The Best AI Stocks to Buy for 2026: Infrastructure Plays Over AI Applications

The technology sector’s dominance in 2025 wasn’t accidental. With the Nasdaq-100 posting a solid 20% gain for the year, much of that momentum came from generative artificial intelligence enthusiasm. However, investors looking to capitalize on the AI megatrend should focus on a counterintuitive strategy: buying the tools and hardware that power AI systems rather than the AI companies themselves. Companies like OpenAI and Anthropic are burning through billions quarterly just to develop their AI capabilities, with capital flowing primarily toward expensive computing infrastructure. This dynamic creates a compelling investment thesis—the real profits lie in the foundational hardware layer. Let’s examine two compelling AI stocks to buy that exemplify this infrastructure-focused approach: Broadcom and Micron Technology.

Why Custom Chips Represent the Future: The Broadcom Opportunity

When enterprises deploy artificial intelligence at scale, they need specialized processors. While graphics processing units have historically dominated this space—particularly Nvidia’s offerings—a more efficient alternative is emerging: application-specific integrated circuits, or ASICs. These custom-designed chips deliver substantial cost and efficiency advantages compared to general-purpose solutions.

Broadcom has strategically positioned itself as the leading manufacturer of these tailored silicon solutions. Unlike Nvidia, which designs chips and outsources production, Broadcom manufactures custom semiconductor designs created specifically for its enterprise clients. This business model aligns perfectly with the industry’s growing need for cost optimization. As the software side of the AI industry grapples with significant losses, companies are intensely motivated to squeeze efficiency from their hardware spending.

The company’s recent momentum validates this thesis. In the latest quarter, Broadcom reported revenue of $18 billion, representing 28% year-over-year growth. More impressively, AI semiconductor revenue surged 74% year-over-year to $6.5 billion—demonstrating how quickly custom chip demand is accelerating. Major clients including OpenAI have committed to building specialized AI chips with Broadcom, with initial deployments expected to launch this year. With a forward price-to-earnings multiple of 33, the valuation reflects legitimate growth expectations grounded in real market traction.

The Overlooked Value Play: Micron Technology’s Memory Advantage

While custom processors grab headlines, memory hardware forms the essential backbone of any AI infrastructure. From data storage to training large language models, the demand for high-speed memory is exploding. Micron Technology, which has engineered DRAM and NAND flash memory for decades, stands at the epicenter of this transformation.

The most striking aspect of Micron as an AI stocks investment opportunity is its valuation disconnect. Following a remarkable 400% gain over the past twelve months, the company’s shares surprisingly trade at just a 13 forward price-to-earnings multiple—a dramatic discount compared to the S&P 500’s average of 22. This divergence suggests the market hasn’t fully recognized Micron’s competitive position in the AI era.

Traditionally, memory chip manufacturing suffered from commoditization and razor-thin margins, creating intense competitive pressure. Generative AI is fundamentally altering this dynamic. According to analysis from Mizuho Financial Group, NAND memory prices could surge 330% year-over-year in 2026, with another 50% increase expected in 2027 as major cloud providers race to expand their data center capacity. Global memory hardware shortages are expected to persist well into 2026, potentially extending beyond. For a company with Micron’s manufacturing scale, this environment translates into both pricing power and volume growth—a rare combination in the semiconductor sector.

Comparing Your AI Stocks to Buy: Which Offers Better Value?

Both Broadcom and Micron represent compelling ways to gain exposure to the artificial intelligence opportunity. Yet they occupy different positions in the risk-reward spectrum. Broadcom offers higher growth visibility through custom chip adoption among enterprise giants, though its valuation already reflects considerable optimism. Micron presents a more compelling value proposition with a significantly lower valuation, suggesting the market has underestimated how substantially its profit margins could expand in the current environment. Given the expected persistence of memory shortages throughout 2026 and possibly beyond, Micron appears positioned for more explosive near-term appreciation.

Ready to Make Your AI Stocks Investment?

Before deploying capital into memory chip specialists like Micron Technology, it’s worth considering professional guidance. The Motley Fool Stock Advisor team has identified what they view as the 10 best stocks to purchase today—and Micron Technology was not among their recommendations. These selected stocks could generate exceptional returns over coming years.

Consider the track record: Netflix appeared on their best-stocks list on December 17, 2004; a $1,000 investment at that time would now be worth $450,256. Nvidia made their recommendation list on April 15, 2005; that same $1,000 would have grown to $1,171,666 by February 2026. The Stock Advisor service has delivered a 942% average return—substantially outperforming the S&P 500’s 196% return over the comparable period.

Whether you’re hunting for emerging AI stocks to buy or seeking validation of existing positions, accessing their latest list of 10 stocks could prove invaluable. The Stock Advisor community brings together individual investors who actively research and debate the most promising opportunities in today’s market.

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Analysis as of February 2, 2026