Back to top

Image: Bigstock

3 AI Stocks Showing Strong Momentum Heading Into 2026

Read MoreHide Full Article

Key Takeaways

  • AMZN leverages AWS to offer critical cloud infrastructure for AI applications, driving stock performance.
  • VRT's essential power and cooling systems position it as a beneficiary of rising AI infrastructure demand.
  • MRVL's networking and custom chip solutions for AI data centers, strengthen its role in the AI ecosystem.

As 2026 approaches, it’s prudent for investors to choose stocks that are charged up for big gains. In that context, investors should choose stocks by applying Richard Driehaus’ “buy high and sell higher" theory, which has helped him earn a place in Barron’s All-Century Team. No doubt, it’s a proven investment strategy that can be used to identify the leading momentum stocks. 

To that end, Amazon.com, Inc. (AMZN - Free Report) , Vertiv Holdings Co (VRT - Free Report) and Marvell Technology, Inc. (MRVL - Free Report) have been selected as the momentum picks using the Driehaus strategy. These three stocks are also capitalizing on the current artificial intelligence (AI) boom to scale higher. Lest we forget, the global AI market is expected to reach $2,407.02 billion by 2032, up from $371.71 billion in 2025, according to MarketsandMarkets

A Detailed Look Into the Driehaus Strategy 

Regarding the strategy, Driehaus once said, “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American. 

The Association of Individual Investors (“AAII”) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy. 

It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend. 

Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.

Screening Parameters Using Research Wizard: 

To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential. 

Zacks Rank less than or equal to 2

Whether the market is good or bad, stocks with a Zacks Rank #1 or 2 have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here

Last 5-year average EPS growth rates above 2%

Strong EPS growth history ensures an improving business 

Trailing 12-month EPS growth greater than 0 and industry median 

Higher EPS growth compared to the industry average indicates superior earnings performance 

Last four-quarter average EPS surprise greater than 5%

Solid EPS surprise history indicates better price performance 

Positive percentage change in 50-day moving average and relative strength over 4 weeks 

Positive percentage change in the 50-day moving average and the relative strength signal uptrend 

Momentum Score equal to or less than B

A favorable momentum score indicates that it is ideal for taking advantage of the momentum with the highest probability of success. 

These few parameters have narrowed the universe of more than 7,743 stocks to only 47. 

Here are three of the 47 stocks:  

Amazon 

Amazon is a key player in AI, with its Amazon Web Services (AWS) cloud platform providing critical infrastructure for AI applications. AMZN has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for AMZN is 22.5%, on average.

Vertiv 

Vertiv plays a key AI role by providing essential power and cooling infrastructure for AI data centers. VRT has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for VRT is 14.9%, on average.

Marvell 

Marvell is a critical AI infrastructure player, powering data centers with networking and custom chip solutions. MRVL has a Zacks Rank #1 and a Momentum Score of A. The trailing four-quarter earnings surprise for MRVL is 1.2%, on average.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. 

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. 

Click here to sign up for a free trial to the Research Wizard today

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. 

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Marvell Technology, Inc. (MRVL) - free report >>

Vertiv Holdings Co. (VRT) - free report >>

Published in