​​​Best AI stocks to watch

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1. Best AI stocks to watch
2. How to trade or invest in AI stocks
3. Best AI stocks summed up

​​Advanced Micro Devices, Broadcom, Nvidia, Palantir Technologies and Super Micro Computer rank among the most compelling AI stocks to monitor, especially following the sharp October-to-November 2026 sell-off. All of these feature prominently among the top-weighted holdings in the iShares Future AI and Tech ETF.

​AI-related companies continue to dominate the US stock market's performance. Since the beginning of 2024, 42 AI-linked companies have accounted for approximately 67% of the S&P 500's cumulative price gains, highlighting the extent to which the index's advance remains dependent on the AI investment boom. However, leadership is gradually broadening, with semiconductor manufacturers and infrastructure suppliers increasingly contributing alongside the established technology giants.​

​What sets artificial intelligence apart from previous technological advances is the breadth of its real-world applications. AI is already being deployed across entertainment, social media, retail, security, sports analytics, manufacturing, autonomous vehicles, healthcare, financial services and warehousing. It is increasingly being used not simply to analyse information, but to make decisions, automate processes and generate content.

​Many of these applications have been developing for years. Netflix recommendations, targeted advertising, loyalty-card analysis and football performance data all rely on increasingly sophisticated algorithms. However, the arrival of generative AI has brought the technology into the mainstream, making its capabilities more visible and accessible to consumers and businesses alike.

​The catalyst was ChatGPT, developed by OpenAI and launched on 30 November 2022. It attracted more than one million users within five days – a milestone that took Facebook around ten months and Netflix several years to reach. Its growth has continued at an extraordinary pace: OpenAI reported more than 1.2 billion weekly active users at its September 2026 DevDay, while 50 million consumer subscribers and 9 million paying business users were disclosed earlier in 2026.

​The implications extend well beyond chatbots. Generative AI is changing how businesses write, code, research, communicate and process information. Jobs in areas such as copywriting, accounting, customer service and software development are likely to be reshaped, even if wholesale replacement remains a more uncertain prospect. AI-powered search is also challenging the traditional way people find information online, putting pressure on Google's long-established search business.

​The speed of adoption is reflected in the extraordinary valuations being attached to the companies developing the technology. The AI investment story is no longer confined to established technology giants. Specialist businesses are increasingly seeking access to public markets, giving investors a more direct route into the sector. SpaceX's June 2026 flotation, following its acquisition of xAI, and the May listing of AI-chip maker Cerebras were among 2026's landmark offerings with Initial Public Offerings (IPOs) for Anthropic and OpenAI in the pipeline. Chinese AI businesses, including Zhipu AI and MiniMax, have also listed in Hong Kong.

​AI development is, however, extraordinarily costly, and behind each breakthrough lie countless expensive failures. As a result, the leading AI opportunities may lie with the larger, well-capitalised blue-chip companies - firms sufficiently diversified to withstand setbacks should their AI ambitions fall short.

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Best AI stocks to watch

1. Advanced Micro Devices
2. Broadcom Inc
3. Nvidia
4. Palantir Technologies
5. Super Micro Computer

1. Advanced Micro Devices (NASDAQ: AMD)

Advanced Micro Devices (AMD) is a semiconductor firm specialising in high-performance computing and graphics processing, both critical to the development of artificial intelligence. Its EPYC server processors and Instinct accelerators are increasingly being used in AI data centres, while its 3D V-Cache technology boosts cache capacity and performance for demanding workloads.

​AMD’s third-quarter 2026 revenue rose 45% year-on-year to a record $13.38 billion, while operating profit more than doubled to $2.83 billion and net income climbed 95% to $2.43 billion. Data Center revenue almost doubled to $8.55 billion, driven by strong demand for EPYC processors and Instinct MI450-series GPUs. R&D spending increased to $2.80 billion, but operating margins improved to 21% from 14% a year earlier as AI-related sales scaled.

​AMD is also benefiting from major AI infrastructure partnerships. In October 2025, it announced a multi-year agreement with OpenAI to supply up to 6 gigawatts of GPUs, with the first 1 gigawatt powered by MI450-series products. AMD issued OpenAI a warrant to purchase up to 160 million AMD shares at $0.01 each, subject to deployment, commercial and share-price milestones. AMD subsequently announced a separate agreement with Meta under which the social-media giant intends to deploy up to 6 gigawatts of AMD GPUs.

​These deals strengthen AMD’s position as Nvidia’s most significant challenger in AI accelerators and provide substantial opportunities to capture a growing share of AI infrastructure spending. The company expects fourth-quarter 2026 revenue of around $17 billion at the midpoint of its guidance, implying roughly 65% year-on-year growth. However, AMD’s ability to narrow the gap with Nvidia will depend on product execution, supply availability and the continued pace of AI capital expenditure.

​According to LSEG Data & Analytics analysts have given the stock a ‘buy’ rating.

​2025-2026 AMD weekly candlestick chart

2. Broadcom Inc (NASDAQ: AVGO)

Broadcom Inc is a global technology company specialising in semiconductor solutions and infrastructure software, providing technologies that support data processing, networking, connectivity and enterprise IT operations. Its semiconductor business has become increasingly exposed to the rapid expansion of artificial intelligence, particularly through custom AI accelerators and AI networking solutions.

​Broadcom’s third-quarter fiscal 2026 results highlighted the strength of this AI-driven growth. Revenue surged 86% year-on-year to a record $29.6 billion, while net income rose 216% to $13.1 billion. Semiconductor solutions revenue jumped 127% to $20.8 billion, with AI semiconductor revenue reaching $16.7 billion, up 221% year-on-year. Management expects fourth-quarter revenue of around $34.8 billion, representing 93% annual growth, while AI semiconductor revenue is forecast to accelerate to $21.7 billion, up 236%.

​The company’s AI growth is being driven by strong demand for custom accelerators and networking from major technology companies and leading AI developers. Broadcom has also established an AI XPV platform designed to facilitate more than 20 gigawatts of compute capacity through 2028, highlighting the scale of its ambitions in AI infrastructure. Its infrastructure software business remains an important second growth engine, with third-quarter revenue rising 29% year-on-year to $8.75 billion.

​Broadcom’s quarterly dividend currently stands at $0.65 per share, following an increase from $0.59 previously. The company is due to report its fourth-quarter and full-year fiscal 2026 results on 9 December, when investors will be looking for evidence that the exceptional growth in AI accelerators and networking can continue.

​The share is currently rated as a ‘buy’ according to LSEG Data & Analytics.

​2025-2026 Broadcom weekly candlestick chart

3. Nvidia (NASDAQ: NVDA)

Nvidia is the world’s most valuable chipmaker and a dominant force in the global artificial intelligence industry, with its GPUs and networking technology powering everything from advanced computing and cloud infrastructure to generative AI applications. Its market capitalisation has surpassed $5 trillion, although the shares have recently come under pressure amid growing concerns over the sustainability of AI investment and spending.

​The company continues to deliver exceptional financial growth. In its second quarter of fiscal 2027, revenue surged 106% year-on-year to a record $96.2 billion, while data-centre revenue jumped 117% to $89 billion. Net income more than doubled to $59.7 billion, underlining the extraordinary demand for Nvidia's AI accelerators. The company expects AI infrastructure investment to remain strong as hyperscalers, AI labs and enterprises continue to expand their computing capacity.

​However, Nvidia now faces an additional and potentially significant corporate-governance and reputational risk following revelations surrounding CEO Jensen Huang. Huang has admitted to an extramarital relationship with Alice Huang, a former executive at Nvidia customer Megaspeed who US intelligence reportedly believes was recruited by Chinese intelligence. Nvidia's board has launched an independent investigation into whether Huang was targeted by a foreign intelligence operation, although the company says it has no reason to believe that Nvidia secrets or US national security information were compromised.

​The controversy comes at a particularly sensitive time for Nvidia, given Huang's central role in the company's extraordinary rise and its dealings with China and the US government over AI-chip export restrictions. Nvidia's competitive advantage remains formidable, with its CUDA software ecosystem, advanced GPUs and networking products creating a substantial moat around its AI business. Nevertheless, the investigation could increase scrutiny of the company's China operations and put additional pressure on the shares, while also raising questions about whether investors should place a greater discount on the key-person risk surrounding its highly influential CEO.

​Analysts polled by LSEG Data & Analytics analysts have given the stock a ‘buy’ rating.

​2025-2026 Nvidia weekly candlestick chart

4. Palantir Technologies (NASDAQ: PLTR)

Palantir Technologies is a software company focused on advanced data analytics and artificial intelligence. Its platforms, initially developed for US government and counter-terrorism applications, have expanded into defence, government and commercial markets, with its Artificial Intelligence Platform (AIP) increasingly helping businesses integrate AI into their operations.

​Palantir’s Q3 2026 results highlighted the extraordinary momentum behind its AI business. Revenue surged 96% year-on-year to $2.31 billion, while US revenue jumped 119% to $1.94 billion. US commercial revenue increased 148% to $984 million, overtaking government revenue for the first time, while adjusted operating income rose to $1.43 billion, giving the company a 62% adjusted operating margin. Palantir also raised its full-year 2026 revenue guidance to between $8.53 billion and $8.54 billion.

​The results demonstrate the accelerating adoption of Palantir’s AI software by businesses as well as government agencies. However, there are signs that investors may increasingly demand evidence that this exceptional growth can be sustained. US commercial contract-value growth slowed sharply in Q3, while the company’s shares remain priced at a very elevated valuation. That combination leaves Palantir particularly vulnerable to volatility if growth or new contract wins fall short of expectations.

​Palantir’s long-term prospects remain considerable, given its positioning at the intersection of enterprise software, AI and defence. Its ability to convert rapidly rising AI adoption into sustained revenue and earnings growth will be crucial, however, particularly with the stock carrying high expectations. For investors, the central question is therefore no longer whether Palantir can grow rapidly, but whether it can grow quickly enough to justify its premium valuation.

According to LSEG Data & Analytics analysts have given the stock a 'buy' rating.

​2025-2026 Palantir weekly candlestick chart

5. Super Micro Computer (NASDAQ: SMCI)

Super Micro Computer (Supermicro) is a leading provider of high-performance server, storage and data-centre solutions for cloud, enterprise and AI workloads. Its modular, energy-efficient systems are optimised for leading chips from Nvidia, AMD and Intel, while its Building Block Solutions and liquid-cooling technology allow customers to deploy large-scale AI infrastructure rapidly and efficiently.

​Supermicro’s latest results demonstrate the extraordinary acceleration in AI infrastructure demand. First-quarter fiscal 2027 revenue surged 298% year-on-year to a record $19.9 billion, while net income jumped to $1.59 billion from $168 million a year earlier. Gross margin improved to 12.7% from 9.3%, although it remained relatively modest compared with many technology companies. The company expects second-quarter revenue of $19.5 billion-$21.5 billion and has raised its fiscal 2027 revenue outlook to between $72 billion and $82 billion.

​The results underline Supermicro’s increasingly important role in the AI hardware supply chain, as hyperscalers and enterprises build out increasingly large computing clusters. The company says its Total AI and IT Data Center Solution strategy is gaining traction, with expanding enterprise partnerships and production capacity helping customers deploy AI infrastructure more quickly. Supermicro is also expanding its liquid-cooled, rack-scale systems, including solutions designed for Nvidia’s latest AI platforms.

​Despite the rapid growth, investors will continue to watch margins, cash generation and execution closely. Supermicro used $434 million of cash in operating activities during Q1, while its balance sheet held $6.9 billion of cash against $8.6 billion of bank debt and convertible notes. Nevertheless, with management forecasting up to $82 billion of fiscal 2027 revenue, Supermicro remains well positioned to benefit from the continued global build-out of AI data centres, although the scale and pace of its expansion also leave the company exposed to supply-chain, customer-concentration and margin risks.

​As reported by LSEG Data & Analytics, analysts have given the stock a ‘hold’ rating.

​2025-2026 Super Micro Computer weekly candlestick chart

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You can either invest in shares directly, which typically involves holding shares over several years with the view that it’ll increase in value over time. Or you can take a shorter-term approach and trade.

With trading, you can benefit from leverage. This allows you to take a position that’s greater than your initial deposit. For example, with 5:1 leverage, you could open a £5,000.00 position while only depositing £1,000.00 as ‘margin’. A 10% market movement could result in a 50% gain or loss on your deposited margin.

Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.

Best AI stocks to watch summed up

These are just a selection of some of the top AI companies to invest in. Always do your own research. Past performance is not a guide to future returns.

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Footnotes:

¹ Reuters, 2025