Top AI stocks to watch in 2026

What are AI stocks?

AI stocks are the shares of companies involved in the AI sector. This could be those that manufacture semiconductors, software companies or quantum computing organisations.

Since ChatGPT launched in November 2022 and garnered over 1 million users in five days (a feat that took Facebook 10 months to achieve and Netflix three-and-a-half years), AI has exploded in our everyday lives; it’s growing and threatening jobs, making our internet searches easier and suggesting more accurate recommendations for what we should watch next on TV.

It's important to consider the risks when stock trading AI shares. As this technology is growing at a rapid pace and is still relatively new, it’s costly and full of failures. Therefore, caution is paramount, whether you’re CFD trading or stock trading.

How are regulations affecting AI stocks?

Regulations are popping up all over the world in response to the growing use of AI in our daily lives. These are having an effect on AI stocks in a number of ways, some good, others bad.

For example, better regulations lead to greater investor confidence, more ethical AI systems and innovation for businesses that can help others with compliance. On the other hand, though, regulations can just as easily stifle innovation, making it harder to make breakthroughs. They can also increase the costs for AI companies to do business, as organisations need to jump through hoops to be compliant. 

Advantages of AI stocks

Perhaps the greatest benefit to stock trading AI stocks is their potential for momentous growth, with AI adoption increasing across the board. Here are two more:

• Significant capital: Tech giants and venture capitalists are investing heavily in AI companies
• Diversification: Because AI is used across industries and sectors, stock traders have the opportunity to diversify their portfolios

Risks of AI stocks

In contrast, possibly the biggest disadvantage of trading AI stocks is their volatility, particularly smaller AI companies. Other cons include:

• Regulations: As we mentioned, regulations can have both a positive and negative influence on the AI industry. But as far as investors are concerned, they can lead to massive expenses for AI companies, which affects stock trader profits
• Competition: Because the AI sector is so heavily competitive, it’s easy to pick the ‘wrong’ stock to trade – one that might not emerge as the leader in its industry
• Ethics: Bias in AI models raises ethical concerns, as does the disappearing act that many jobs are doing

Top 3 AI stocks for stock traders to watch in 2026

These three stocks – Lumentum Holdings, Ciena Corporation and Nebius Group – are all available for non-leveraged stock trading.

Overview of the stocks covered in this section

All figures are accurate as of 24 February 2026.

1. Lumentum Holdings Inc (Nasdaq: LITE)

Market cap: US$48.18 billion¹

EPS: US$3.59²

Lumentum Holdings is a US-based technology company that designs and manufactures optical and photonic products.

In simple terms, it makes highly specialised components that use light to transmit data. These components are essential in data centres, telecom networks and advanced sensing systems.

As AI models become more complex, they require faster data transfer and greater bandwidth. Lumentum’s optical solutions help power the high-speed connections inside AI data centres, making it an important ‘behind-the-scenes’ enabler of AI infrastructure.

Over the past six months, Lumentum’s share price has shown a strong upward trend. Growing demand for AI-related hardware and improving sentiment around data centre spending have supported momentum.

Stock traders have increasingly focused on companies that supply the backbone of AI systems rather than just software developers, and Lumentum fits firmly into that category.

Highlights:

•  As hyperscale cloud providers expand capacity to support generative AI and machine learning workloads, demand for advanced optical components is expected to remain strong
• While technology stocks can experience swings in sentiment, Lumentum’s role in critical communications infrastructure positions it as a company closely aligned with sustained AI investment trends
• Its stock price has gained 440.39% over the past six months³

2. Ciena Corporation (NYSE: CIEN)

Market cap: US$48.78 billion⁴

EPS: US$0.87⁵

Ciena Corporation is a global networking systems and software company headquartered in the US. It specialises in high-capacity optical networking equipment and network automation software.

Its technology enables telecom providers and cloud companies to move vast amounts of data efficiently across long distances. As AI applications generate and process enormous volumes of information, robust and scalable network infrastructure becomes essential.

Ciena’s connection to AI is indirect but significant. AI systems rely on powerful computing clusters distributed across data centres, and those data centres must be connected with ultra-fast, reliable links. Ciena provides the technology that makes this connectivity possible

In the past six months, Ciena’s share price has moved higher, supported by optimism around AI-driven network upgrades. Many service providers are investing in faster and more flexible networks to accommodate data-heavy AI workloads. This has strengthened the investment case for companies like Ciena supplying advanced networking solutions.

Highlights:

• For stock traders, the company offers exposure to the broader AI buildout without relying solely on consumer-facing AI products
• Its business is tied to long-term infrastructure upgrades, which can provide a more strategic angle on AI growth as global data traffic continues to expand
• Ciena’s stock price has grown by 277.16% over the past six months⁶

3. Nebius Group (Nasdaq: NBIS)

Market cap: US$25.32 billion⁷

EPS: -US$0.68⁸

Nebius Group is a newer name in the AI world and is based in the Netherlands. The company builds cloud infrastructure for AI. In simple terms, it creates powerful data centres full of high-performance GPUs – the hardware that runs large AI models.

It also owns several related businesses, including AI data services and autonomous driving projects. This makes Nebius a full-stack AI company, involved in nearly every step of the process, from training AI models to deploying them.

For stock traders, Nebius represents a high-growth opportunity. It’s a fast-moving company working in one of the most exciting parts of the market. It has also attracted major funding to build new AI data centres across Europe.

It’s best suited for stock traders with a long-term outlook and a higher tolerance for risk. If it executes well, it could become a key name in the global AI infrastructure race.

Highlights:

• Nebius stands out for stock traders seeking exposure to AI’s infrastructure layer outside the US and Asia. Its growth narrative is linked to expanding AI adoption across industries such as finance, healthcare and technology
• While competition in cloud computing is intense, Nebius focuses specifically on AI-optimised services, giving it a differentiated positioning
• Its stock price has increased by 40.71% over the past six months⁹

Top 3 AI stocks for CFD traders to watch in 2026

All three of the AI stocks mentioned in this section – Vertiv Holdings, Baidu Inc and Artrya Limited – are available to trade through IG UAE via contracts for difference (CFDs). 

Overview of the stocks covered in this section

All figures are accurate as of 24 February 2026.

1. Vertiv Holdings LLC (NYSE: VRT)

Market cap: US$93.90 billion¹⁰

EPS: US$3.49¹¹

Vertiv Holdings provides critical digital infrastructure technologies and services. The US-based company designs and maintains power, cooling and monitoring systems used in data centres and communication networks.

AI computing requires vast amounts of electricity and generates significant heat, so advanced cooling and power management solutions are essential. Vertiv’s products help ensure AI servers operate efficiently and reliably.

During the past six months, Vertiv’s share price has experienced substantial swings. Strong enthusiasm around AI-driven data centre expansion has pushed the stock higher at times, while broader market volatility and shifts in expectations around infrastructure spending have triggered pullbacks. These pronounced movements have created an active trading environment.

Highlights:

• For CFD traders, Vertiv’s volatility can present short-term opportunities. The company sits at the heart of AI infrastructure investment cycles, and news related to data centre spending, semiconductor demand or broader technology sentiment can quickly influence its share price
• Because it operates in a capital-intensive segment, expectations around future orders and margins often drive rapid market reactions

2. Baidu Inc (HKE: 9888)

Market cap: HK$366.32 billion¹²

EPS: HK$1.35¹³

Baidu is one of China’s leading technology companies, best known for its search engine and digital ecosystem. In recent years, Baidu has invested heavily in AI, developing large language models, autonomous driving technology and AI cloud services. Its AI chatbot and generative AI tools are designed to compete within China’s fast-evolving technology landscape.

Over the past six months, Baidu’s share price has been volatile. Stock trader sentiment has shifted in response to developments in China’s technology sector, regulatory updates and competitive dynamics in AI. Announcements related to new AI product launches or policy changes have often led to sharp price movements in either direction.

This pattern of fluctuation makes Baidu particularly interesting for CFD traders.

Highlights:

• The company operates in a rapidly changing regulatory and competitive environment, and its AI strategy remains a key focus for markets
• News flow around AI adoption, partnerships or government policy can quickly alter expectations

3. Artrya Limited (ASX: AYA)

Market cap: A$493.22 million¹⁴

EPS: -A$0.18¹⁵

Artrya Limited is an Australian medical technology company that uses AI to assist in the diagnosis of heart disease. Its software analyses cardiac imaging scans to help doctors identify signs of coronary artery disease more accurately and efficiently.

By applying machine learning algorithms to medical data, Artrya aims to improve patient outcomes and streamline clinical workflows.

In the last six months, Artrya’s share price has shown significant volatility. As a smaller healthcare technology company, it’s particularly sensitive to news around regulatory approvals, clinical results and commercial partnerships. Positive announcements can drive rapid gains, while delays or funding concerns may trigger equally sharp declines.

For CFD traders, this variability can create short-term trading opportunities. Smaller AI-focused healthcare stocks often react strongly to updates, because future growth expectations are closely tied to milestone achievements.

Highlights:

• Artrya’s position in the emerging field of AI-driven medical diagnostics adds another layer of interest, as stock trader sentiment towards healthcare innovation can shift quickly
• Its combination of specialised AI application and news-driven price swings has contributed to an active and sometimes unpredictable trading pattern over recent months

How to trade AI stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for AI stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for AI stocks
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about ETFs

Footnotes

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