With May here, it’s time to start trying to predict what stocks are going to be strong performers over the rest of the year. Although I may sound like a broken record, it’s safe to say that 2026 will be another year marked by heavy spending on artificial intelligence (AI). This positions a handful of companies to be extreme beneficiaries, and I want to be invested in them to take full advantage of the major data center build-out that is going on.
I’m focused on five tech stocks that look like excellent buys this May and should continue to be strong investments for years to come.
Image source: Getty Images.
Alphabet and Amazon
Alphabet (GOOG +0.34%) (GOOGL +0.20%) and Amazon (AMZN +1.25%) are two of my top choices, and the reason is their cloud computing segments. At first, it may seem like these two are odd inclusions because both are in the midst of pouring hundreds of billions of dollars a year into data center capital expenditures. While that’s a fair point, Amazon CEO Andy Jassy pointed out in his annual shareholder letter that the economics of the cloud computing business require spending more when demand is high. Furthermore, these companies aren’t spending blindly; they have real customer commitments to lease this computing power, and that will translate to monster revenue growth down the road.
Today’s Change
(1.25%) $3.30
Current Price
$268.36
Key Data Points
Market Cap
$2.9T
Day’s Range
$262.74 – $273.31
52wk Range
$183.85 – $273.88
Volume
2.5M
Avg Vol
53M
Gross Margin
50.60%
As long as AI demand stays high, the spending these two are doing will result in strong revenue growth. This makes me bullish on both of their futures, especially since their cloud computing segments are their fastest-growing business units.
Nvidia and Broadcom
Unlike Alphabet and Amazon, which are spending big now to benefit later, Nvidia (NVDA 0.48%) and Broadcom (AVGO +0.88%) are benefiting right now. That’s because they’re designing and providing the high-powered processors that go into these data centers. It will take years for the cloud giants to construct all the data center infrastructure that they intend to during this build-out phase of the AI revolution, which will mean an extended growth timeline for these two chipmakers.
Each of these megacaps is experiencing phenomenal growth: Wall Street analysts expect Nvidia to grow its revenue at a 72% pace this year and anticipate Broadcom growing at a 63% clip. That’s particularly impressive growth for companies of their size. Additionally, demand for their offerings could continue growing for years to come.
Today’s Change
(0.88%) $3.66
Current Price
$421.09
Key Data Points
Market Cap
$2.0T
Day’s Range
$413.36 – $423.13
52wk Range
$195.94 – $429.31
Volume
438K
Avg Vol
25M
Gross Margin
64.96%
Dividend Yield
0.59%
Nvidia estimates that total global data center spending was $600 billion in 2025. However, by 2030, it projects that figure will reach $3 trillion to $4 trillion annually. If that massive growth prediction pans out, it will make both chipmakers’ shareholders a ton of money over the next five years.
Taiwan Semiconductor Manufacturing
Of all of these companies, Taiwan Semiconductor Manufacturing (TSM +0.42%) is the most neutral bet in the AI race. Taiwan Semiconductor is the primary logic chip manufacturer for many leading businesses, including Nvidia and Broadcom. As long as there is increased AI spending, Taiwan Semiconductor will continue to thrive.
Taiwan Semiconductor Manufacturing
Today’s Change
(0.42%) $1.66
Current Price
$397.72
Key Data Points
Market Cap
$2.1T
Day’s Range
$392.13 – $403.99
52wk Range
$170.59 – $414.50
Volume
438K
Avg Vol
14M
Gross Margin
61.02%
Dividend Yield
0.84%
Recently, the company reported stellar first-quarter earnings, with revenue rising 41% year over year in U.S. dollars. Management also increased its guidance for 2026 revenue growth to above 30%. Clearly, Taiwan Semiconductor likes what it sees regarding chip demand.
There are a few nearly guaranteed winners in the AI arms race, and Taiwan Semiconductor is one of them. The chips its foundries produce are also used in countless other technologies around the globe, so it’s not 100% levered to AI like Nvidia is. If you could only own one AI stock and wanted to take a balanced approach to the trend, TSMC could be the best one to pick, and it’s a strong buy in May.
Keithen Drury has positions in Alphabet, Amazon, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.