Tech hardware companies are expected to grow in 2026 due to increased data center spending. Many companies are still trying to obtain access to increased AI computing power. AI applications are just starting to roll out.

One manager, Daniel Loeb at Third Point, has over a quarter of his portfolio in five genius artificial intelligence (AI) stocks that could be primed to soar this year. Consider this list for new investment ideas in 2026.

Third Point’s concentration among five AI stocks: Amazon, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Meta Platforms. These companies represent three distinct industries in the AI space: hardware, facilitators, and applications.

Investing in hardware companies like Nvidia and Taiwan Semiconductor, as well as facilitators like Amazon and Microsoft, is recommended due to the expected rise in demand for AI computing capacity in the coming years.

Companies developing AI applications, like Meta Platforms, are integrating generative AI solutions to improve ad conversion and user engagement. Investing in application plays like Meta could lead to significant profits.

Consider the top 10 stocks identified by the Motley Fool Stock Advisor analyst team for potential monster returns in the coming years, with Nvidia not making the list. Join an investing community for individual investors to stay informed.

Investor Keithen Drury has positions in Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends and has positions in Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.

Read more at NASDAQ.: 26% of Billionaire Daniel Loeb’s Portfolio Is in These 5 Genius AI Stocks That Could Soar in 2026