Investors are eyeing potential top performers for 2026 as the year comes to a close, anticipating a Santa Claus rally. Three stocks to watch are Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), and Alphabet (NASDAQ: GOOGL). Getting in early on these picks could lead to strong returns.

Nvidia’s dominance in GPUs and generative AI technology faces challenges from competitors like AMD and custom AI accelerators. However, with high demand for cloud GPUs, the AI buildout bull case remains strong, making Nvidia a solid stock pick for 2026.

Alphabet’s TPU collaboration with Broadcom and potential direct sales to Meta Platforms could open new revenue streams. With strong Q3 performance and ongoing success, Alphabet’s stock is expected to keep rising in 2026, especially with potential business wins and the success of its TPUs.

Taiwan Semiconductor (TSMC) plays a crucial role in the AI race by fabricating chips for companies like Nvidia and Alphabet. TSMC’s new 2-nanometer chips offer energy efficiency, vital for the AI buildout’s growth. As AI hyperscalers increase data center spending, TSMC is poised to benefit, making it a top stock pick for 2026.

Read more at Nasdaq: 3 Genius Stocks to Buy Before 2025 Is Over