Best Stocks to Invest in 2026: AI Infrastructure Leaders Reshaping Tech

Artificial intelligence has emerged as the defining investment megatrend of this decade, attracting capital toward companies positioned at the core of the AI revolution. However, not all AI-related equities offer equal potential. The most compelling prospects lie with firms addressing the infrastructure bottlenecks driving AI expansion. Two standout candidates—one focused on energy supply and another on chip architecture—represent the best stocks to invest in for those seeking substantial long-term returns in the coming years.

The common thread connecting these opportunities is clear: AI infrastructure remains severely capacity-constrained. Data centers consume unprecedented power, while the specialized hardware powering AI workloads commands premium valuations. Companies solving these dual challenges position themselves for exponential revenue growth throughout 2026 and beyond.

Powering AI Growth: The Energy Infrastructure Play

Iren (NASDAQ: IREN) has transitioned from cryptocurrency mining into a critical role as an AI data center energy provider. With a 3-gigawatt development pipeline already secured, the company addresses what may be the most pressing limitation to AI expansion: reliable power supply at scale.

The mathematics are compelling. Iren’s five-year agreement with Microsoft—valued at $9.7 billion—allocates 200 megawatts of capacity and generates $1.94 billion in annual recurring revenue alone. The company’s April 2026 Sweetwater 1 facility launch will add 1.4 gigawatts, theoretically supporting seven additional contracts of similar magnitude to the Microsoft deal.

Management has guided toward $3.4 billion in annual recurring revenue by end-of-2026, while currently utilizing only 16% of its grid-connected power capacity. This suggests massive headroom for expansion. The company previously forecast $200-250 million in annual recurring revenue by end-2025, indicating it’s tracking to substantially exceed both prior guidance and new targets. For investors analyzing the best stocks to invest capital into, Iren’s contracted revenue visibility and underdeveloped asset base represent a rare combination of near-term visibility and long-term runway.

The Chip Architecture Advantage

Broadcom (NASDAQ: AVGO) operates as the architect of customized AI silicon for major technology platforms. Unlike generalist chip designers, Broadcom engineers purpose-built processors addressing the specific computational requirements of cloud giants—a competitive moat that continues widening.

Recent financial results underscore this advantage. The company’s fiscal 2025 Q4 revenues jumped 28% year-over-year, with AI-segment sales accelerating 74% in the same period. More impressively, guidance projects AI revenue will more than double sequentially in fiscal 2026 Q1. Simultaneously, Broadcom has nearly doubled net income year-over-year and approaches 50% net profit margins—a margin profile typical of market-dominant technology franchises.

The stock’s five-year performance reflects this operational excellence: a near-700% return demonstrates that market leaders can indeed extend their advantage across full market cycles. Broadcom’s status as a best-in-class stock to invest in appears sustainable given its technical moat, customer concentration among mega-cap tech firms, and accelerating demand cycles.

Comparing Investment Approaches

These two holdings represent fundamentally different angles on the AI infrastructure opportunity. Iren offers exposure to the raw capacity expansion phase—contracted growth with substantial upside from new customer acquisition. Broadcom provides participation in the margin-expansion phase—proven technology gaining share within established customers’ expanding AI budgets.

Historical precedent supports the thesis that best stocks to invest in during transformative technology cycles include both enablers (hardware/infrastructure) and beneficiaries (specialized services). Netflix’s 47,000%+ return from a December 2004 Stock Advisor recommendation and Nvidia’s 109,000%+ return from an April 2005 recommendation illustrate how identifying category leaders during inflection points can generate outsized wealth creation for patient capital.

Both companies possess the financial stability, contracted revenue, and market positioning to sustain momentum through 2026 and beyond. The S&P 500’s 192% total return over an equivalent historical period pales against Stock Advisor’s 930% average return—a performance differential underscoring the value of concentrated positioning in genuine market-shifting opportunities.

For investors willing to concentrate capital where macroeconomic tailwinds and company-specific execution align, these infrastructure plays represent among the most defensible best stocks to invest in during this AI-driven market cycle.