As we approach 2026, two stocks to watch are Alphabet (GOOG, GOOGL) and Taiwan Semiconductor (TSM). Alphabet has seen an 80% increase since July, with advancements in AI and potential new business units. Meanwhile, TSMC leads in chip manufacturing, with growing revenue and significant demand projected in the AI sector.

Alphabet’s cost-efficient tensor processing units give it an edge in AI computing, potentially expanding its business by selling TPUs to other companies. This strategic move, combined with its resources and advancements, positions Alphabet for success in 2026.

As major players in AI rely on chip providers like TSMC, the company stands out for its manufacturing capabilities and revenue generation. With increased demand for chips in the AI sector, TSMC’s growth trajectory is expected to continue in 2026 and beyond, making it a strong stock to consider.

Read more at Nasdaq: 2 Magnificent Artificial Intelligence Stocks to Buy in 2026