By Brett Schafer
Publication Date: 2025-12-22 23:05:00
These companies should have higher earnings power than Nvidia in 2026.
Is 2026 the year Nvidia finally underperforms versus the broad market? I think it might be.
The leader in artificial intelligence (AI) computer chips is unlikely to give up all its gains from the last few years, but it is facing increasing competition, a high starting valuation, and the potential of near-term overspending to build out AI infrastructure. That makes the stock risky for 2026.
That doesn’t mean you should dump your entire position. However, if you are thinking of buying AI stocks in 2026, there are two companies I believe will finish the year with larger market caps than Nvidia: Amazon (AMZN +0.47%) and Alphabet (GOOG +0.88%). Here’s why both are better buys than Nvidia today.
Today’s Change
(0.47%) $1.08
Current Price
$228.43
Alphabet’s AI comeback
Alphabet is the conglomerate that owns Google, YouTube, Android, Waymo, and other technology properties. It is one of the largest and most profitable companies in the world, with billions of users across multiple product lines.
Image source: Getty Images.
The stock was deemed a potential AI loser after ChatGPT came out and rapidly began taking market share of search and AI queries, with Alphabet falling flat-footed after the launch. Now, with the launch of updated Gemini AI models for text, images, and video creation (among…
