Nvidia will remain the best AI chip game for the foreseeable future.
Microsoft’s cloud and AI businesses are expanding rapidly.
Amazon’s cloud, e-commerce and advertising businesses have plenty of room to grow.
10 Stocks We Like More Than Nvidia ›
The Dow Jones Industrial Averagethe price-weighted index that tracks America’s 30 largest companies, is a benchmark of the US economy. It is not as diversified as market cap weighted S&P 500but it’s still a good starting point to find some blue chip stocks that can deliver reliable long-term returns.
The Dow is often associated with slower growing blue chip stocks such as Verizon Communications and Caterpillarbut it’s also home to a lot of higher-growth tech stocks. Let’s take a look at three of them — Nvidia(NASDAQ: NVDA), Microsoft (NASDAQ: MSFT)and Amazon(NASDAQ: AMZN) — and see why these Dow components could soar higher in 2026 and beyond.
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Nvidia, the world’s largest manufacturer of discrete GPUs, is still the easiest way to profit from the secular expansion of the artificial intelligence (AI) market. Its data center GPUs are used to process complex AI tasks, and most of the top tech companies—including OpenAI, Microsoft, and Amazon—use its chips. Nvidia also locks its customers in with CUDA (Compute Unified Device Architecture), a proprietary software platform that developers use to create Nvidia-optimized AI applications.
Nvidia faces competition from cheaper data center GPU makers such as AMD and custom AI accelerators, but should continue to sell the best picks and shovels for the AI gold rush for the foreseeable future.
From fiscal 2025 (which ended in January) to fiscal 2028, analysts expect Nvidia’s revenue and earnings per share (EPS) to both grow at a compound annual growth rate (CAGR) of 45% as the AI boom continues. At 26 times next year’s earnings, Nvidia still looks surprisingly cheap relative to its long-term growth potential.
Nvidia is already the most valuable company in the world, with a market cap of $4.4 trillion, so it likely won’t replicate its 21,400% growth over the past decade. But its core engines are firing on all cylinders — and it could remain one of the best-performing stocks in the Dow next year.
Over the past decade, Microsoft has expanded its cloud infrastructure platform, Azure; converted most of its on-premise software to cloud-based services; ported its top productivity apps to iOS and Android devices; and updated its software with AI-based services.
The “mobile-first, cloud-first” evolution — which accelerated after its cloud chief Satya Nadella took over in 2014 as its third CEO — transformed Microsoft from a slow-growth technology company to a high-growth one that was well-diversified in the cloud, AI, mobile and gaming markets. It also became OpenAI’s largest single investor and integrated the AI startup’s generative AI tools into its own cloud infrastructure platform and productivity services.
From fiscal 2025 (which started in July) to fiscal 2028, analysts expect Microsoft’s revenue and EPS to grow at a CAGR of 16% and 17%, respectively. This strong growth should be fueled by the ongoing AI boom as more companies upgrade their cloud infrastructure services to support the latest AI applications.
Microsoft is already the world’s third most valuable company with a market cap of $3.65 billion, but it doesn’t look overvalued at 26 times next year’s earnings. So if you’re looking for a simple way to capitalize on the growth of the cloud and AI markets, Microsoft ticks all the right boxes.
Amazon, the world’s largest e-commerce platform and cloud infrastructure company, is still growing. Its e-commerce business continues to expand into more overseas markets, and its cloud business is taking advantage of the AI boom. It’s also expanding its advertising business — which sells promoted listings and integrated ads on its platforms.
Amazon generates most of its revenue from its e-commerce business, but most of its profits come from its higher-margin Amazon Web Services (AWS) cloud platform. By expanding AWS, it can subsidize the expansion of its Prime ecosystem with significant discounts, free shipping options, cheap hardware and more streaming content. It’s already locked into more than 240 million Prime members worldwide, giving it a wide moat over its retail competitors. Its growing advertising business could also eventually become its second profit driver (alongside AWS) and give it even more room to expand its ecosystem.
From 2024 to 2027, analysts expect Amazon’s revenue and EPS to grow at a CAGR of 11% and 20%, respectively. It’s the fifth most valuable company with a market cap of $2.5 trillion, but still looks reasonably valued at 29 times next year’s earnings. Therefore, I wouldn’t be surprised if Amazon easily outperforms the Dow in 2026 and beyond.
Before buying Nvidia stock, consider the following:
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Leo Sun has positions in Amazon and Verizon Communications. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Microsoft and Nvidia. The Motley Fool recommends Verizon Communications and recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
These 3 Dow stocks will rise in 2026 and beyond were originally published by The Motley Fool
