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Best AI Stocks to Buy Now Before they Soar like TSMC
Key Takeaways
Investors should buy AI stocks in 2026 after Taiwan Semi's earnings report.
Buy AI infrastructure stock Vertiv now on the dip before it soars again.
Why chip stock AMD looks like a great AI stock to buy in 2026.
Investors might want to start buying the best AI stocks after Taiwan Semiconductor posted blockbuster, artificial intelligence-boosted fourth-quarter results on Thursday.
The semiconductor foundry giant that manufactures Nvidia’s AI chips offered impressive guidance, confirming that the AI arms race remains full steam ahead in 2026.
Check out the Zacks Earnings Calendarto stay ahead of market-making news.
Taiwan Semi (TSM - Free Report) and other semiconductor and AI stocks soared on Thursday as Wall Street races into best-in-class AI stocks before the AI hyperscalers such as Amazon and Alphabet start reporting.
Let’s dive right into a few of the best AI stocks (Vertiv and AMD) that investors should consider buying right now after Taiwan Semi raised its outlook on bullish AI growth in 2026.
Why Investors Must Buy AI and Tech Stocks in 2026
Lower interest rates and strong earnings growth are the lifeblood of stock market bull runs.
December’s CPI data shows that inflation remains in check, further cementing Wall Street bets that the Fed will lower rates again in 2026.
On top of that, total S&P 500 earnings are expected to grow 12.8% in 2026, boosted by 20% Tech sector expansion, with 14.8% earnings growth projected in 2027. These outlooks would top 2025’s 12.1% projected bottom-line expansion, highlighting the massive AI-boosted run.
Image Source: Zacks Investment Research
Wall Street is increasingly upbeat about forecasted earnings expansion across the entire economy. All 16 Zacks sectors are projected to post positive earnings growth for the first time since 2018.
The chart below highlights how much the Tech sector’s 2026 earnings outlook has improved from early July until now, as demonstrated by the Mag 7.
Image Source: Zacks Investment Research
These earnings estimates are likely to improve since they don’t factor in the broadly bullish guidance Taiwan Semi provided for the entire AI and tech economy.
TSMC, which makes the cutting-edge chips for Nvidia, Apple, and others, raised its 2026 capex guidance to $52 billion to $56 billion, blowing away 2025's $40.9 billion. TSMC expects its revenue to climb another 30% in 2026, with sales set to expand at a CAGR of ~25% from 2024 to 2029.
Buy AI Infrastructure Stock VRT Before It Soars Again
Vertiv Holdings Co (VRT - Free Report) is a technology infrastructure and continuity solutions firm that’s transformed into a must-buy picks and shovels AI stock. VRT works directly with Nvidia (NVDA - Free Report) to help solve critical behind-the-scenes challenges in the AI data center world, such as cooling.
The tech company is poised to be a long-term AI winner no matter how the technology evolves from the current large language models (LLMs) and which AI companies eventually dominate.
Vertiv is an AI darling that has soared over 1,000% in the past three years. Yet, its average Zacks price target offers 15% upside from its current price, and it's down 12% from its October highs even as Taiwan Semi and other AI stocks skyrocket to fresh peaks to start 2026.
Image Source: Zacks Investment Research
The AI infrastructure company’s portfolio of hardware, software, analytics, and ongoing services is built around power, cooling, and IT infrastructure. The Ohio-based firm’s growing portfolio helps make sure the high-density computing power that drives technological innovation and the economy is running as smoothly as possible 24/7.
Vertiv is projected to grow its revenue by 28% in 2025 and 22% in FY26 to $12.43 billion—more than doubling its sales between 2022 and 2026.
The behind-the-scenes AI stock is expected to grow its adjusted EPS by 45% and 29%, respectively, following 60% growth in 2024 and 236% expansion in 2023—climbing from $0.53 in 2022 to $5.33 in FY26.
Image Source: Zacks Investment Research
The AI data center infrastructure company’s upward earnings revisions earn VRT a Zacks Rank #2 (Buy). Vertiv found support at its January 2025 breakout levels several times over the last few months.
The tech stock looks ready to possibly surge to new highs before or after its Q4 earnings release (due on Feb. 11, according to the Zacks earnings calendar) as it attempts to move meaningfully above its 50-day moving average.
The pullback, mixed with its strong earnings outlook, has VRT trading at a 25% discount to its highs at 32.5X forward earnings. Vertiv is also far from overheated in terms of RSI levels, even as many other AI stocks look a bit bloated in the short run.
Buy AI Chip Stock and Nvidia Rival AMD Now and Hold
Advanced Micro Devices (AMD - Free Report) designs high-performance semiconductors. Most importantly for investors, AMD is attempting to eat away at its much larger rival Nvidia’s dominance in the AI chip market.
AMD remains far behind AI chip leader Nvidia in terms of market share. But being second best in the AI chips race is hardly a bad place to be, considering the long-term upside. AMD boasts that its expanding portfolio of AI-optimized CPUs, GPUs, networking, and software solutions help power “billions of experiences across cloud and AI infrastructure” and beyond.
Image Source: Zacks Investment Research
The AI chip company posted strong Q3 results and provided a bullish long-term outlook in early November. AMD outlined its “long-term plan to expand data center and AI leadership with greater than 35% revenue CAGR and greater than $20 non-GAAP EPS target” over the “next three to five years.”
AMD grew its revenue from $6.7 billion in 2019 to $25.8 billion in 2024, benefitting from the expansion of data centers, gaming, PCs, and more. The GPU giant is projected to grow its revenue by 32% in 2025 and 28% in 2026 to reach a whopping $43.43 billion.
Its earnings growth outlook is also robust, with AMD expected to boost its EPS by 20% in FY25 and 58% in 2026 to reach $6.26 a share vs. $3.31 in 2024. The chart below highlights that AMD’s earnings are projected to climb to well over $12 a share over the next several years.
Image Source: Zacks Investment Research
AMD stock blew away the Tech sector and every Mag 7 company outside of Nvidia over the past decade, having soared ~11,400%. The AI chip stock’s impressive run includes a 97% surge in the past 12 months, more than doubling Nvidia. Despite the run, its average Zacks price target offers 28% upside from its current levels.
The AI chip company recently found support near its long-term 21-week moving average and its early 2024 highs (which it climbed back above in October). This technical backdrop, coupled with the fact that it trades at a 50% discount to its five-year highs at 40X 12-month earnings, could mean AMD is ready to post new highs sooner than later. AMD reports its Q4 results on Tuesday, February 3.
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Best AI Stocks to Buy Now Before they Soar like TSMC
Key Takeaways
Investors might want to start buying the best AI stocks after Taiwan Semiconductor posted blockbuster, artificial intelligence-boosted fourth-quarter results on Thursday.
The semiconductor foundry giant that manufactures Nvidia’s AI chips offered impressive guidance, confirming that the AI arms race remains full steam ahead in 2026.
Check out the Zacks Earnings Calendar to stay ahead of market-making news.
Taiwan Semi (TSM - Free Report) and other semiconductor and AI stocks soared on Thursday as Wall Street races into best-in-class AI stocks before the AI hyperscalers such as Amazon and Alphabet start reporting.
Let’s dive right into a few of the best AI stocks (Vertiv and AMD) that investors should consider buying right now after Taiwan Semi raised its outlook on bullish AI growth in 2026.
Why Investors Must Buy AI and Tech Stocks in 2026
Lower interest rates and strong earnings growth are the lifeblood of stock market bull runs.
December’s CPI data shows that inflation remains in check, further cementing Wall Street bets that the Fed will lower rates again in 2026.
On top of that, total S&P 500 earnings are expected to grow 12.8% in 2026, boosted by 20% Tech sector expansion, with 14.8% earnings growth projected in 2027. These outlooks would top 2025’s 12.1% projected bottom-line expansion, highlighting the massive AI-boosted run.
Image Source: Zacks Investment Research
Wall Street is increasingly upbeat about forecasted earnings expansion across the entire economy. All 16 Zacks sectors are projected to post positive earnings growth for the first time since 2018.
The chart below highlights how much the Tech sector’s 2026 earnings outlook has improved from early July until now, as demonstrated by the Mag 7.
Image Source: Zacks Investment Research
These earnings estimates are likely to improve since they don’t factor in the broadly bullish guidance Taiwan Semi provided for the entire AI and tech economy.
TSMC, which makes the cutting-edge chips for Nvidia, Apple, and others, raised its 2026 capex guidance to $52 billion to $56 billion, blowing away 2025's $40.9 billion. TSMC expects its revenue to climb another 30% in 2026, with sales set to expand at a CAGR of ~25% from 2024 to 2029.
Buy AI Infrastructure Stock VRT Before It Soars Again
Vertiv Holdings Co (VRT - Free Report) is a technology infrastructure and continuity solutions firm that’s transformed into a must-buy picks and shovels AI stock. VRT works directly with Nvidia (NVDA - Free Report) to help solve critical behind-the-scenes challenges in the AI data center world, such as cooling.
The tech company is poised to be a long-term AI winner no matter how the technology evolves from the current large language models (LLMs) and which AI companies eventually dominate.
Vertiv is an AI darling that has soared over 1,000% in the past three years. Yet, its average Zacks price target offers 15% upside from its current price, and it's down 12% from its October highs even as Taiwan Semi and other AI stocks skyrocket to fresh peaks to start 2026.
Image Source: Zacks Investment Research
The AI infrastructure company’s portfolio of hardware, software, analytics, and ongoing services is built around power, cooling, and IT infrastructure. The Ohio-based firm’s growing portfolio helps make sure the high-density computing power that drives technological innovation and the economy is running as smoothly as possible 24/7.
Vertiv is projected to grow its revenue by 28% in 2025 and 22% in FY26 to $12.43 billion—more than doubling its sales between 2022 and 2026.
The behind-the-scenes AI stock is expected to grow its adjusted EPS by 45% and 29%, respectively, following 60% growth in 2024 and 236% expansion in 2023—climbing from $0.53 in 2022 to $5.33 in FY26.
Image Source: Zacks Investment Research
The AI data center infrastructure company’s upward earnings revisions earn VRT a Zacks Rank #2 (Buy). Vertiv found support at its January 2025 breakout levels several times over the last few months.
The tech stock looks ready to possibly surge to new highs before or after its Q4 earnings release (due on Feb. 11, according to the Zacks earnings calendar) as it attempts to move meaningfully above its 50-day moving average.
The pullback, mixed with its strong earnings outlook, has VRT trading at a 25% discount to its highs at 32.5X forward earnings. Vertiv is also far from overheated in terms of RSI levels, even as many other AI stocks look a bit bloated in the short run.
Buy AI Chip Stock and Nvidia Rival AMD Now and Hold
Advanced Micro Devices (AMD - Free Report) designs high-performance semiconductors. Most importantly for investors, AMD is attempting to eat away at its much larger rival Nvidia’s dominance in the AI chip market.
AMD remains far behind AI chip leader Nvidia in terms of market share. But being second best in the AI chips race is hardly a bad place to be, considering the long-term upside. AMD boasts that its expanding portfolio of AI-optimized CPUs, GPUs, networking, and software solutions help power “billions of experiences across cloud and AI infrastructure” and beyond.
Image Source: Zacks Investment Research
The AI chip company posted strong Q3 results and provided a bullish long-term outlook in early November. AMD outlined its “long-term plan to expand data center and AI leadership with greater than 35% revenue CAGR and greater than $20 non-GAAP EPS target” over the “next three to five years.”
AMD grew its revenue from $6.7 billion in 2019 to $25.8 billion in 2024, benefitting from the expansion of data centers, gaming, PCs, and more. The GPU giant is projected to grow its revenue by 32% in 2025 and 28% in 2026 to reach a whopping $43.43 billion.
Its earnings growth outlook is also robust, with AMD expected to boost its EPS by 20% in FY25 and 58% in 2026 to reach $6.26 a share vs. $3.31 in 2024. The chart below highlights that AMD’s earnings are projected to climb to well over $12 a share over the next several years.
Image Source: Zacks Investment Research
AMD stock blew away the Tech sector and every Mag 7 company outside of Nvidia over the past decade, having soared ~11,400%. The AI chip stock’s impressive run includes a 97% surge in the past 12 months, more than doubling Nvidia. Despite the run, its average Zacks price target offers 28% upside from its current levels.
The AI chip company recently found support near its long-term 21-week moving average and its early 2024 highs (which it climbed back above in October). This technical backdrop, coupled with the fact that it trades at a 50% discount to its five-year highs at 40X 12-month earnings, could mean AMD is ready to post new highs sooner than later. AMD reports its Q4 results on Tuesday, February 3.