Investors are optimistic about AI stocks in 2026, with chip stocks considered better investments than AI infrastructure stocks. Software stocks are expected to emerge as winners this year, driven by increased spending in AI-related software. The relationship between chip stocks and infrastructure stocks will become clearer, favoring chip stocks. Key players in AI software include Palantir, OpenAI, Anthropic, among others.

The AI sector shows a distinct separation between AI infrastructure and semiconductors. Companies in AI infrastructure, like CoreWeave and Nebius, face higher risks due to significant spending on data centers. Semiconductors, on the other hand, have fewer risks and are benefiting from high demand for AI chips. Chip stocks are predicted to outperform infrastructure stocks in 2026.

Software stocks are expected to shine in the AI sector, with companies like Palantir, OpenAI, and Anthropic leading the way. Palantir’s revenue growth, along with other players’ revenue targets, indicate a promising future for AI software. Smaller software stocks like Appian, Amplitude, and Figma have strong potential for growth in 2026. Software industry success is crucial for the continued growth of the AI boom.

Read more at Nasdaq: Prediction: 2 Ways To Capitalize on AI Stocks in 2026