3 AI Stocks That Could Turn $1,000 Into a Fortune by 2026

The AI gold rush isn't slowing down—it's accelerating. Forget picking winners; these three stocks are already printing money.

Nvidia: The Pickaxe Play

While crypto miners bought GPUs, AI labs are emptying Nvidia's warehouses. Their H100 chips sell faster than Taylor Swift tickets.

Palantir: The CIA's Favorite AI

From tracking terrorists to optimizing supply chains, Gotham's algorithms now power Fortune 500 earnings beats. Government contracts? Just icing.

TSMC: The Silent Enabler

Every AI chip runs on TSMC silicon. As rivals struggle with 3nm yields, they're quietly charging Apple-like margins for shovels.

Bonus truth bomb: Wall Street's 'AI experts' still can't explain how large language models work—but they'll sure as hell charge you 2% to manage your portfolio.

Image source: Getty Images.

Taiwan Semiconductor

The complete dominance of Taiwan Semiconductor Manufacturing (TSMC) in advanced chip manufacturing, accounting for over 90% of AI chip manufacturing, has positioned it as the backbone of the global AI infrastructure. The company also accounted for 67.6% of the pure-play foundry market in the first quarter of 2025, significantly higher than the 7.7% share of the second-largest player, Samsung Foundry.

TSMC manufactures semiconductor chips for virtually every major technology company, including,,, and. In fact, according to data from Boston Consulting Group, cited by, the U.S. purchases 92% of its advanced AI chips from the company.

TSMC's prowess in advanced process nodes (chip manufacturing technology) has created a competitive advantage. The company's advanced process node technology enables it to mass-produce cutting-edge, smaller, and more powerful chips for AI use cases. Additionally, the company has announced plans to invest $165 billion in advanced semiconductor manufacturing in the U.S. This move is expected to help reduce over-reliance and geographic risks, as most of its manufacturing is currently concentrated in Taiwan.

TSMC has also reported strong financial results for the second quarter. Revenue increased 44% year over year to $30 billion, mainly driven by strong demand for its 3 nanometer (nm) and 5nm node semiconductor chips in AI and high-performance computing applications. The company's non-GAAP earnings per share (EPS) also increased by 67% to $1.48. Management now expects the company's 2025 revenue to increase by 30%.

TSMC currently trades at a reasonable 23.5 times forward earnings. That looks particularly attractive considering that management guided for AI-related revenues to increase at a mid-40% compound annual growth rate (CAGR) over the next five years at the start of 2025. Hence, investors should consider buying a small stake in this high-growth stock now.

ASML Holding

ASML is one of the key technology companies driving the ongoing AI revolution. The company develops lithography equipment for semiconductor manufacturers, including TSMC,, and Samsung Foundry, which enables them to manufacture the advanced semiconductors that are essential for high-performance computing and AI applications.

ASML's business spans two segments: Net System Sales, including Extreme Ultraviolet (EUV) machines and DEEP Ultraviolet (DUV) machines, and Installed Base Management, which involves services offered for the maintenance, upgrade, and security of ASML's installed systems.

The company's EUV platform is the preferred technology used worldwide to manufacture advanced chips (7nm and below). The company holds a NEAR monopoly in EUV lithography and is the sole manufacturer of EUV systems globally. EUV systems use extreme ultraviolet light with a wavelength of just 13.5 nanometers, combined with mirrors, to print much smaller patterns required for advanced AI chips.

Undoubtedly, EUV technology is more expensive for clients, but it has resulted in improved precision and fewer production steps in chip manufacturing compared to older methods.

While EUV receives the most attention, the company's deep UV (DUV) systems remain a significant part of ASML's sales. DUV systems use deep ultraviolet light at wavelengths such as 157 nanometers, 193 nanometers, and 248 nanometers through lenses to print patterns on chips.

ASML reported strong Q2 financial results. Revenue totaled 7.69 billion euros ($8.9 billion), of which 2.3 billion euros ($2.66 billion) were EUV sales. While net system sales totaled 5.5 billion euros ($6.37 billion), installed base services generated 2.1 billion euros ($2.43 billion) in revenue. ASML is also profitable, generating 2.3 billion euros ($2.66 billion) in the second quarter.

Management now expects total net sales to increase by approximately 15%, with gross margin of 52% in 2025. This guidance seems achievable, considering the company had a 33-billion-euro backlog at the end of Q2. ASML is also committed to returning capital to shareholders, as evident from its aggressive share repurchases worth 5.8 billion euros in the first half of 2025.

Despite the technological moat and robust financials, ASML trades at a reasonable 28.7 times forward earnings. That looks particularly attractive for a company whose earnings are forecast to increase by 24.4% in 2025.

ASML has pulled back almost 34% from its all-time high in early July 2025, due to growth uncertainties for 2026 stemming from macroeconomic and geopolitical uncertainty. However, considering the company's monopoly in EUV technology and the accelerating AI-driven demand for advanced chips, investors should view this dip as an excellent entry point for buying shares.