Three Smart Stock Picks for 2026

As we move deeper into 2026, investors are reassessing their portfolios and looking for the best stock buys that can deliver meaningful returns. The investment landscape continues to shift with artificial intelligence and cloud computing reshaping how companies create value. For those ready to deploy capital wisely right now, three compelling opportunities stand out.

Alphabet: Leading the AI Revolution Forward

Alphabet has emerged as one of 2025’s strongest performers, with shares climbing over 60% throughout the year. This remarkable trajectory reflects several converging developments in the company’s business that positioned it as an AI leader heading into 2026.

Google Search remains the foundation, generating consistent revenues and unmatched market dominance. Beyond this core strength, Alphabet has developed Gemini, a competitive generative AI platform that directly challenges market perceptions about the company’s innovation capabilities. The company is also exploring selling its custom Tensor Processing Units (TPUs) to external clients, a strategic move that could unlock new revenue streams in the booming AI infrastructure market.

These advances have resolved lingering doubts about Alphabet’s direction entering 2026. Wall Street analysts project revenue growth of nearly 14% next year, a solid pace for a mature technology giant. This growth rate should enable the stock to cross the 10% annual return threshold that many individual investors target when selecting stocks to buy and hold. Alphabet’s transformation from perceived AI laggard to industry leader sets the stage for sustained upward momentum in the years ahead.

Taiwan Semiconductor: The Indispensable Chip Manufacturer

The competition for computing dominance between Nvidia’s GPUs and emerging alternatives like Alphabet’s custom chips will likely continue indefinitely. However, one constant remains: Taiwan Semiconductor Manufacturing controls where the world’s most advanced chips get produced.

As the world’s largest semiconductor foundry by revenue, Taiwan Semiconductor is the essential supplier for high-performance computing chips deployed in AI data centers globally. The company’s fortunes are directly tied to continued AI infrastructure investment, and all major hyperscalers have signaled that 2026 will bring another year of record capital expenditures on AI computing capacity.

This predictable demand backdrop combined with an attractive valuation—trading at less than 23 times next year’s projected earnings—makes Taiwan Semiconductor one of the most compelling stock buys available right now. With massive technology spending expected to sustain throughout 2026, the company is positioned to deliver strong returns.

Amazon: Primed for a Meaningful Recovery

After a disappointing 2025 where the stock essentially traded sideways, Amazon appears ready to reverse course in 2026. This setup is particularly compelling when examining the company’s most profitable and fastest-growing divisions.

Amazon Web Services (AWS), the cloud computing arm, generated the majority of operating profits in Q3 while expanding revenue at a 20% clip—significantly outpacing the company’s overall 13% growth rate. When your most profitable business unit is also your fastest grower, that’s a bullish signal for investors.

The advertising business represents another bright spot. Amazon’s ad division grew 24% in Q3 and has expanded to represent a meaningful portion of overall profits. This accelerating advertising segment simultaneously improves company margins while providing diversified revenue streams.

The combination of AWS strength and advertising momentum creates multiple catalysts for 2026. If these divisions maintain their impressive growth trajectories, Amazon has excellent potential to deliver the comeback performance that will make it one of the best stock buys for patient investors.

Final Thoughts on Your Investment Strategy

Finding the right stock picks right now means balancing near-term market trends with long-term business fundamentals. These three stocks—Alphabet, Taiwan Semiconductor, and Amazon—all offer compelling investment theses backed by concrete data points and sustainable growth drivers. Consider them carefully as part of your 2026 stock-buying strategy.