Beyond Nvidia: 3 Alternative AI Stocks That Will Soar in 2026

Make no mistake. I think Nvidia (NASDAQ: NVDA) will be an excellent stock to own in 2026. It has strong tailwinds blowing in its favor and top-notch execution. However, putting all of your eggs in one basket is a disaster waiting to happen. So, investors need some alternative AI stocks to diversify a bit in the artificial intelligence (AI) space.

Three stocks that I think can make for strong alternative investments to Nvidia are Taiwan Semiconductor (NYSE: TSM), Broadcom (NASDAQ: AVGO), and AMD (NASDAQ: AMD). All three of these companies are set to soar on similar tailwinds as Nvidia, and I think each makes for a great buy right now.

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1. Taiwan Semiconductor

Nvidia only designs its chips; it doesn't actually make them. That's where a chip foundry business like Taiwan Semiconductor comes in. It manufactures chips for nearly every major computing company, including Broadcom and AMD. It is the largest foundry in the world by revenue and holds a massive market share in its industry thanks to its consistent technological advancements and strong production fields.

AI revenue has been a huge boost for TSMC, and management projects the compounded annual growth rate (CAGR) for AI chips from 2024 to 2029 will be nearly 60%. For 2026, they expect strong growth of nearly 30% year over year, making it a great stock to own.

Taiwan Semiconductor is also fairly cheap, trading for 23.4 times forward earnings. That's nearly as cheap as the S&P 500, which trades at 22.2 times forward earnings. Taiwan Semiconductor is a great investment alternative to Nvidia, and I think owning both is a smart move.

2. Broadcom

Broadcom, a new arrival in the AI computing space, is taking a different approach from Nvidia or AMD. It's partnering directly with the AI hyperscalers to design a custom computing chip that meets their needs. These ASICs (application-specific integrated circuits) are optimized for a single workload type and excel at those. The most famous example is Google's tensor processing units (TPUs), which have long been Alphabet's secret weapon (although not really that secret) in delivering leading AI technology.

Although Broadcom has some other legacy business units, the company is quickly transforming into a chip business. In the fourth quarter, AI semiconductor revenue was $6.5 billion, up 74% year over year. In total, Broadcom's revenue was $18 billion, so 36% of revenue came from its AI semiconductor division. For Q1, they expect $8.2 billion in AI semiconductor revenue, up 100% year over year. For the entire company, they expect $19.1 billion, so AI semiconductors would make up 43%.

This is quickly growing to become a large part of Broadcom's business. The company is an excellent alternative investment to Nvidia because it's playing the same trend in a different way, with more specialized computing units.

3. AMD

AMD has been in second place to Nvidia since the AI arms race kicked off in 2023. However, it's looking to win some new business with the various improvements it has made with its graphics processing units (GPUs) and technology stack. It's not going to be easy, and AMD's biggest advantage is that it doesn't charge as much for its products as Nvidia.

AMD's ticket to becoming a winner is by being the cheaper alternative when resources are going to get tight, while AI hyperscalers are trying to maximize computing power. There's only so much cash to go around, and AMD might see a resurgence as a result. However, there's no guarantee that this will happen, and I see AMD as a lesser alternative to Nvidia stock than Taiwan Semiconductor or Broadcom. However, I still think it's a worthwhile investment.

Management believes its data center division can deliver a 60% CAGR through 2030. If it delivers that, the stock will be a must-own. AMD is a bet on a comeback, and if it works out, it could deliver the best returns of any of the stocks on this list.

Keithen Drury has positions in Alphabet, Broadcom, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.