Best AI stocks to watch in Q1 2026
Advanced Micro Devices, Broadcom, Intel, Nvidia, Palantir Technologies and Super Micro Computer may be the best AI stocks to watch.
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Advanced Micro Devices, Broadcom, Intel, Nvidia, Palantir Technologies and Super Micro Computer rank among the most compelling AI stocks to monitor. All of these feature prominently - except Intel with a very small weighting -feature among the top-weighted holdings in the iShares Future AI and Tech ETF.
Artificial Intelligence (AI) is rapidly emerging as the market’s next dominant investment theme. After years of chasing disruptive tech trends - from cryptocurrencies and Web3 to blockchain and the Metaverse - investors appear ready to redirect their attention towards the next transformative force.
While those earlier concepts have faded as the era of ultraloose monetary policy has ended, AI is now powering the next leg of growth for major technology companies. In fact, seven firms accounted for 64% of the S&P 500’s gains in 2024, each benefiting - directly or indirectly - from the AI boom. The trend continued in 2025 with AI-related firms contributing roughly 60% of the index’s returns.
What sets AI apart is that it is already embedded across a vast array of real-world applications: entertainment, social media, retail, security, sports analytics, manufacturing, autonomous vehicles, healthcare, warehousing, and many more sectors.
Every Netflix recommendation, every loyalty-card purchase and every football match is analysed with increasing sophistication to generate better data and insights. Consumers have long sensed this shift, but the sector’s true investment catalyst has only recently arrived.
That catalyst is ChatGPT. Developed by OpenAI and released on 30 November 2022, it is a large language model that amassed over one million users within five days - compared with Facebook’s 10 months and Netflix’s three and a half years.
Now serving more than 800 million weekly active users, ChatGPT has sparked debate over whether jobs in fields such as copywriting, accounting, personal training and even software development could be fundamentally reshaped or displaced. Some even speculate that ChatGPT could challenge Google’s long-held dominance in search.
If that seems far-fetched, it is worth remembering the extraordinary pace of technological change over the past half-century, the many careers rendered obsolete along the way, and the fact that Google once overtook Yahoo in similar fashion.
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 (NASDAQ: AMD)
Advanced Micro Devices (AMD) is a semiconductor firm specialising in high-performance computing and graphics processing - both critical to the evolution of AI technology. The company’s introduction of 3D V-Cache technology in its EPYC processors has enhanced data storage efficiency and boosted performance by up to 66%, providing a significant lift to AI workloads.
The company’s Q3 results saw revenue increase by close to 36%, reaching $9.24 billion, despite R&D expense rising by 56% to roughly $2.14 billion. Operating profit was up 30.5% year-on-year - to $2.24 billion - in Q3, having dropped by 29% to $897 million in Q2, mainly due to an $800 million inventory charge from US export restrictions on its MI308 AI chips, lower gross margins, and higher operating expenses.
Despite these challenges, AMD remains one of the few companies producing chips powerful enough to support advanced AI systems. As AI evolves, the company stands to benefit from major tech firms such as Alphabet, Meta and Microsoft ramping up their AI investment budgets.
AMD’s share price surged by roughly 40% in the second week of October 2025, hitting record highs after the company announced a multi-year AI chip supply agreement with OpenAI - a deal that included a warrant allowing OpenAI to purchase about 10% of AMD’s shares and firmly repositioned AMD as a key force in AI infrastructure.
Our analysts have given the stock a buy rating.
2025 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 help manage data and streamline operations across broadband, networking, wireless and enterprise software markets.
In its fourth quarter and fiscal year 2025 financial results Broadcom projected better-than-expected revenue but warned of weaker quarterly margins, sending shares down about 5% in after-hours trading.
President and CEO Hock Tan said that “we see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches.” That guidance for its AI book of business is an impressive 20% above the fourth-quarter consensus estimate.
Looking ahead, analysts expect this momentum to continue into 2026, forecasting an approximate 25% Q1 revenue increase to $18.75 billion and pre-tax profit rise to $11.33 billion.
Management also announced a higher quarterly dividend, raising it to $0.65 from $0.59.
The stock is currently rated as a buy according to LSEG Data & Analytics.
2025 Broadcom weekly candlestick chart
3. Intel (NASDAQ: INTC)
Intel Corporation, one of the world’s leading semiconductor makers, has long been recognised for its dominance in computer processors and integrated hardware.
In recent years, the company has shifted its strategy to compete more aggressively in the AI and data-centre markets, investing heavily in advanced manufacturing and next-generation chip designs. Its Gaudi series and forthcoming Falcon Shores accelerators are intended to challenge Nvidia and AMD by delivering cost-efficient performance for enterprise and cloud-scale AI workloads.
In Q3 quarterly update, Intel delivered mixed results. Q3 2025 revenue rose modestly to $13.65 billion, supported by significant cost reductions in R&D and MG&A expenses which fell sharply compared with a year ago. Operating profit, which declined by $503 million due to ongoing heavy capital spending and pricing pressures in the PC segment in Q2, sky-rocketed to $1.52 billion in Q3. It rose largely due to a rebound in its Client Computing Group, where higher-margin CPUs improved income, and stronger Data Center & AI demand, driven by AI-related cloud growth and increased uptake of its Xeon-6 processors, which boosted revenue and margins.
Intel’s broader strategy now focuses on regaining technological leadership through innovation and strategic partnerships. The company has secured agreements with major hyperscalers to deploy its Gaudi 3 accelerators at scale and is leveraging its 18A process node to manufacture cutting-edge chips for third-party customers.
Analysts note that Intel’s diversified portfolio - spanning PC processors, AI accelerators, networking solutions and foundry services - gives it a distinctive, vertically integrated advantage over fabless rivals.
Intel’s share price has rebounded strongly in 2025, rising more than 100% since mid-year as investor confidence improved in its turnaround plan and AI roadmap.
Sentiment has been further lifted by optimism surrounding the foundry business and early performance results from Gaudi 3, which have shown significant efficiency gains in large-scale AI training. With additional AI-focused product launches expected in 2026, Intel appears to be regaining momentum in the rapidly evolving AI hardware landscape.
According to LSEG Data & Analytics, Intel has a hold rating but our analysts have given the stock a buy rating.
2025 Intel weekly candlestick chart
4. Nvidia (NASDAQ: NVDA)
Nvidia is widely recognised as the world’s most valuable chipmaker – briefly hitting a market cap of a staggering $5 trillion - with its technology powering everything from smartphones and automobiles to advanced computing systems.
The company delivered a strong Q3 performance, posting a 62% jump in revenue, following a 55% rise in Q2 and 69% increase in Q1. Soaring demand for its AI-focused data-centre hardware - particularly GPUs and servers for cloud and generative-AI workloads - drove a record $51.2 billion in data-centre sales, which accounted for the bulk of the quarter’s $57.0 billion revenue.
While the emergence of DeepSeek in 2025 has raised questions about whether demand for Nvidia’s chips may be overstated, major tech giants like Alphabet and Meta continue to invest heavily in its hardware to support both internal AI development and consumer-facing applications.
As AI adoption accelerates across industries, demand for Nvidia’s chips is likely to grow further - and critically, the company benefits from a substantial competitive moat, reinforcing its position as the foundational “bricks and mortar” provider of AI infrastructure.
Our analysts have given the stock a buy rating.
2025 Nvidia weekly candlestick chart
5. Palantir Technologies (NASDAQ: PLTR)
Palantir Technologies is a software company focused on advanced data analytics and artificial intelligence. Its flagship platform was initially deployed by the US government for counter-terrorism purposes, but the firm has since broadened its reach to serve local authorities and private-sector organisations.
The company’s Q3 2025 results showed strong momentum, with revenue climbing close to 63% year over year to $1.18 billion and operating profit rising more than 100% to $600.5 million, driven by rapid expansion in both its US commercial and government businesses and fuelled by strong demand for its AI-driven platforms and increased adoption of its enterprise AI products.
Although Palantir’s potential is considerable and its recent performance underscores its position as a leader in AI-powered data analytics, its elevated valuation remains a concern for some investors, as it may contribute to short-term volatility. The company’s long-term success will depend on its ability to consistently outperform profit expectations.
Our analysts have given the stock a hold rating.
2025 Palantir weekly candlestick chart
6. Super Micro Computer (NASDAQ: SMCI)
Super Micro Computer (Supermicro) is a leading provider of high-performance server and storage systems built for cloud, enterprise and AI workloads. Widely regarded as a foundational player in the AI hardware ecosystem, the company supplies the infrastructure powering advanced computing clusters for major technology companies and research institutions worldwide. Its modular, energy-efficient server designs - optimised for Nvidia, AMD and Intel chips - allow rapid deployment of large-scale AI training environments, cementing its role as a key supplier within the fast-growing AI supply chain.
In its Q1 quarterly update, Supermicro reported further expansion, with revenue rising 8% year-on-year to $5.75 billion on strong demand for AI-focused servers equipped with Nvidia’s H100 and forthcoming Blackwell GPUs. However, net income declined nearly 36% to $260.7 million and gross margins slipped to 9.5%, as management warned that component shortages and extended delivery timelines may temporarily pressure results while production capacity is scaled to meet exceptional demand.
Supermicro continues to benefit from close partnerships with major semiconductor companies and its reputation for delivering integrated, power-efficient data-centre solutions. The firm recently announced manufacturing expansions in Malaysia and Silicon Valley, with plans to triple output by mid-2026. This growth, combined with advances in liquid-cooling and rack-scale AI systems, reinforces its position as a crucial enabler for hyperscalers and enterprises building out next-generation AI infrastructure.
Supermicro’s share price has seen comparatively modest gains, climbing around 11% in 2025, as investors reacted to booming AI infrastructure demand and speculation that it may become a takeover candidate or strategic partner for a major chipmaker seeking greater vertical integration. With global AI data-centre investment accelerating, Supermicro remains well-positioned to benefit from the sustained buildout driving the next phase of AI deployment.
Our analysts have given the stock a hold rating.
2025 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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