Key Points
Investors looking to allocate funds in 2026 should consider Taiwan Semiconductor (NYSE: TSM), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOG) as top stock picks. All three companies are poised to benefit significantly from the escalating demand for advanced AI infrastructure and data centers, with each company showing strong growth trends and potential for substantial returns.
Taiwan Semiconductor
Taiwan Semiconductor is the world’s largest third-party foundry and plays a critical role in manufacturing chips for AI infrastructure. The company is expected to see increased revenue as data center construction ramps up, with AI-related capex hitting new records in 2026. In 2025, AI hyperscalers set record highs for capital expenditures, indicating ongoing growth in chip demand.
Amazon and Alphabet
Amazon’s AWS segment accounted for 66% of its operating profits, growing revenue by 20% in Q3 2025. Similarly, Alphabet reported a 16% revenue growth year-over-year in Q3 2025, with diluted earnings per share rising by 35%. Both companies are well-positioned in the AI landscape, with Alphabet emerging as a leader through its innovative models.
