From Nvidia to Bitcoin: The 10 Best Stocks to Buy in 2026 — And Why

The global economy is being reshaped by artificial intelligence, rearmament, weight-loss drugs, and the institutionalisation of crypto. Here are ten investments — across seven industries — that we believe offer the strongest risk-adjusted returns for the year ahead.

The investment landscape in 2026 is defined by a handful of structural forces that are unlikely to reverse any time soon. Artificial intelligence is moving from hype to infrastructure. European defence spending is entering a generational upcycle. The GLP-1 weight-loss revolution is expanding from injectable drugs to pills. And Bitcoin, after a brutal late-2025 correction, is being treated less like a speculative punt and more like a genuine portfolio asset by institutional allocators.

At the same time, there are serious risks. Over $700 billion in combined capex spending has been guided by just five hyperscalers for 2026, and investors are increasingly asking whether the AI buildout will generate returns commensurate with the investment. Trade policy remains unpredictable. Interest rate paths are diverging across major economies. And equity valuations in the United States remain historically stretched, with the S&P 500 trading at a price-to-earnings ratio of roughly 28.

Against that backdrop, we have selected ten investments — spanning semiconductors, defence, big tech, healthcare, aerospace, and crypto — that we believe combine strong fundamentals, structural tailwinds, and defensible competitive positions. Not all are cheap. But all, in our view, are positioned on the right side of the forces reshaping the global economy.

1. Nvidia (NVDA)

Sector: Semiconductors / Artificial Intelligence Why now: Dominant market share in the infrastructure layer of AI

Every serious list of stocks for 2026 begins here, and for good reason. Nvidia controls approximately 92 percent of the GPU market for AI workloads. Its most recent quarterly revenue came in at $57 billion, with nearly 90 percent of that generated by its data centre business. The company has gone from being a graphics chip maker to the essential supplier of the hardware underpinning the most significant technology shift since the internet.

The bull case is straightforward. Cloud service providers — Microsoft, Google, Amazon, Meta, and Oracle — have collectively guided to over $700 billion in capital expenditure for 2026, a $290 billion increase from 2025. The vast majority of that spending flows through Nvidia’s ecosystem. Its Blackwell architecture is shipping at scale, and customer demand continues to outstrip supply.

The bear case is equally real. At some point, investors will question whether these hyperscalers can generate adequate returns on their AI investments. Nvidia’s stock has risen more than 1,100 percent over five years, and any deceleration in orders would hit the share price hard. Competition from AMD and custom silicon (Google’s TPUs, Amazon’s Trainium) is real, if not yet material.

But for 2026, the infrastructure buildout is not slowing down. Nvidia predicted last year that AI infrastructure spending would reach into the trillions by the end of the decade. For investors with a tolerance for volatility, the company remains the single best proxy for the AI investment cycle.

2. Taiwan Semiconductor Manufacturing (TSM)

Sector: Semiconductors / Manufacturing Why now: Irreplaceable position in advanced chip fabrication

If Nvidia designs the chips that power AI, TSMC makes them. The Taiwanese foundry manufactures approximately 70 percent of the world’s processors and an estimated 90 percent of all advanced chips — those made using 7-nanometer process nodes and below. That concentration of capability is both its greatest strength and its most significant geopolitical risk.

Advanced chips accounted for nearly 74 percent of TSMC’s wafer revenues in 2025. The company commenced mass production of 2-nanometer chips at both its Hsinchu and Kaohsiung sites in Taiwan in the fourth quarter of 2025, and is now preparing to scale its cutting-edge A16 process node for high-performance computing workloads.

TSMC is also aggressively ramping its chip-on-wafer-on-substrate packaging capacity — the critical technology that pairs logic chips with high-bandwidth memory in AI accelerators. Industry estimates suggest the company may boost monthly CoWoS capacity from 75,000–80,000 wafers in late 2025 to as high as 120,000–130,000 by the end of 2026.

Morningstar recently assessed that TSMC is positioned to stay ahead of its competitors for decades. Its share price has risen 262 percent over the past three years, but the forward earnings multiple remains reasonable relative to its growth trajectory and the effective monopoly it holds in advanced fabrication. For anyone investing in the AI theme, TSMC is the foundational layer.

3. Rheinmetall (RHM)

Sector: European Defence Why now: Structural rearmament cycle with multi-decade visibility

European defence is no longer a cyclical trade — it is a structural transformation. NATO members are not debating whether to hit the 2 percent of GDP spending guideline; they have already surpassed it. Several frontline and northern European countries are planning sustained spending above 3 percent, and Poland’s defence expenditure exceeded 4.5 percent of GDP in 2025.

Rheinmetall, the German arms manufacturer, sits at the centre of this shift. The company is the primary beneficiary of Germany’s decision to raise its defence budget from €86 billion in 2025 to €108.2 billion in 2026, with a target of €225 billion by 2029. Berlin activated a €100 billion special defence fund and, in 2025, approved a €500 billion multi-year package covering defence, infrastructure, and industrial capacity.

Goldman Sachs has a €2,200 price target on Rheinmetall and maintains a buy rating. Barclays and Deutsche Bank see the stock reaching €2,050, while Berenberg projects €2,330. The company benefits from sustained demand for ammunition, armoured vehicles, and artillery systems as European countries replenish stockpiles depleted by the Ukraine conflict.

Critically, analysts argue that even a peace deal in Ukraine would not materially reduce European defence spending. As Goldman strategist Sam Burgess put it, Russia would use any pause to reconstitute its forces, and NATO must prepare accordingly. This is not a war trade. It is an industrialisation trade — and Rheinmetall has the operating leverage to capture it.

4. Meta Platforms (META)

Sector: Digital Advertising / Artificial Intelligence Why now: Undervalued relative to earnings power despite massive AI spending

Meta reported $201 billion in revenue for 2025, with operating margins of 41 percent from its Family of Apps segment — Facebook, Instagram, WhatsApp, and Messenger. The company’s 3.58 billion daily active users generate an advertising machine that produces over $100 billion in annual operating profit. Free cash flow hit $43.6 billion last year.

Morningstar maintains an $850 fair value estimate for Meta’s wide-moat business, noting that shares remain undervalued despite recent gains. The firm expects 2026 sales growth of 25 percent, driven by AI-powered improvements in ad targeting, engagement, and content recommendation. Ad impressions were up 18 percent in the most recent quarter, with video engagement particularly strong.

The concern, obviously, is spending. Meta has guided to $125 billion in capital expenditure and $162 billion in operating expenses for 2026, the vast majority directed at AI infrastructure. Reality Labs — the metaverse division — has now accumulated roughly $80 billion in cumulative losses since late 2020, with $19.2 billion lost in 2025 alone.

The investment thesis requires accepting that Meta’s core advertising business is so profitable that it can absorb these losses while still delivering superior returns. The evidence so far supports that view. Threads has already reached 320 million monthly users. Instagram Reels continues to gain share against TikTok. And every improvement in Meta’s AI capabilities feeds directly back into the ad engine that funds everything else.

5. Novo Nordisk (NVO)

Sector: Healthcare / GLP-1 Pharmaceuticals Why now: Deeply discounted after a 66 percent drawdown, with a first-mover advantage in oral weight-loss drugs

Novo Nordisk has been punished by the market. Its share price has fallen 66 percent from its mid-2024 peak, driven by concerns about competition from Eli Lilly, pricing pressure from a US government agreement, and guidance that 2026 financials will be weak. The stock now trades at a price-to-earnings ratio of just 13, compared to Eli Lilly’s 50.

That valuation gap looks excessive. In early 2026, Novo Nordisk received FDA approval for the first oral GLP-1 weight-loss drug — a significant milestone that could dramatically expand the addressable market by reaching patients who refuse injectable treatments. Clinical data suggests Novo’s oral drug may be slightly more effective than Eli Lilly’s competing pill, with a potentially better safety profile.

Morningstar rates Novo Nordisk at 4 stars, trading at a 21 percent discount to fair value. The dividend yield of 3.9 percent is well covered by a 40 percent payout ratio. The company expects improved performance in 2027 as the oral drug gains traction.

For investors willing to take a contrarian position in healthcare, Novo Nordisk at 13 times earnings — in a market where the GLP-1 opportunity is still in its early stages — represents one of the most compelling value opportunities of 2026. The weight-loss drug market is projected to reach $150 billion annually by 2030. Novo Nordisk will remain one of two companies that dominate it.

6. Amazon (AMZN)

Sector: Cloud Computing / AI / E-commerce Why now: Trading at a meaningful discount to fair value, with AWS positioned as the leading AI cloud platform

Amazon reported strong fourth-quarter results across all segments, yet the stock fell 12 percent after the company guided to $200 billion in capital expenditure for 2026. Investors reacted to the headline number, not the underlying business — which continues to compound at an extraordinary rate.

Morningstar has a $260 fair value estimate on Amazon, putting the stock at a 19 percent discount — a 4-star rating. AWS remains the world’s largest cloud infrastructure provider, and its AI capabilities are attracting enterprise customers at an accelerating rate. Amazon’s custom Trainium chips are gaining adoption, reducing the company’s dependence on Nvidia while improving margins in its cloud business.

The advertising division — now a $60 billion-plus annual run rate — is one of the fastest-growing segments of the business. Retail margins continue to improve as the company optimises its logistics network and expands same-day delivery. Prime membership remains one of the stickiest subscription products in the world.

The capex number is large, but so is the opportunity. Amazon is building the infrastructure layer for enterprise AI adoption — and unlike pure-play AI companies, it has three separate profit engines (cloud, advertising, and retail) to fund the investment.

7. Bitcoin (BTC)

Sector: Digital Assets / Cryptocurrency Why now: Institutional adoption is structural, supply is constrained, and the asset is trading well below most analyst targets

Bitcoin enters 2026 in an unusual position. It was the worst-performing major asset in late 2025, losing more than 30 percent in six weeks as over $1.2 trillion in crypto market value evaporated. The correction was driven not by retail panic but by mechanical deleveraging — $19 billion in liquidations in a single day — and institutional de-risking as macro conditions tightened.

Yet the structural case for Bitcoin has never been stronger. Over $50 billion flowed into spot Bitcoin ETFs in the past year, and most of that capital has not left. The 20 millionth Bitcoin will be mined in March 2026, further constraining supply. Institutional demand — from ETF allocators, corporate treasuries, and sovereign wealth funds — now exceeds new annual Bitcoin supply.

Price forecasts for 2026 range widely. Standard Chartered targets $150,000. Bitwise and Bernstein project $200,000. JPMorgan and Citibank sit at $170,000 and $133,000 respectively. CoinShares expects a range of $120,000 to $170,000, with stronger price action in the second half of the year as rate cuts and improved liquidity conditions take hold.

Bitcoin is not a stock, and it should not be treated as one. It is a volatile, uncorrelated asset that has been the top-performing investment in ten of the past thirteen years. A modest allocation — Bitwise’s CIO suggests treating it like a portfolio seasoning rather than a main course — can improve risk-adjusted returns over time. At current prices, the risk-reward skews favourably for investors with a multi-year horizon.

8. Broadcom (AVGO)

Sector: AI Infrastructure / Semiconductors Why now: Converting AI momentum into real earnings, with a differentiated position in custom silicon and networking

Broadcom occupies a different niche in the AI ecosystem to Nvidia. While Nvidia dominates general-purpose GPUs, Broadcom focuses on custom AI accelerators (designed for specific hyperscaler workloads) and the networking infrastructure that connects AI clusters at scale. Both are critical — and both are seeing explosive demand.

Revenue grew to over $18 billion in the most recent quarter, a 28 percent increase year-on-year. For fiscal 2025, adjusted EBITDA and free cash flow grew 35 percent and 39 percent respectively. The company’s forward price-to-earnings ratio of around 33 and price-to-sales ratio of 25 are elevated but justifiable given the growth trajectory.

The stock is well off its 52-week high and down nearly 4 percent year-to-date, presenting an entry point for buy-and-hold investors. Broadcom’s custom silicon business — designing bespoke AI chips for Google, Meta, and other hyperscalers — is a high-margin, sticky revenue stream that competitors cannot easily replicate. Its VMware acquisition is also beginning to contribute meaningful recurring revenue.

For investors who want AI exposure beyond Nvidia, Broadcom offers a differentiated, infrastructure-focused play with strong profitability and growing cash generation.

9. Rolls-Royce Holdings (RR.L)

Sector: Aerospace / Defence / Energy Why now: Turnaround complete, with defence upside and commercial aviation recovery compounding

Rolls-Royce has been one of the most remarkable corporate turnarounds in recent European history. Under CEO Tuck Holroyd, who took over from Tufan Erginbilgic in late 2025 after Erginbilgic delivered the initial restructuring, the company has transformed from a business burning cash to one generating substantial free cash flow.

The investment thesis rests on three pillars. First, the commercial aviation recovery is structural — Rolls-Royce earns the majority of its revenue from long-term service agreements tied to engine flying hours, and international wide-body traffic has returned to pre-pandemic levels. Second, the defence division benefits directly from European rearmament spending, with military engine programmes and submarine propulsion systems seeing increased demand. Third, the company’s small modular reactor programme positions it as a potential beneficiary of the nuclear energy renaissance driven by AI data centre power demands.

Rolls-Royce stock has surged approximately 400 percent from its 2022 lows, but analysts argue the earnings trajectory still supports further upside. The company’s exposure to both the commercial aviation cycle and the defence spending cycle gives it a diversification advantage that pure-play defence stocks lack.

10. Alphabet (GOOGL)

Sector: Search / Cloud / Artificial Intelligence Why now: Trading at a discount to fair value despite leading positions in search, cloud, and AI research

Alphabet is the forgotten member of the Magnificent Seven. While Meta and Nvidia have attracted most of the AI enthusiasm, Alphabet has been quietly building one of the deepest AI capabilities in the industry — from its Gemini large language models to its TPU custom chips to DeepMind’s research breakthroughs.

Google Cloud revenue grew 35 percent in the most recent quarter and is now profitable on an operating basis. Search revenue remains resilient despite fears that AI chatbots would erode Google’s dominance — in fact, AI-powered search features have increased engagement and ad click-through rates. YouTube advertising continues to grow as connected TV viewing expands globally.

Morningstar rates Alphabet as undervalued. The stock finished a recent week down after mixed earnings reactions, but the underlying business continues to compound. The company guided to $180 billion in capital expenditure — a staggering figure, but one that reflects the scale of its ambition in AI infrastructure, cloud computing, and autonomous driving (Waymo).

For investors who believe AI will enhance rather than destroy Google’s search monopoly, Alphabet at current valuations represents an asymmetric opportunity. The company generates enough cash to fund its AI ambitions while maintaining a fortress balance sheet with over $100 billion in cash and equivalents.

The Portfolio Logic

These ten investments are not a balanced portfolio. They are deliberately concentrated in the themes we believe will define returns over the next twelve to thirty-six months: the AI infrastructure buildout, European rearmament, the GLP-1 healthcare revolution, and the institutionalisation of digital assets.

A more conservative allocation might weight towards the value plays — Novo Nordisk at 13 times earnings, Amazon at a 19 percent discount to fair value, Alphabet trading below Morningstar’s estimate — while treating the higher-multiple names (Nvidia, Broadcom) and Bitcoin as growth and diversification positions.

The common thread is structural demand. Every company on this list is positioned on the supply side of a multi-year spending cycle that is being driven by forces — geopolitical instability, AI adoption, demographic health trends, monetary debasement — that are unlikely to reverse in the near term.

That does not make any of them risk-free. Valuations can compress. Trade wars can escalate. AI capex can disappoint. But in a world defined by uncertainty, we believe these ten investments offer the strongest combination of competitive positioning, earnings visibility, and exposure to the forces reshaping the global economy.

This article was produced by European Business Magazine. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual readers. The value of investments and the income from them can go down as well as up, and investors may not get back the amount originally invested.

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