My Top 2 AI Stocks to Buy for 2026 (and Hold for Years)

Key Points
Nvidia is the largest public company in the world, yet it still trades at an affordable valuation given its earnings growth.
Meta Platforms has used AI to drive growth in impressions and conversions with its ads business.
- 10 stocks we like better than Nvidia ›
Like many investors, I've put a portion of my portfolio into artificial intelligence (AI) companies. AI technology seems to get more advanced with every new model, and the United Nations Trade and Development projects that the AI market will reach $4.8 trillion in 2033.
My top AI stocks are businesses that I believe have high growth potential over the next decade without carrying excessive risk. There are two in particular that look like fantastic investments right now, especially given the tech sector's recent downturn.
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1. Nvidia
Considering Nvidia (NASDAQ: NVDA) is the world's largest public company, you can't exactly say it's overlooked, but it may still be underestimated given the tremendous results it's delivering. Revenue is rapidly growing, most recently to $68.1 billion in the fourth quarter of its 2026 fiscal year (ended Jan. 25), a 73% year-over-year increase. The chipmaker also maintains strong margins, with gross margins reaching 75% in the same Q4 2026 period.
In total, Nvidia generated $215.9 billion in revenue during its 2026 fiscal year. And if CEO Jensen Huang is correct, sales growth isn't going to slow down from here. At the company's annual GTC conference, he said that he expects "at least $1 trillion" in revenue from data center products through 2027.
Even though Nvidia has a massive market cap, it still looks like a bargain when you factor in its projected earnings and earnings growth. It trades at 22 times forward earnings as of March 19, below fellow tech giant Alphabet and chipmaker Advanced Micro Devices. In addition, the company's forward-P/E-to-growth (PEG) ratio is below 0.4, indicating that you can buy Nvidia stock at a low price relative to its growth rate.
2. Meta Platforms
When I wrote that AI technology seems to get more advanced with every new model, Meta Platforms (NASDAQ: META) would be an exception. Earlier this month, reports emerged that it had to delay the launch of its next AI model, Avocado, due to performance issues. That's not exactly great news from a company projecting capital expenditures of up to $135 billion this year, primarily to fund AI infrastructure.
But the delay isn't a major issue, and the silver lining is that it made Meta shares even more affordable. The social media company is trading at 21 times forward earnings, making it even cheaper than Nvidia by that metric.
Meta has also been getting excellent results from AI so far, specifically with its ads business, which is its biggest source of revenue. Improvements in its Generative Ads Recommendation Model (GEM) led to a 3.5% increase in ad clicks on Facebook and an over-1% gain in conversions on Instagram in the fourth quarter of 2025. Meta's ad impressions increased by 18% that quarter, and the company also brought in a record $59.9 billion in revenue, a 24% year-over-year increase.
Nvidia and Meta are two very different types of AI companies. Nvidia supplies data center hardware, while Meta develops AI models and uses AI in its products and services. But they have a few important things in common: impressive revenue growth, strong margins, and reasonable valuations based on their forward earnings. They're two of my larger positions, as they're companies I feel comfortable holding for the long haul.
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Lyle Daly has positions in Alphabet, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.