Here's a Look at 10 Stocks to Watch in 2026: A Motley Fool's Guide
The stock market is set to continue its upward trajectory in 2026, making it an ideal time for investors to strategize their portfolio additions. With the potential for market pullbacks at any moment, having a well-prepared shopping list of stocks is a wise strategy. Here's a curated list of 10 stocks that I believe will outperform the market in the coming year, along with insights into why each one is worth considering.
Nvidia (NVDA):
Nvidia has been at the forefront of the artificial intelligence (AI) revolution since 2023, and this trend is expected to continue in 2026. The company's graphics processing units (GPUs) are in high demand from hyperscalers, who are investing record amounts in data centers. Nvidia's projections indicate that global data center capital expenditures could reach $3 trillion to $4 trillion by 2030, solidifying its position as a top stock to own in the AI era.AMD (AMD):
AMD has been a close competitor to Nvidia in the GPU market, and its recent advancements make it a strong contender. The company's management is confident in capturing a larger market share for new AI workloads, with data center revenue growth projected to reach a 60% compound annual growth rate over the next five years. This makes AMD a promising stock pick for 2026.Broadcom (AVGO):
Broadcom is taking a unique approach to AI computing by partnering with hyperscalers to design custom AI accelerators. These application-specific integrated circuits offer better performance and lower costs, even if they come at the expense of reduced flexibility. The company's AI semiconductor revenue soared 74% year-over-year in Q4 2025, and management expects this growth to accelerate to over 100% in Q1 2026.Taiwan Semiconductor Manufacturing (TSM):
Taiwan Semiconductor is a neutral player in the AI arena, making it a reliable investment as long as high AI infrastructure spending persists. The company is the world's largest chip foundry by revenue, and its dominance in the industry is unlikely to wane anytime soon. This makes Taiwan Semiconductor a strong choice for investors looking to capitalize on the AI boom.Alphabet (GOOG, GOOGL):
Alphabet is emerging as a significant player in the AI space with its generative AI model, Gemini. Initially seen as inferior to rivals, it is now recognized as a leader. Additionally, Alphabet's strong base business (Google Search) and cloud computing offering (Google Cloud) make it a well-rounded investment. The company's current performance and potential for growth make it a top contender for 2026.Meta Platforms (META):
Meta Platforms' stock took a hit after Q3 results, with the market reacting unfavorably to its high capital expenditure plans. However, this reaction overlooked the company's strong base business, which saw revenue rise 26% year-over-year. Meta's AI-driven growth is expected to continue in 2026, and investors should take advantage of the current stock discount as a buying opportunity.Amazon (AMZN):
Amazon's stock may have underperformed in 2025, but its business remained robust. The company's revenue grew at a 13% pace in Q3, driven by its advertising division and cloud computing segment, Amazon Web Services. Both these businesses are poised for growth in 2026, making Amazon a strong candidate to regain its momentum and outperform the market.PayPal (PYPL):
PayPal's stock has faced a 30% decline in 2025, but its business performance has been strong. The company delivered strong diluted earnings per share growth in 2025, and this trend is expected to continue in 2026, especially with its share buybacks. PayPal's stock is currently undervalued at 11.5 times forward earnings, making it an attractive buy.The Trade Desk (TTD):
The Trade Desk's stock has had a challenging year, falling around 70% due to a poorly executed platform migration. However, the company is expected to grow revenue at a 16% pace in 2026, according to Wall Street analysts. With a forward price-to-earnings ratio of 20, The Trade Desk is positioned to outperform in the coming year.MercadoLibre (MELI):
MercadoLibre, a Latin American e-commerce and fintech giant, has consistently delivered successful quarters. The stock is up 20% for the year but has experienced a 20% decline from its July high. MercadoLibre's dominance in Latin American e-commerce and its growth potential make it an excellent buying opportunity, especially during pullbacks.
Keithen Drury's Disclosures:
Keithen Drury holds positions in Alphabet, Amazon, Broadcom, MercadoLibre, Meta Platforms, Nvidia, PayPal, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, MercadoLibre, Meta Platforms, Nvidia, PayPal, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool also recommends Broadcom and specific options for PayPal.
