Artificial intelligence has been the most consequential catalyst for the stock market that may surpass the dotcom boom when it’s all said and done. However, unlike the dotcom boom, the AI boom is fueled by revenue growth, successful products, and sustainable companies. Nvidia (NASDAQ:NVDA) has been the AI ringleader, but you might want to set your sights on other AI stocks for higher returns.
The one issue for Nvidia is that its market cap is approaching $5 trillion, and it gets progressively more difficult to move a stock that has a high market cap. Seeking smaller AI stocks can result in market outperformance, and it’s the smaller companies that may produce much higher gains than Nvidia in 2026 and beyond.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is the second-largest AI chipmaker by market cap and has outperformed Nvidia this year. Shares are up by 53% so far, and the strong demand for AI chips suggests that Broadcom can build on its gains.
The tech giant posted 22% year-over-year revenue growth in the third quarter, while more than quadrupling its net income. Broadcom’s surging profit margins and revenue growth come amid the company’s AI segment growing by 62% year-over-year.
Hot growth from Broadcom’s AI business can propel the rest of the company. AI represented $5.2 billion of the company’s $16.0 billion in Q3 revenue. As AI revenue continues to grow, it should push overall revenue growth higher and put it in a position to outperform Nvidia.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) has lagged other AI stocks for a while, but it’s finally starting to gain momentum on positive developments. The stock has more than doubled year-to-date as it aims to become the new leader in the $1 trillion compute market. AMD mentioned in its bold claim that it aims to deliver 35% compounded annual revenue growth or higher in the long run. It also expects a 60% CAGR for its data center business.
It’s normal for companies to give modest growth rates that they exceed when it’s time to view earnings results. AMD’s decision to promise high growth rates right away suggests that real growth rates may be higher, and it implies a good multi-year run for the stock.
AMD’s third quarter results add more fuel to the company’s long-term goals. Revenue increased by 36% year-over-year, while net income surged by 61%. These growth rates suggest AMD can march higher and outperform Nvidia in 2026.
IREN (IREN)
While AI chips have been the main bottleneck for many years, there is a new bottleneck that can present a tremendous long-term opportunity for investors. All of those AI chips need enough energy to operate effectively, and IREN (NASDAQ:IREN) is uniquely positioned to deliver.
The crypto miner turned into an AI data center play and recently signed a $9.7 billion deal with Microsoft (NASDAQ:MSFT) that lasts for five years. IREN has only used up 16% of its 3 gigawatts, and the Microsoft deal only covers 200 megawatts. In other words, IREN already has the capacity to sign several deals like the Microsoft one, and it still has a multi-gigawatt development pipeline.
Microsoft CEO Satya Nadella addressed the power concerns in a podcast interview with OpenAI co-founder Sam Altman.
“The biggest issue we are now having is not a compute glut, but it’s the power and…the ability to get the builds done fast enough close to power. So if you can’t do that, you may actually have a bunch of chips sitting in inventory that I can’t plug in,” Nadella said.
That’s good news for IREN, which is one of the leaders that is providing gigawatts to tech giants. It may also set up IREN to outperform Nvidia in 2026, just as it has done this year with more than 400% in year-to-date gains.
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