Broadcom’s AI-related order backlog is higher than ever.
Microsoft is poised to benefit from the increasing adoption of agentic AI.
The demand for Nvidia’s GPUs continues to soar.
10 stocks we like better than Broadcom ›
Artificial intelligence (AI) stocks have been massive winners in recent years. However, few have been hotter than Palantir Technologies(NASDAQ: PLTR). The AI software provider’s shares have skyrocketed more than 23x over the last three years.
Palantir’s momentum may continue this year. The consensus 12-month price target for the stock reflects a potential upside of around 14%. But analysts don’t think it will be the best AI stock to own going forward. Here are three AI stocks that will trounce Palantir in 2026, according to Wall Street.
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Broadcom(NASDAQ: AVGO) has been one of the best-performing AI stocks not named Palantir over the last 12 months. Demand for its AI semiconductors has been robust, helping drive the company’s overall revenue 28% higher year over year in the fourth quarter of 2025.
Wall Street expects Broadcom to go even higher in 2026. The average price target for the stock is roughly 38% higher than the current share price. One especially bullish analyst predicts that Broadcom’s stock could soar by nearly 62% over the next 12 months.
The enthusiasm for Broadcom on Wall Street is broad. Of the 50 analysts surveyed by S&P Global(NYSE: SPGI) in January, all but two rated the stock as a “buy” or “strong buy.” The two exceptions recommended holding Broadcom.
Is this bullish exuberance justified? I think so. Broadcom’s total AI-related order backlog topped $73 billion at the end of 2025. CEO Hock Tan said in the Q4 update, “We have never seen bookings of the nature than what we have seen over the past three months.” Tan expects AI chip revenue to double in the first quarter of 2026.
Microsoft(NASDAQ: MSFT) has been a laggard among AI stocks over the last 12 months. Shares of the tech giant increased by only a single-digit percentage during the period. That could soon change, if Wall Street is right.
The consensus price target for Microsoft reflects a potential upside of around 38%. Support among analysts for the stock is even stronger than for Broadcom. S&P Global surveyed 58 analysts in January who cover Microsoft. Forty-five of them rated the stock a “buy,” with 12 rating it a “strong buy.” The lone outlier recommended holding Microsoft.
Generative AI continues to provide a significant tailwind for the company. Microsoft’s Azure and other cloud services revenue jumped 40% year over year in the first quarter of fiscal 2026, which ended Sept. 30, 2025.
I’m not sure if Microsoft’s share price will rise quite as much as Wall Street expects over the next 12 months. However, I think the stock remains an excellent pick for investors, especially as agentic AI adoption increases.
Nvidia‘s (NASDAQ: NVDA) performance has trailed Palantir’s over the last 12 months. However, the GPU maker has had greater momentum in recent months. Analysts anticipate that this momentum will continue in 2026.
The average price target for Nvidia is roughly 36% above its current share price. The most optimistic analyst believes the stock could skyrocket almost 90% over the next 12 months. As was the case with Broadcom and Microsoft, the support for Nvidia is broad-based. Of the 64 analysts surveyed by S&P Global in January, 60 rated the stock as a “buy” or better.
It isn’t surprising that Wall Street likes Nvidia so much. The company’s revenue jumped 62% year over year and 22% quarter over quarter in the third quarter of 2025, with most of the growth stemming from the data center market. CEO Jensen Huang proclaimed in the quarterly update, “Blackwell sales are off the charts, and cloud GPUs are sold out.”
Could the demand for Nvidia’s GPUs slow in 2026? Maybe, but I don’t think so. My hunch is that analysts are correct that Nvidia will deliver greater gains than Palantir this year.
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Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft, Nvidia, Palantir Technologies, and S&P Global. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
3 AI Stocks That Will Trounce Palantir in 2026, According to Wall Street was originally published by The Motley Fool
