By Keithen Drury, The Motley Fool
Publication Date: 2026-01-29 20:20:00
Nvidia will have a great 2026, but you can’t go all-in on the stock.
Make no mistake. I think Nvidia (NVDA +0.63%) 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 (TSM 0.86%), Broadcom (AVGO 0.75%), and AMD (AMD 0.22%). 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.
Image source: Getty Images.
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 Manufacturing
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