Nvidia has entered 2026 with strong demand as more companies adopt its accelerated computing solutions for AI workloads. At the recent CES 2026 show, management stated that demand for its Blackwell platform remains robust, with its next-generation Vera Rubin systems expected to roll out in the second half of 2026.
Last quarter, management said Blackwell and Rubin together support revenue visibility of roughly $500 billion through 2026. Of this, $150 billion in orders had already been shipped through the third quarter of fiscal 2026, which ended on October 26, 2025.
The company is focusing on selling entire AI server systems, including computing hardware and supporting infrastructure, not just individual chips. This shift further strengthens Nvidia's role in global data center construction.
Beyond adding more computing power, Nvidia is improving the economics of running AI systems. The company has designed the Rubin platform as a six-chip system that integrates CPU and GPU computing capabilities, networking hardware, and data center infrastructure.
Management says the Rubin system offers dramatic improvements in processing more AI work and meaningful reductions in cost per unit of AI output compared to the Blackwell system. These efficiency gains will become even more meaningful as AI workloads increasingly shift toward inference and newer areas of the technology.
Hence, although Nvidia may not repeat the outsize returns of earlier years, it is still well positioned to capture a significant share of the estimated $3 trillion to $4 trillion in global AI infrastructure spending expected by the end of 2030.
Alphabet has entered 2026 with a highly profitable digital advertising business that continues to fund its broader AI ambitions. Digital ads still account for nearly three-quarters of the company's revenue. With the global digital advertising industry estimated to have a nearly 15.4% CAGR through 2030, the company remains in position to deliver sustained growth in the coming years.
AI is also expanding Alphabet's core Search business, rather than disrupting it. The company has rolled out AI Overviews and AI Mode, features that use the technology to summarize answers and guide users within search results. These capabilities are driving incremental growth in the volume of search queries, including commercial queries.
The company has said that AI Overviews monetizes at the same rate as traditional search, even when advertisements are integrated in AI responses. So Alphabet is scaling up AI engagement without sacrificing earnings potential.
Google Cloud is also proving to be a major growth engine. Alphabet exited the third quarter of fiscal 2025 with $155 billion in cloud backlog, driven by strong demand for enterprise AI infrastructure.
Demand is also strong for the company's cost-effective tensor processing units and GPUs, as well as its Gemini family of models, core cloud infrastructure and services, and cybersecurity and data analytics capabilities. That backlog has resulted in impressive revenue visibility for 2026.
The company also exited the third quarter with $98.5 billion in cash on its balance sheet. With robust capabilities to fund aggressive AI investment while also continuing dividends and share buybacks, Alphabet appears to be a no-brainer pick for 2026.
Broadcom has also emerged as a crucial enabler of global AI infrastructure, as hyperscalers increasingly design and deploy custom AI chips at scale in huge, tightly interconnected AI-optimized networks. In its fiscal 2025, which ended on November 2, 2025, the company's AI revenue increased 65% year over year to $20 billion, driven by robust demand for its custom AI chips, high-speed networking solutions, and optical interconnects.
Broadcom also enjoys exceptional revenue visibility of nearly $73 billion for its AI business, which is expected to be shipped in the next 18 months. While $53 billion is the custom AI chip backlog, the remaining is for all other AI-related components. Hence, the company's first-quarter fiscal 2026 AI semiconductor revenue guidance of $8.2 billion, which represents almost 100% year-over-year growth, seems easily achievable.
Management is also focusing on diversifying its hyperscaler customer base beyond its three prominent clients. In the fourth quarter of fiscal 2025, the company secured a $10 billion rack-scale order and another $11 billion order for late 2026 delivery from Anthropic, its fourth major customer. Broadcom has also acquired a fifth hyperscaler customer with a $1 billion custom AI chip order for delivery in late 2026.
The company is also playing a crucial role in resolving the bandwidth and latency challenges in large-scale AI networks. Its AI switch backlog was over $10 billion at the end of fiscal 2025, driven primarily by the rapid adoption of its Tomahawk 6 switch.
Broadcom stock trades at 23.7 times forward earnings, which is not cheap. However, considering its numerous tailwinds, the company appears well positioned to continue its durable role in the global AI market, making it a good pick even at elevated valuations.