Two Key Stocks to Invest in as AI Demand Accelerates Through 2026

Artificial intelligence is reshaping the investment landscape, and investors seeking substantial long-term returns are increasingly turning to stocks to invest that directly benefit from this transformation. Rather than betting on multiple companies, some investors concentrate capital in carefully selected opportunities where the growth potential justifies the risk. Two companies stand out as particularly compelling candidates: one leads the custom semiconductor revolution, while the other controls critical energy infrastructure powering AI operations globally.

Broadcom’s Custom Chips Position It as a Leading Stock to Invest

Broadcom (NASDAQ: AVGO) dominates the custom AI chip market, addressing a specific gap that general-purpose processors cannot fill. While competitors like Nvidia design chips for broad applications, Broadcom engineers highly specialized solutions tailored to each tech giant’s unique architecture requirements. This differentiation has proven remarkably valuable.

The company’s fiscal 2025 Q4 results demonstrate the market’s confidence. Overall sales surged 28% year-over-year, but the standout performance came from the AI segment, which exploded 74% year-over-year. Even more impressive, Broadcom guided that AI revenue will more than double in fiscal 2026’s first quarter. The company simultaneously expanded profitability dramatically, nearly doubling net income year-over-year while approaching 50% net profit margins—a testament to the efficiency of custom chip production at scale.

What makes Broadcom especially noteworthy as a stocks to invest choice is its sustained market dominance. The company has generated nearly 700% total returns over five years, and momentum indicators suggest 2026 could extend this trajectory significantly. Custom AI chips form the bedrock of modern artificial intelligence infrastructure, and Broadcom’s technology ensures it captures a disproportionate share of this multi-billion dollar opportunity.

Iren: The Energy-Constrained Play in AI Data Center Expansion

If Broadcom represents the innovation supply side of AI infrastructure, Iren (NASDAQ: IREN) controls the energy supply that makes data centers viable. Iren operates as an AI data center provider managing a 3-gigawatt pipeline—a critical advantage in an industry where power availability increasingly determines competitive positioning.

Energy has emerged as the primary bottleneck limiting AI expansion. Most data centers struggle to secure sufficient grid capacity for next-generation workloads. Iren addressed this constraint directly by securing a five-year contract worth $9.7 billion with Microsoft for 200 megawatts of dedicated power. This single deal generates $1.94 billion in annual recurring revenue alone.

The trajectory accelerates further in April 2026, when Iren’s Sweetwater 1 facility adds 1.4 gigawatts online. That single expansion theoretically supports seven additional contracts matching the Microsoft agreement in scale. The company is targeting $3.4 billion in annual recurring revenue by year-end 2026, leveraging only 16% of its secured grid-connected power. With a multi-gigawatt development pipeline beyond its existing 3 gigawatts, Iren possesses the infrastructure to dramatically exceed current guidance.

What investors might overlook is Iren’s historical background. The company previously generated revenue primarily from cryptocurrency mining, then successfully pivoted infrastructure and focus toward AI cloud services as demand shifted. This operational flexibility demonstrates management’s ability to capitalize on emerging opportunities—making Iren an intriguing stocks to invest for growth-focused portfolios.

Why These Two Stocks to Invest Complement the AI Megatrend

The compelling case for these stocks to invest together reflects their complementary roles in AI infrastructure development. Broadcom solves the computation problem through specialized chip architecture, while Iren solves the power problem through secured energy contracts and expanding capacity. Neither company’s growth can reach full potential without the other’s success.

Historical precedent supports the risk-reward profile. When Motley Fool Stock Advisor identified Netflix on December 17, 2004, a $1,000 investment would have grown to $470,587 by January 2026. Similarly, when the team recommended Nvidia on April 15, 2005, that same $1,000 would have appreciated to $1,091,605. These examples illustrate how concentrated positions in transformational technology trends can produce extraordinary returns.

For investors seeking stocks to invest that capture the AI boom’s multi-year tailwinds, Broadcom’s proven market dominance and Iren’s emerging competitive advantages merit serious consideration. Both companies control essential elements of infrastructure that will determine AI’s practical deployment speed and scale through 2026 and beyond.