The technology sector is where you want to find great growth stocks in 2026. Cloud service providers continue to see insatiable demand for AI services. This has created a strong demand environment for technology companies across the supply chain of the AI infrastructure market.
Here are two AI stocks that could deliver wealth-building returns over the next decade.
Where to invest $1,000 now? Our team of analysts has revealed what they believe. Best 10 stocks Buy now. Continued “
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1. Advanced microdevices
advanced micro device (NASDAQ: AMD) is one of the top chip suppliers for the consumer PC market and data centers. Over the past two years, the company’s revenue has grown more than 20% annually, supporting investors’ appreciation of the stock. However, as AMD invests more in AI infrastructure opportunities, management believes its growth will accelerate significantly.
Wall Street analysts expect AMD to report $34 billion in revenue in 2025. AMD’s long-term outlook projects annual revenue growth of 35% on a compounded basis over the next three to five years.
AMD enters 2026 with strong momentum in its largest business area. Data center revenue continued to grow strongly, reaching a record $4.3 billion in the third quarter. AMD expects its data center business to grow revenue at an annual rate of more than 60% over the next five years.
One of AMD’s key differentiators in the chip industry is its diverse portfolio, which includes central processing units (CPUs). The company’s Ryzen processors continue to gain market share intel In consumer markets, client segment revenue reached a record $2.8 billion in the third quarter, up 46% year-over-year.
AMD’s gaming business is also heating up again, bringing in $1.3 billion in revenue last quarter, nearly triple the same period last year. We expect client and gaming growth to be slower over the next few years, but still a solid contributor to sales. Management’s long-term forecast is that the Ryzen processor lineup will continue to increase market share in the PC market, with revenue in these segments expected to grow at more than 10% annually.
Another big opportunity lies in AMD’s portfolio of adaptive computing chips, including field programmable gate arrays (FPGAs) and other specialty products. This gives AMD a unique advantage over competitors when it comes to delivering AI solutions that run remotely on edge computing devices.
In summary, AMD benefits from multiple levers for chip demand. The company’s overall business has ample opportunity to deliver superior returns to investors. Analysts expect the company’s profits to grow at an annual rate of 45% over the next few years.
2.Microsoft
microsoft (NASDAQ: MSFT) has a profitable ecosystem of productivity tools, cloud services, and other professional services that serve a large user base. We use many services, such as Microsoft 365, to serve millions, if not billions, of users and generate steady revenue through subscriptions.
Subscription-based business models generate significant revenue and encourage investment in innovation. Microsoft spent $69 billion on capital expenditures last year, all of which was internally funded from $147 billion in operating income. These investments have enabled the development of world-class AI chips, systems, and cloud software. It’s no surprise that Microsoft Cloud revenue increased 26% year-over-year to $46 billion in the recently reported quarter.
The company’s large data centers power the cloud services behind all its products and help drive significant growth across the business. Microsoft 365, which includes Office software, has more than 400 million paid subscribers, and Copilot AI Assistant has more than 100 million monthly active users.
AI remains a key driver of Microsoft Azure cloud business. Azure revenue increased 40% year-over-year sequentially. That’s an impressive growth rate for a company that generated $75 billion in revenue in fiscal year 2025 (ending in June).
Microsoft is actively investing in its AI infrastructure while still reporting healthy profitability. Last quarter, operating income increased 24% year-over-year, outpacing top-line growth of 18%. Microsoft’s huge user installed base and technology infrastructure will make it a powerful player in the AI-driven economy. Analysts expect the company’s profits to grow at an annual rate of 13%.
Should you buy Advanced Micro Devices stock now?
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John Ballard works at Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Microsoft. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
