Five Compelling Stock Picks to Invest in During Early 2026

As we progress through early 2026, a clearer investment landscape is emerging for those watching the markets carefully. While skepticism lingers about artificial intelligence spending, recent corporate results and forward guidance are telling a different story—one where the best stocks to invest in right now may be hiding in plain sight, undervalued by a market still adjusting to this new reality. The following analysis identifies several opportunities worth considering for investors looking to position themselves ahead of broader market recognition.

The AI Hardware Momentum: Nvidia and TSMC Lead the Charge

The case for artificial intelligence adoption has moved beyond speculation. Taiwan Semiconductor Manufacturing’s fourth-quarter results delivered compelling evidence, with revenue climbing 26% year-over-year and management guiding for approximately 30% revenue growth throughout 2026. More tellingly, the company committed $52 billion to $56 billion in capital expenditures for production capacity expansion—a decisive signal that chip demand in the AI space is substantial and durable.

Nvidia remains the dominant force in AI computing infrastructure. Its graphics processing units continue advancing the boundaries of computational possibility, with demand expected to remain robust through 2030. Industry projections suggest global annual data center spending could reach $3 trillion to $4 trillion within that timeframe. For investors seeking best stocks to invest in during this structural shift, Nvidia’s position as the foundational technology provider offers compelling long-term potential, despite recent market enthusiasm around the sector.

Capturing the Cloud GPU Infrastructure Play With Nebius

Beyond the chip manufacturers themselves, infrastructure plays merit attention. Nebius Group operates a specialized model, deploying Nvidia GPUs equipped with TSMC chips for client rental—similar to cloud computing’s proven business model but hyper-focused on AI training compute demands. The growth trajectory is remarkable: management projects expanding from a $551 million annual run rate in Q3 to a $7 billion to $9 billion run rate by year-end. This represents a pure-play opportunity on AI infrastructure buildout, appealing to investors seeking exposure to this niche.

Non-AI Recoveries: Where Overlooked Opportunities Lie

Not all compelling investment opportunities center on artificial intelligence. The Trade Desk experienced a difficult 2025, declining nearly 70%, yet consensus analyst expectations remain constructive: 18% revenue growth projected for 2026 and 16% the following year. Ad technology demand continues expanding, and the company maintains structural positioning to capture that growth. Current valuation reflects market pessimism, with shares trading at just 17.5 times forward earnings—a meaningful discount for a business with sustained growth prospects.

MercadoLibre offers a distinctly different angle: regional diversification combined with demonstrated operational excellence. The Latin American e-commerce and fintech leader has retreated approximately 20%, creating an opening for investors. The company’s transaction reach across the region remains underpenetrated, with significant expansion potential as Latin American commerce continues digitizing. This positions MercadoLibre among the best stocks to invest in for those seeking geographic diversification alongside growth exposure.

Why Now Matters for These Selections

The timing element deserves emphasis. Market sentiment often overshoots in both directions—2025 saw enthusiasm fade toward non-AI narratives, while skepticism about AI spending persists despite corporate actions suggesting otherwise. These dynamics create windows of opportunity for disciplined investors who can look beyond sentiment cycles. The stocks identified here combine durable growth catalysts with valuation inefficiencies that may not persist indefinitely as broader market recognition catches up.

Historical perspective reinforces this view. When Motley Fool identified Netflix in December 2004, a $1,000 investment would have appreciated to $448,476 by January 2026. Similarly, Nvidia recognized in April 2005 would have generated $1,180,126 from a $1,000 stake—illustrating the substantial returns available when investors identify quality businesses ahead of consensus. These examples underscore why thoughtful stock selection during periods of market dislocation matters.

The stocks highlighted here represent a mix of structural growth tailwinds and valuation opportunities. Whether pursuing pure-play AI infrastructure exposure through Nvidia and TSMC, infrastructure growth through Nebius, or recovery-oriented and diversification plays through The Trade Desk and MercadoLibre, investors have multiple avenues to construct portfolios of the best stocks to invest in for 2026. The window to acquire these positions at current valuations may not remain open indefinitely as market recognition evolves.