The stock market is expected to rise in 2026, driven by strong earnings growth projected at 12.3% for the S&P 500 and potential lower interest rates. Key players in this growth include tech companies investing heavily in AI, with major firms like Amazon, Microsoft, Alphabet, and Meta planning to invest $400 billion in capital expenditures in 2025, up over 300% from 2018 levels.
Two standout stocks recommended for investors are First Solar, Inc. (FSLR) and Arista Networks, Inc. (ANET). FSLR is set to achieve significant revenue growth—projected to increase to $6.27 billion in FY26 from $4.21 billion in FY25, supported by a strong backlog of 53.7 GW. ANET is also projected to increase its sales from $7 billion in 2024 to $10.73 billion by FY26, marking a more than 100% increase since 2022, benefiting from partnerships with AI hyperscalers.
Both companies offer attractive entry points in the market, with FSLR’s stock trading 12% below its 2024 highs and ANET trading 20% below its previous peaks. Investors are advised to consider these stocks as part of a strategy to capitalize on the anticipated AI and renewable energy investment boom.
