI hyperscalers plan to spend more on data centers in 2026 than ever before. And if projections beyond 2026 are to be believed, levels will be even higher in 2027. This puts the companies supplying this hardware in a great position, and they will see explosive growth in the coming years.

While many companies will benefit from this, investors don’t have to think about this. Some of the companies that have long dominated the artificial intelligence (AI) hardware game are still top picks. Three I’m looking at are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ:AVGO)And AMD (NASDAQ: AMD).

While these three may be obvious choices, sometimes the most obvious choice is the best.

Image source: Getty Images.

Nvidia has been the leader in AI infrastructure buildout since its inception in 2023. While it is recognized as having the best graphics processing units (GPUs) technology, it also has other supporting components, such as full-stack components and operating software, that beat the competition. This allowed Nvidia to not only rise to the top in AI infrastructure, but also become the largest company in the world by market capitalization.

Just because Nvidia is ahead doesn’t mean it’s retreating. Nvidia recently unveiled its Rubin platform, which is poised to take generative AI to the next level. This innovation should keep Nvidia at the top, but also stimulate future growth.

For fiscal year 2027 (ending January 2027), Wall Street expects 50% revenue growth from Nvidia. Considering Nvidia is a $4 trillion behemoth, I’d consider that explosive growth. Even further into the future, Nvidia expects global capital expenditures on data centers to reach $3 trillion to $4 trillion annually by 2030, and Nvidia will be among the companies leading the way in capitalizing on this explosive growth.

While Nvidia has been largely successful in its AI efforts, AMD has not experienced the same success. However, that may be shifting. One notable item that emerged from Nvidia’s third-quarter earnings report is that cloud GPUs are no longer available. While this is great for Nvidia, it also opens the door to other vendors like AMD. AI hyperscalers won’t reduce their computing needs just because Nvidia can’t fulfill them. Instead, they can turn to a company like AMD.

AMD is already seeing a shift.

It noted in November that downloads of its software, ROCm, increased tenfold year over year due to improvements with each release cycle. This shows that many people are exploring AMD as an alternative, and therefore it could deliver explosive growth.

AMD expects the data center division to achieve a compound annual growth rate (CAGR) of 60% over the next five years. The overall growth rate will be closer to 35% due to greater concentration in areas outside of AI, but that’s still strong growth for AMD that investors can take advantage of.

AMD and Nvidia are both focused on producing GPUs, which are broad-purpose computing units. This means that they can handle a wide variety of workloads, but are not necessarily suitable for any particular type of workload. This makes them a bit overkill for certain tasks that could be streamlined and done the same way every time. Broadcom is leaning into this streamlined approach, offering its design service to AI hyperscalers to help them design application-specific integrated circuit chips (ASIC).

Broadcom already has several customers rolling out these computing units and will launch several more later this year and next year. This should lead to explosive growth for Broadcom, as the company expects AI semiconductor revenues to rise 100% next quarter.

Broadcom is a great alternative to Nvidia and AMD and is expected to experience tremendous growth in the coming years. All three of these companies should see their growth explode higher, and I think they make great investments in any AI investor’s portfolio.

Consider the following before buying shares in Nvidia:

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Keithen Drury has positions in Broadcom and Nvidia. The Motley Fool holds positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

3 AI Stocks Poised for Explosive Growth as Corporate Spending Accelerates in 2026 was originally published by The Motley Fool