Two AI Stocks That Showed Promise in 2025: Why Both Deserve Your Attention in 2026

Last year, I highlighted two artificial intelligence stocks as particularly compelling investment opportunities: Nvidia and Meta Platforms. While their 2025 performance diverged—Nvidia delivered a robust 39% return versus Meta’s more modest 13% gain—both demonstrated the validity of the underlying investment thesis. The broader market’s 16% rise paints an interesting picture: Nvidia significantly outpaced the S&P 500, while Meta lagged behind, yet each company’s core business fundamentals support renewed investor interest heading into 2026.

The question now isn’t whether these AI stocks remain viable holdings, but whether the valuation reset and business momentum make them even more attractive than they were twelve months ago. Let’s examine what has evolved—and what hasn’t—for each company.

Nvidia: A Chip Architecture Story That Keeps Unfolding

When I assessed Nvidia in early 2025, the investment case centered on a straightforward premise: the company’s graphics processing units would remain the gold standard for training and deploying artificial intelligence models. That premise holds today with even greater conviction.

The semiconductor landscape is shifting in Nvidia’s favor. Last year brought the Blackwell Ultra architecture to market, representing a significant leap beyond the prior generation. But the real story for 2026 centers on the forthcoming Rubin platform. The efficiency gains are staggering—companies deploying Rubin will require just 25% of the GPU volume previously needed to train equivalent AI models. For inference workloads, the improvement is even more dramatic: a 90% reduction in processor requirements compared to the Blackwell generation.

From a valuation perspective, Nvidia has become more attractive. Twelve months ago, the stock traded at 47 times forward earnings. Today, at 40 times forward earnings, it offers better value despite maintaining strong growth momentum. Wall Street’s fiscal 2027 revenue growth projections (ending January 2027) stand at 52%—precisely where consensus estimates landed a year prior for fiscal 2026. The company simply continues to execute on the same powerful trajectory, and now investors get it at a discount. For AI stocks seeking exposure to the foundational technology layer, Nvidia remains the most defensible position.

Meta: Social Media Resilience, AI Spending Uncertainty

Meta’s core business delivered impressive results throughout 2025. In Q3, the company generated 26% year-over-year revenue growth, accelerating from Q2’s already-strong performance. The social media division continues to be a cash generation machine, which should not be overlooked in the excitement around artificial intelligence spending.

Yet Meta’s stock weakness tells a different story. Down approximately 15% from its August all-time high, the stock has struggled as investors grapple with capital expenditure plans. Specifically, Wall Street remains uncertain about the magnitude of data center spending Meta will deploy in 2026 as part of its AI infrastructure buildout. This spending is substantial—billions of dollars directed toward an outcome that remains unproven.

At 22 times forward earnings, Meta’s valuation is reasonable relative to its revenue growth rate and the stability of its advertising business. The real question facing investors in this AI stock is whether management’s aggressive data center investments will generate meaningful returns through improved AI capabilities, or whether the company will struggle to demonstrate sufficient business impact. If Meta successfully deploys its AI infrastructure to enhance content recommendations, drive advertising targeting improvements, or unlock new revenue streams, the stock has significant upside potential. Conversely, if the returns-on-investment prove elusive, the company may remain constrained by a lower valuation multiple.

Building an AI Stocks Portfolio in 2026

Both companies merit serious consideration for portfolios seeking artificial intelligence exposure. Nvidia offers the clearer near-term visibility and the benefits of industry-leading technology adoption across the sector. Meta presents a more nuanced opportunity—excellent cash generation from proven social media platforms paired with uncertainty about AI infrastructure returns, but priced reasonably enough to compensate for that risk.

The divergence in 2025 performance between these two AI stocks should not dissuade investors from recognizing their respective strengths. Each company has delivered on fundamental promises: Nvidia’s technology remains indispensable, and Meta’s business foundation remains solid. The difference is that Nvidia’s AI upside appears more certain, while Meta’s potential requires belief in management execution. For diversified investors, owning both positions hedges against the different risks each presents while maintaining exposure to compelling long-term AI industry trends.