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

Kevin Voigt Updated on January 19, 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)	65.62%	11.01	$362.75	297.43%	94.70%
Analog Devices (ADI)	26.15%	29.98	$300.25	28.55%	16.36%
Skyworks Solutions (SWKS)	-21.98%	12.94	$57.77	-24.73%	-11.20%
UiPath (PATH)	-12.99%	21.48	$14.34	25.94%	11.52%
Trimble (TRMB)	-9.25%	21.51	$73.89	11.17%	7.11%

*Updated on January 19, 2026.

Micron Technology (MU)

$362.75 USD +26.12 (7.76%)

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 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% 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	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

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 12% (29 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 D 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: 0.00%

Market Cap: $408.28 B (Mega Cap)
Projected EPS Growth:297.47%
Last Quarter EPS Growth:61.19%
Last EPS Surprise:22.25%
Next EPS Report date:March 19, 2026

Our Take:

Micron expects sustained AI-led data center buildouts to drive rising demand for high-performance memory. With industry supply remaining tight beyond 2026, expanding HBM, DRAM, and NAND capacity, multiyear customer agreements, and technology leadership are expected to support higher pricing, margins, cash flow, and revenue growth.

A Zacks Rank #1 (Strong Buy) reflects rising estimate revisions. Style Scores show A for Growth but D for Value and Momentum, a mix that fits an early-cycle memory upturn where earnings acceleration rather than near-term valuation often drives returns.

On the Price, Consensus & EPS Surprise chart, the shares of Micron trend higher while 2026–2027 consensus lines slope upward, signaling improving earnings visibility tied to AI-related mix and pricing. Short-term volatility remains possible due to the inherent cyclicality of the memory industry. However, strong demand visibility, tightening supply conditions, and rapidly rising AI-driven memory content collectively support a constructive near-term setup.

Analog Devices (ADI)

$300.25 USD -1.85 (-0.61%)

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 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% 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	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

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 13% (31 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 C Growth A 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:$147.02 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 is positioned to benefit as AI infrastructure expands, with data center exposure split between optical interfaces and power solutions. Management sees sustained momentum from higher-speed optical controllers and growing demand for power conversion, protection, and delivery, underpinning confidence in continued above-market growth over the coming years.

With a Zacks Rank #1, estimate revisions are moving favorably. Style Scores show A for Momentum alongside F for Value and C for Growth, consistent with a quality franchise seeing improving sentiment, while valuation reflects scarcity value in critical analog content.

The chart shows a sharp price upturn accompanied by early inflections higher in out-year estimates for 2026–2027. That alignment suggests rising conviction that AI-driven power and connectivity demand will offset cyclical pockets elsewhere. While execution and macro sensitivity remain watch items, strengthening revisions and strategic AI exposure support the near-term bull case.

Skyworks Solutions (SWKS)

$57.77 USD -0.69 (-1.18%)

3-Year Stock Price Performance

Premium Research for SWKS

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 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% 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	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

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 2% (6 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

B Value C Growth A Momentum A 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: 0.00%

Market Cap:$8.66 B (Mid Cap)
Projected EPS Growth:-24.79%
Last Quarter EPS Growth:37.86%
Last EPS Surprise:21.38%
Next EPS Report date:Feb. 4, 2026

Our Take:

Skyworks is positioned to benefit as connectivity intensity rises across mobile and broad markets amid AI push. Its expanding portfolio of Wi-Fi 6E and Wi-Fi 7 solutions, filtering, and diversified manufacturing footprint support higher performance networks, broader customer adoption, and sustained content expansion across smartphones, infrastructure, automotive, and IoT applications.

A Zacks Rank #1 aligns with improving estimates. Style Scores of B for Value, C for Growth, and A for Momentum indicate a balanced setup with reasonable valuation, rebuilding growth, and supportive technicals.

On the chart, the stock has traded range-bound while 2026–2027 consensus lines edge higher, suggesting fundamentals may be improving faster than price. As connectivity complexity increases across mobile and broad markets, expanding RF content and diversified end-market exposure could drive catch-up performance if estimate momentum persists, though reliance on a limited number of large customers remains an ongoing risk to monitor.

UiPath (PATH)

$14.34 USD -0.45 (-3.04%)

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 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% 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	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

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 25% (62 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 A 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: 3.48%

Market Cap:$7.67 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 is advancing its platform around agentic automation, orchestration, and AI-powered document processing, supported by expanding partner integrations. Continued ARR growth, strong net retention, and rising large-customer adoption position the company to scale autonomous workflows, broaden enterprise use cases, and drive sustainable revenue and margin expansion globally.

A Zacks Rank #1 signals positive estimate revisions despite mixed near-term growth. Style Scores of F for Value, D for Growth and A for Momentum reflect a sentiment recovery in a higher-multiple software name as investors refocus on platform leverage.

The chart shows shares stabilizing after a downtrend, with out-year estimates flattening and beginning to base. That pattern suggests expectations may have reset, leaving room for upside as UiPath expands agentic AI capabilities across its automation platform, including general availability of ScreenPlay for autonomous UI workflows and deeper integration of AI-driven document processing and orchestration.

Trimble (TRMB)

$73.89 USD -4.68 (-5.96%)

3-Year Stock Price Performance

Premium Research for TRMB

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 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% 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: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

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: Bottom 36% (157 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 50% (8 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 D Growth C 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: 1.91%

Market Cap:$17.58 B (Large Cap)
Projected EPS Growth:8.42%
Last Quarter EPS Growth:22.81%
Last EPS Surprise:12.50%
Next EPS Report date:Feb. 18, 2026

Our Take:

Trimble is focused on strengthening its Connect and Scale strategy by emphasizing a more software-led, recurring revenue model and a streamlined portfolio. Momentum is supported by strong bookings, increased cross-sell adoption across integrated platforms, and improving operating leverage, positioning the company for sustained value creation.

A Zacks Rank #2 (Buy) reflects favorable revisions versus peers. Style Scores of D for Value and Growth and C for Momentum indicate valuation and growth are not screening attractively, but momentum is improving as investors price in the software mix and recurring revenue.

In the chart, TRMB’s price has trended higher alongside modestly rising 2026–2027 estimates, reflecting strong software and recurring revenue momentum, continued bookings growth across integrated platforms, and operating margin expansion. This trend is supported by broad-based strength across AECO, Field Systems, and Transportation & Logistics, alongside growing adoption of integrated and cross-sell offerings.

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. 19, 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.