Top AI Stocks to Buy in 2026 and One to Avoid
The world of artificial intelligence (AI) is generating significant interest among investors. As the technology continues to evolve, various companies are emerging as potential leaders in the market. Here, we examine the top AI stocks to consider buying in 2026, as well as one stock that investors should approach with caution.
Promising AI Stocks to Buy in 2026
Meta Platforms (META)
Meta Platforms is a significant player in the AI space, making substantial investments to enhance its technology and infrastructure. The company’s financial performance has benefited from AI-driven algorithms, which have improved user engagement across its platforms, including Instagram. This engagement translates into more effective advertising, appealing to businesses seeking targeted outreach.
- Current Price: $620.25
- Market Capitalization: $1.6 trillion
- Gross Margin: 82%
- Dividend Yield: 0.34%
Despite concerns about the costs of AI investments, Meta’s large user base of over 3.5 billion daily active users presents diverse monetization opportunities. The potential for future growth through AI could solidify Meta’s position as a strong investment choice.
Apple (AAPL)
Apple is another tech giant that is leveraging AI technologies, particularly through its latest iPhone, the iPhone 17. The device includes various AI-enhanced features, contributing to a surge in sales and revenue growth. Apple anticipates continued double-digit growth in its upcoming financial quarter, a notable achievement for the company.
- Current Price: $255.81
- Market Capitalization: $3.8 trillion
- Gross Margin: 46.91%
- Dividend Yield: 0.40%
With more than 2 billion devices in circulation, Apple has vast monetization potential through its services segment. The company’s ongoing investment in AI will enhance user experience and drive further growth.
AI Stock to Avoid in 2026
Recursion Pharmaceuticals (RXRX)
Recursion Pharmaceuticals has an ambitious goal of transforming drug development using AI. The company employs an AI-powered operating system to conduct virtual experiments, potentially expediting clinical trials and reducing costs. However, Recursion currently lacks market-ready products and has yet to demonstrate the effectiveness of its approach.
- Current Price: $4.67
- Market Capitalization: $2.4 billion
- Gross Margin: -16039.74%
With major pharmaceutical companies also turning to AI for drug discovery, Recursion faces significant competition. Its high-risk profile may deter investors seeking more stable options.
Conclusion
As the AI sector expands, investors have exciting opportunities ahead. While Meta Platforms and Apple show strong potential for growth, Recursion Pharmaceuticals presents a higher level of risk. Investors should carefully analyze these stocks as they strategize for 2026.
