As 2026 approaches, investors are increasingly looking for promising avenues to allocate their capital. While the idea of starting with a substantial sum like $50,000 might seem daunting, any investment amount can be worthwhile, especially with the accessibility of fractional shares through many brokerage accounts. Here are three stocks that stand out as excellent starting positions, with strong potential for market-beating returns in the coming year.
Taiwan Semiconductor
Taiwan Semiconductor is at the forefront of the burgeoning artificial intelligence sector, a space where companies are continually investing billions into AI data centers. This trend shows no signs of slowing down, making Taiwan Semiconductor a prime candidate for investors keen to capitalize on the industry’s evolution. The company is a key supplier of chips for various computing providers, allowing investors to gain exposure to the tech landscape without needing to pick individual winners.
Taiwan Semiconductor is making strides with its innovative technology, particularly with its new 2nm chips, which are now entering production. These chips are designed to be more energy-efficient, consuming 25% to 30% less power than their previous 3nm counterparts when operating at equivalent speeds. Given the increasing emphasis on energy efficiency amid the AI boom, this development is particularly timely. With data center construction expected to accelerate into 2026, Taiwan Semiconductor is well-positioned to benefit significantly.
Alphabet
Following a challenging start in 2025, Alphabet has emerged as a strong candidate for investment in 2026. At the beginning of the year, there were doubts surrounding its market dominance, particularly with concerns about its Google Search engine and lagging in generative AI technology. However, these uncertainties were clarified positively over the year, contributing to a remarkable rise of more than 60% in Alphabet’s stock value.
The company now seems poised for continued success, benefiting from a resurgence in advertising revenue. Reports indicate a 15% year-over-year increase in Google Search revenue for Q3, while its cloud computing division saw a remarkable 34% revenue jump. This momentum allows Alphabet to fully commit to its ambitions in the AI space, exemplified by its advancements with the Gemini model. Given the favorable trends and historical performance, Alphabet appears to be a solid pick for the upcoming year.
Amazon
In contrast to Alphabet’s stellar performance, Amazon’s stock has seen more subdued growth, rising only about 6% this year. Nevertheless, the company’s fundamentals give hope for a significant rebound in 2026. Recent reports indicated a healthy revenue increase of 13% in Q3, and the highlight is the positive trajectory of its cloud computing segment, Amazon Web Services (AWS). After a prolonged period of slow growth, AWS showed signs of accelerating growth for the first time in years, which is crucial as it accounts for a substantial 66% of Amazon’s operating profit despite contributing only 18% to overall revenue.
The recent valuation adjustment also plays a key role in Amazon’s appeal. Once considered overvalued, it is now trading at a more reasonable level based on operating profits, presenting a compelling opportunity for investors. With AWS showing promising growth and the overall business landscape improving, Amazon is expected to make a significant comeback in 2026, making it a worthwhile investment at this juncture.
As 2026 approaches, these three companies—Taiwan Semiconductor, Alphabet, and Amazon—offer promising opportunities for investors looking to position themselves effectively in the market. With each company innovating and adapting to evolving trends, they are well-placed to deliver substantial returns in the year ahead.
