Best Artificial Intelligence (AI) Stocks to Buy Now January 2026

Kevin Voigt Updated on January 26, 2026

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Since Chat GPT was released to the public in November 2022, the value of artificial intelligence (AI) stocks has skyrocketed.

The best example is the story of a once relatively unknown chipmaker, NVIDIA. Valued at just over $10 billion in early 2015, the company had just crossed the threshold as a Large Cap stock. In 2025, NVIDIA became the first company to cross a market value of $5 trillion, leap-frogging tech titans like Apple and Microsoft thanks to the AI wave.

Many more companies are investing heavily into supporting AI goods and services. Last year alone, US private AI investment grew to $109.1 billion, according to Stanford University’s 2025 AI Index Report.

How to best capitalize on the growth of AI stocks? Here, we analyze and rank the best AI stocks to buy now based on our proprietary Zacks Indicator Score (to see a full list of AI stocks, visit our Artificial Intelligence thematic stock screen).

5 Best AI Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
Micron Technology (MU)	78.60%	12.08	$389.13	298.99%	96.18%
Lam Research (LRCX)	38.41%	44.94	$222.87	17.13%	14.88%
NVIDIA (NVDA)	-7.32%	40.24	$186.47	55.97%	62.91%
UiPath (PATH)	-6.68%	22.17	$14.91	25.94%	11.52%
Analog Devices (ADI)	30.53%	30.52	$304.01	28.55%	16.93%

*Updated on January 26, 2026.

Micron Technology (MU)

$389.13 USD -10.52 (-2.63%)

3-Year Stock Price Performance

Premium Research for MU

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 26% (64 out of 244)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value A Growth C Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.80%

Market Cap: $449.81 B (Mega Cap)
Projected EPS Growth:299.03%
Last Quarter EPS Growth:61.19%
Last EPS Surprise:22.25%
Next EPS Report date:March 19, 2026

Our Take:

Micron makes memory essential to AI workloads, with HBM3E designed into AMD’s Instinct and NVIDIA's H200/Blackwell platforms, providing direct exposure to accelerator demand across hyperscalers and enterprise AI. That integration, paired with broader HBM ramps, positions Micron to benefit as training and inference intensify.

Secular AI capacity builds, and tight supply discipline remains constructive for HBM/DRAM pricing and mix, a setup that can extend margin recovery through the cycle. Micron’s continued HBM capacity investments reinforce multiyear visibility as customers scale next-gen GPU and ASIC roadmaps.

A Zacks Rank #1 (Strong Buy) reflects positive estimate revisions; the A Growth Score supports earnings acceleration, while D Value and C Momentum Scores argue for patience on pullbacks. On the Price, Consensus & EPS Surprise chart, price rises alongside sharply higher 2026–2027 EPS lines, evidence of estimate momentum that aligns with the Rank and supports the near-term case.

Lam Research (LRCX)

$222.87 USD +4.93 (2.26%)

3-Year Stock Price Performance

Premium Research for LRCX

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 18% (45 out of 244)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value A Growth A Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 1.41%

Market Cap:$273.74 B (Large Cap)
Projected EPS Growth:17.15%
Last Quarter EPS Growth:-5.26%
Last EPS Surprise:4.13%
Next EPS Report date:Jan. 28, 2026

Our Take:

Lam Research supplies etch, deposition, and advanced-packaging tools that enable AI chips and high-bandwidth memory, with a share in innovations like gate-all-around and copper plating for 3D integration. These vectors should lift wafer-fab intensity as AI nodes proliferate.

Recent updates highlight growing orders tied to advanced packaging and GAA as customers add AI capacity. Investments to extend leadership across these inflection points position Lam to benefit as AI architectures demand new processes and packaging steps.

A Zacks Rank #1 with Style Scores of A for both Growth and Momentum indicates strengthening revisions and technicals, while a Value score of F reflects richer multiples, which is typical of upcycles. The chart shows shares climbing alongside rising out-year EPS estimates into 2026–2027, a constructive alignment of price and estimates that supports the Rank and maintains a favorable setup for continued AI-related earnings expansion.

NVIDIA (NVDA)

$186.47 USD -1.20 (-0.64%)

3-Year Stock Price Performance

Premium Research for NVDA

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 7% (16 out of 244)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value B Growth D Momentum D VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 2.11%

Market Cap:$4,560.38 B (Mega Cap)
Projected EPS Growth:55.85%
Last Quarter EPS Growth:25.25%
Last EPS Surprise:4.84%
Next EPS Report date:Feb. 25, 2026

Our Take:

NVIDIA designs GPUs, systems, networking, and software that underpin modern generative-AI infrastructure. Its Blackwell platform and GB200 Grace Blackwell superchips are being adopted by major clouds, while Spectrum-X expands NVIDIA’s reach into high-performance Ethernet for AI data centers. Microsoft has previewed GB200-based Azure instances, underscoring platform pull from hyperscalers.

Beyond hardware, NVIDIA’s moat includes its CUDA stack and NIM inference microservices, which aim to speed enterprise deployment and deepen recurring software ties. Recent moves to secure downstream capacity, including a $2 billion investment in CoreWeave, reinforce demand visibility for AI “factories.”

A Zacks Rank #1 signals persistent upward estimate revisions. Style Scores of F for Value, B for Growth, and D for Momentum fit a premium, growth-led franchise rather than a traditional value setup. The chart shows a sustained price uptrend alongside step-ups in out-year EPS estimates into 2026–2027, aligning estimate momentum with performance.

UiPath (PATH)

$14.91 USD +0.11 (0.74%)

3-Year Stock Price Performance

Premium Research for PATH

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 30% (74 out of 244)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value D Growth F Momentum F VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 3.48%

Market Cap:$7.91 B (Mid Cap)
Projected EPS Growth:26.42%
Last Quarter EPS Growth:200.00%
Last EPS Surprise:14.29%
Next EPS Report date:March 11, 2026

Our Take:

UiPath offers an AI-powered automation platform that unifies robotic process automation with agentic AI, enabling enterprises to orchestrate software robots and AI agents across systems and data.

Strategically, UiPath is leaning into orchestration as a moat. Maestro now coordinates AI agents, apps, and workflows, with Autopilot speeding design and governance at scale. The company added bidirectional integration with Microsoft Copilot Studio and introduced a connector for NVIDIA NIM/Nemotron, while Google Cloud collaborations showcase vertical agents such as medical-record summarization, broadening adoption paths.

A Zacks Rank #1 reflects favorable estimate revisions, while Style Scores of F for Value and Momentum, and D for Growth suggest a transition from stabilization to reacceleration as AI capabilities roll through the portfolio. The chart shows a base-building price pattern while 2026–2027 EPS estimates edge higher, a constructive divergence that supports the Rank and leaves room for sentiment to improve with delivery.

Analog Devices (ADI)

$304.01 USD -1.59 (-0.52%)

3-Year Stock Price Performance

Premium Research for ADI

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 9% (22 out of 244)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value C Growth D Momentum D VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 2.57%

Market Cap:$149.64 B (Large Cap)
Projected EPS Growth:28.50%
Last Quarter EPS Growth:10.24%
Last EPS Surprise:1.80%
Next EPS Report date:Feb. 18, 2026

Our Take:

Analog Devices supplies high-performance analog, mixed-signal, and power-management chips that translate real-world signals for AI, spanning data-center power delivery to edge robotics and sensing. The company is leaning into AI infrastructure with solutions for next-generation 800-VDC architectures, hot-swap protection, and first-stage power that improve safety and efficiency for rack-scale distribution as power densities rise.

ADI is collaborating with NVIDIA on Jetson Thor–based humanoid and mobile robots, combining its sensing, motion control, and deterministic connectivity with NVIDIA’s compute stack. Design tools simplify advanced power architectures. CHIPS Act proposed support of up to $105 million for U.S. manufacturing boosts capacity and supply resilience.

A Zacks Rank #1 reflects positive estimate revisions, while Style Scores of D for Value and Momentum, and C for Growth indicate investors are paying for strategic positioning rather than classic value traits. The chart shows shares trending higher as out-year EPS estimates recover and rise after a prior reset.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

Selections for Best AI Stocks are based on the current top ranking stocks based on Zacks Indicator Score. For this list, only companies that have average daily trading volumes of 100,000 shares or more and at least five analysts covering the stock were considered. All information is current as of market open, Jan. 26, 2026.

Guide to AI Stocks

The classification of “AI Stocks” is actually quite broad, ranging from companies that provide the essential hardware, companies that create the software to run Large Language Models, and a whole host of other industries and companies that are creating the Artificial Intelligence ecosystem. All stand to gain – or lose – depending on the fortunes of AI tech.

Types of AI Stocks

Hardware (GPUs, Chips) Stocks – NVIDIA, AMD, TSMC, Broadcom

The backbone of AI is raw computing power, and this comes primarily from specialized chips like graphics processing units (GPUs) and AI-focused accelerators. NVIDIA (NVDA) is the undisputed leader in GPUs used for training large language models.

Advanced Micro Devices (AMD) is a rising competitor, with its MI300 series targeting data center AI workloads. Taiwan Semiconductor Manufacturing Co. (TSMC) doesn’t make its own chips but manufactures advanced nodes for nearly every big tech firm—including Apple, Nvidia, and AMD—making it critical to the global AI supply chain. Broadcom (AVGO) has carved a niche in custom ASICs (application-specific integrated circuits) for hyperscale cloud providers, which value tailored chips that reduce energy use and maximize throughput.

These companies benefit from structural demand for more computing capacity, but they also face geopolitical risks such as U.S.-China export restrictions and cyclical swings in semiconductor demand.

AI Cloud & Infrastructure – Microsoft, Amazon, Alphabet

Building AI applications at scale requires massive computing infrastructure. Azure from Microsoft (MSFT) has become a leader by integrating OpenAI’s models directly into its cloud offerings, giving it a first-mover advantage in AI enterprise adoption. Amazon Web Services, a subsidiary of Amazon (AMZN) is deploying its in-house Trainium and Inferentia chips, aiming to lower costs for AI workloads while retaining dominance in cloud services. Alphabet’s (GOOG) Google Cloud is leaning heavily on its proprietary Tensor Processing Units (TPUs) and Gemini AI models to differentiate itself.

Investing in these players is less about speculative growth and more about diversified tech giants whose AI investments bolster an already profitable core business.

Enterprise AI Software & Analytics – Palantir, C3.ai, Adobe, Snowflake

AI isn’t just about hardware; software platforms are where businesses actually apply machine intelligence. Palantir (PLTR) powers decision-making for defense and large corporations with its Foundry and Gotham platforms. C3.ai (AI) focuses specifically on AI-driven applications across industries like energy, finance, and manufacturing. Adobe (ADBE) has integrated AI across its creative suite (e.g., Firefly in Photoshop), while Snowflake (SNOW) has added AI-enabled analytics to its cloud data warehousing business.

These stocks tend to have higher growth potential but also higher risk, as adoption timelines and customer budgets can vary widely.

Cybersecurity AI – CrowdStrike

The rise of AI also heightens cyber risks. CrowdStrike (CRWD) leads in AI-powered threat detection, using machine learning to flag suspicious behavior across millions of endpoints in real time. With ransomware and nation-state attacks increasing, demand for AI-driven security remains strong. Cybersecurity names often benefit from recurring revenue models, which may help smooth out volatility compared to hardware peers.

Benefits and Risks of AI Stocks

Benefits:

Secular Growth: AI adoption is still in early innings, with enterprise use cases expanding rapidly.
Diversified Exposure: Investors can target infrastructure, software, or services depending on risk tolerance.
First-Mover Advantage: Leaders like NVIDIA and Microsoft are shaping the ecosystem, creating strong economic moats.

Risks:

Valuations: Many AI leaders are priced for perfection, leaving little margin of safety.
Hype Cycle: Investor enthusiasm may outrun near-term fundamentals, creating bubble risk.
Regulation: Governments are exploring AI rules around privacy, bias, and national security, which could reshape business models.
Competition: Barriers to entry are high, but fast innovation means today’s leader can quickly lose ground.

How to Choose AI Stocks

When evaluating AI stocks, consider:

Revenue Mix: How much of the company’s growth is truly driven by AI vs. traditional segments?
Moat & Differentiation: Does the company control unique technology (like NVIDIA’s CUDA software ecosystem)?
Customer Adoption: Look for companies with recurring contracts or wide adoption across industries.
Financial Health: Strong balance sheets matter in a capital-intensive industry.
Valuation Metrics: Compare price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and forward growth projections to industry peers.

How to Invest in AI Stocks

There are multiple entry points depending on your goals:

Direct Stock Picks: Best if you want concentrated exposure to specific company leaders or disruptors.
AI Exchange-Traded Funds (ETFs): ETFs such as Global X Robotics & Artificial Intelligence ETF (BOTZ) or iShares Robotics and AI ETF (IRBO) provide diversification by investing in a broad range of companies in the AI space.
Broad Tech ETFs: Like Invesco QQQ (QQQ) or Vanguard Information Technology ETF (VGT), offering AI exposure as part of a bigger tech basket.
Dollar-Cost Averaging (DCA): A strategy to smooth price volatility by buying at regular intervals AI stocks or funds.
Long-Term Holds: Since AI is a multi-decade trend, investors who can weather short-term swings may see the best results.

AI Stocks Alternatives

If you want exposure to AI without betting on a single stock:

ETFs: Offer diversification and reduce single-company risk.
Private Markets: Startups in robotics, generative AI, and enterprise AI could offer upside, though access is limited to accredited investors, which face income or licensing limitations (such as a net worth of $1 million, excluding primary residence, plus a high annual income – $300,000 if married.
Picks-and-Shovels Plays: Companies supplying infrastructure, like power management (e.g., Eaton) or data center REITs (e.g., Equinix), benefit indirectly from AI growth.

Strategies for AI Stocks Moving Forward

Barbell Approach: Combine stable mega-caps (Microsoft, Nvidia) with speculative names (Quantum Computing Inc., Credo) for balanced exposure.
Rebalancing: Trim positions after strong rallies to lock in gains and redeploy into underweighted sectors.
Monitor Earnings: Focus on whether AI adoption translates into sustainable revenue growth.
Look Beyond the U.S.: Consider emerging AI leaders in Europe and Asia for diversification.
Stay Agile: AI is evolving rapidly; reassess holdings every quarter as new winners emerge.

Frequently Asked Questions About AI Stocks

Are AI stocks overvalued?

Many AI leaders are priced at steep multiples compared to the broader market. That doesn’t mean all are bubbles, but investors should separate hype from earnings-driven growth.

What is the forecast for AI stocks?

Most analysts expect AI demand to expand through at least the next decade, with data center spending, AI-as-a-service, and AI-enabled enterprise tools driving revenue.