Artificial intelligence (AI) stocks are facing market skepticism, but record-setting capital expenditures by AI hyperscalers in 2026 indicate a strong AI buildout. Stocks like Nvidia and Broadcom are set to benefit from this spending, making them attractive buys.

Amazon, Alphabet, and Meta Platforms are among the top AI hyperscalers spending billions on computing equipment in 2026. With Amazon expecting to spend $200 billion, Alphabet up to $185 billion, and Meta up to $135 billion, AI spending is expected to remain significant.

Nvidia and Broadcom are positioned for growth with Nvidia offering GPUs and Broadcom partnering with AI hyperscalers to design custom chips. Both companies are expected to see significant revenue growth this fiscal year, making them worthwhile investments in the AI sector.

Despite strong growth prospects, Nvidia and Broadcom stocks are trading at cheap valuations. With Wall Street analysts predicting 52% revenue growth for both companies, now may be an opportune time to invest in these AI stocks for long-term gains.

Investors should consider buying stock in Nvidia, which is poised for growth in the AI sector. While it wasn’t among the 10 best stocks identified by The Motley Fool Stock Advisor team, historical returns show the potential for significant gains with the right investments.

Read more at Nasdaq: 2 No-Brainer Artificial Intelligence (AI) Stocks to Buy Hand Over Fist in February