Gartner predicts that AI spending will grow by about 37% in 2026.
Taiwan Semiconductor Manufacturing is expected to benefit from this due to its role as a leading maker of chips for smartphones and data centers.
Apple is about to overhaul its AI features using Google Gemini, which could benefit the stock.
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Management consultant Gartner predicts that AI spending will reach nearly $1.5 trillion in 2025, rising to more than $2 trillion in 2026. This growth is expected to be driven by better integration of AI into devices such as smartphones and PCs, as well as spending on computing infrastructure.
Here are two companies that could benefit from this trend, potentially sending their stocks higher in 2026 and beyond.
Image source: Getty Images.
The first company that should see solid demand if Gartner’s forecast plays out as expected is the world’s largest chip maker. Taiwan Semiconductor Manufacturing(NYSE: TSM) manufactures chips for smartphones, smart devices and high-performance computers, including data centers.
Fourth quarter earnings results were excellent. Revenue grew 25% year-on-year in US dollars due to its leading process technologies, including advanced AI chip technologies.
A bonus for investors is that other business segments are gaining scale, such as smartphone chips. Apple(NASDAQ:AAPL) is another key customer for TSMC, as the company is also known. Revenue from the chipmaker’s smartphone segment rose 11 percent year-over-year, while Internet of Things revenue rose 3 percent and automotive revenue fell 1 percent.
TSMC expects AI chip revenue to grow by more than 50% annually through 2029. The company has every incentive to invest as much as possible to expand its production capacity to meet demand in the high-performance computing market. However, management is still gearing investments toward making chips for smartphone customers, clearly suggesting that it sees more growth for these chips on the horizon.
Apple has reportedly already secured about half of TSMC’s available manufacturing capacity for its advanced 2-nanometer process technology, which will be used for the A20 chip in new iPhones coming later this year.
Overall, TSMC’s 2026 outlook calls for revenue growth of 30 percent in U.S. dollars, with earnings per share expected to rise 25 percent to $13.26, according to Yahoo! Finance. The long-term outlook for chip demand could justify a higher multiple than the stock’s current forward earnings of 26 times. The combination of strong earnings growth and a higher earnings multiple could provide attractive upside potential in 2026.
Image source: Getty Images.
Apple is another great pick to take advantage of rising AI spending. As technology becomes more integrated into everyday devices, it will no doubt benefit this leading consumer brand.
Deeper integration of AI into its devices is a huge opportunity to drive a supercycle of upgrades for Apple. The company may already be gearing up for that potential: For the fourth quarter (ended September 2025), management reported record quarterly revenue of $102 billion, up 8% year over year.
This record revenue was generated by the iPhone, which accounted for nearly half of the company’s total, or $49 billion. This was a strong year-over-year increase of 6%, especially considering that the iPhone 16 and 17 were in limited supply.
Apple is just starting to make its devices more attractive to consumers with artificial intelligence. He has just signed a multi-year deal with Alphabet to use Gemini models for deep AI integration on its devices. Gemini will power future Apple Intelligence features, including a more personalized version of Siri that will launch in 2026.
Analysts expect revenue to rise about 9% in fiscal 2026, with earnings per share rising about 11% to $8.27, according to Yahoo! Finance. I believe that these estimates may significantly underestimate the demand for new products, given the significant revision of Apple Intelligence with Gemini.
Wedbush analyst Dan Ives sees Apple shares rising to $350 in the next year, which is a reasonable estimate given that investors are ignoring the prospect of more substantial revenue and earnings. That would represent a short-term upside of 35% from the current share price of $260, with more gains to come as Apple’s revenue and earnings grow over the long term.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Alphabet, Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
This $2 trillion opportunity could send these top stocks soaring was originally published by The Motley Fool
