By Leo Sun
Publication Date: 2026-01-26 18:30:00
The two tech giants remain the most balanced plays in the booming AI market.
The artificial intelligence (AI) market expanded rapidly in recent years as sophisticated AI chatbots locked in hundreds of millions of users. That secular shift is driving more companies to upgrade their AI infrastructure and integrate more AI applications into their businesses.
According to Grand View Research, the AI market will continue to expand at a CAGR of 30.6% from 2026 to 2033. Two tech giants are well-positioned to profit from that boom: Nvidia (NVDA 0.50%) and Microsoft (MSFT +1.45%). Let’s see why both stocks will remain the “best in breed” plays on the growing AI application market this year.
Image source: Getty Images.
Nvidia still sells the best AI picks and shovels
Nvidia produces more than 90% of the world’s discrete GPUs. Unlike CPUs, which are optimized for sequential tasks, GPUs can handle a broad range of parallel tasks — which makes them well-suited for complex graphics, machine learning, and AI applications.
Today’s Change
(-0.50%) $-0.93
Current Price
$186.74
Key Data Points
Market Cap
$4.6T
Day’s Range
$185.99 – $189.12
52wk Range
$86.62 – $212.19
Volume
1.9M
Avg Vol
187M
Gross Margin
70.05%
Dividend Yield
0.02%
Nvidia once generated most of its revenue from gaming PCs, but its high-end data center GPUs now account for most of its top line. Most of the world’s leading AI software companies — including Microsoft, Meta, and Alphabet‘s Google — are spending billions of dollars on those…
