The article highlights three stocks to consider for investment in 2026: Nvidia, due to its AI and data center growth prospects; The Trade Desk, undervalued despite recent setbacks and poised for a comeback; and MercadoLibre, a dominant Latin American e-commerce and fintech company with strong growth potential. These stocks are recommended for investors seeking high potential returns in the upcoming years.
Nvidia's dominance in the AI chip market has led to significant stock gains, and two other companies, Broadcom and The Trade Desk, could potentially follow suit. Broadcom is well-positioned in the AI-specific ASIC market with major clients like Meta and Alphabet, while The Trade Desk leverages AI to enhance digital advertising, showing strong revenue growth. Both companies are poised for long-term success driven by AI advancements.
Amid the hype around artificial intelligence (AI) stocks, it's important to consider other investment opportunities. Booking Holdings and The Trade Desk are two companies that meet the criteria for a solid investment, with positive cash flow, stock buyback programs, and growing revenue. Booking Holdings benefits from the resurgence of the travel industry and a lean business model, while The Trade Desk capitalizes on the evolving advertising landscape, particularly in connected television (CTV). Both companies present attractive long-term investment potential outside the realm of AI stocks.
Instead of focusing solely on Nvidia, investors should consider overlooked AI stocks with strong growth potential. The Trade Desk (NASDAQ: TTD) offers advertisers complete transparency and uses AI to match advertisements to their ideal audience, with analysts projecting solid earnings growth. Meanwhile, SentinelOne (NYSE: S) is an innovative cybersecurity stock with autonomous and proactive protection technology, rapidly growing its business and expected to reach $1 billion in revenue in two years. Both stocks present compelling investment opportunities in the tech sector.
Marvell Technology and The Trade Desk are two AI-focused companies poised for significant growth. Marvell's custom AI chips are driving strong revenue growth, with potential for a 31% increase in market cap by 2026. The Trade Desk's AI-powered platform is experiencing rapid revenue growth, potentially leading to an 88% jump in market cap by 2026. Both companies are well-positioned to benefit from the increasing adoption of AI in their respective industries.
Nvidia's remarkable gains have left many AI investors looking for alternative stocks in the industry. Three potential AI investments include Amazon, which benefits from its cloud services and e-commerce business; The Trade Desk, a digital advertising platform leveraging AI and user data; and Tesla, which is developing its own AI technology for autonomous vehicles and has potential for significant growth.
The Trade Desk (TTD) shares surged nearly 20% after the company reported strong fourth-quarter results and provided upbeat guidance for the next quarter, surpassing analysts' expectations for revenue and adjusted EBITDA. The company's improved gross margin and faster growth compared to the digital ad market indicate its ability to gain market share profitably. Additionally, The Trade Desk announced a new $700 million share repurchase program, reflecting confidence in its free cash flow. Despite previous market skittishness due to weak guidance, the stock has seen a 27.5% increase since the beginning of the year, trading close to its 52-week high.
The Trade Desk's shares surged over 18% after the company exceeded revenue expectations and provided strong first-quarter guidance, with fourth-quarter sales increasing by 23% and net income rising by 37%. The company's focus on providing technology for targeted advertising across the web, particularly in the Connected TV and streaming platforms, has contributed to its success. Additionally, the company announced a significant increase in share repurchases, reflecting confidence in its future performance amidst a broader recovery in the digital advertising market.
The Trade Desk (NASDAQ:TTD) reported strong Q4 results, with revenue up 23.4% year on year to $605.8 million, surpassing analyst expectations, and its stock jumping 22.4%. The company's next quarter revenue guidance also exceeded analyst estimates, and it made a non-GAAP profit of $0.41 per share. The Trade Desk's impressive performance indicates its growth in the digital advertising market, and its robust free cash flow and profitability are positive signs for shareholders.
The Nasdaq 100 index, known for its tech-heavy composition, includes undervalued stocks such as PayPal Holdings (PYPL), The Trade Desk (TTD), and Texas Instruments (TXN). Despite strong financial results, PayPal's weak forward guidance led to a stock price drop, while The Trade Desk's revenue guidance fell short of expectations. Texas Instruments faces challenges in the semiconductor market but offers a low valuation and a strong dividend yield.
The stock market saw a strong recovery in 2023, with the S&P 500 and Nasdaq Composite index posting significant gains. Despite this, some bargain stocks like SoundHound AI and The Trade Desk have been overlooked. SoundHound AI specializes in voice recognition and natural language understanding technologies, experiencing strong revenue growth and launching a voice assistant system for restaurants. The Trade Desk operates in digital advertising services, standing out with its advanced platform and Unified ID 2.0 technology. Both companies are poised for growth in 2024, making them attractive investment opportunities.
Wall Street analysts see more upside in AI stocks like The Trade Desk and Docebo compared to Nvidia, with median price targets implying 20% and 24% upside, respectively. The Trade Desk operates the largest independent ad tech platform for media buyers, leveraging AI to optimize campaigns across digital channels, while Docebo operates a learning management system with innovative applications using generative AI. Both companies are projected to outpace industry growth, making them attractive investment opportunities for patient investors.
Analysts predict that 2024 will be the year of AI, driving significant stock gains in the tech sector. Two top stocks expected to surge are Duolingo, which is expanding into new subjects and markets with AI-powered products, and The Trade Desk, a leader in digital advertising set to capitalize on the market's recovery and the shift away from third-party cookies with its AI-driven ad-buying platform.
Shares of digital ad company The Trade Desk dropped 19% after the company reported weaker revenue guidance for the fourth quarter. While the company's third-quarter earnings beat expectations, analysts are concerned about softer ad spending in the coming months, particularly in the auto and entertainment industries. The Trade Desk's growth in connected TV, a significant revenue contributor, is also being questioned for its sustainability. However, some analysts see the dip as a buying opportunity, citing the company's strong position in the AdTech industry.
Shares of ad-tech company The Trade Desk plummeted by approximately 30% in after-hours trading after the company issued weak fourth-quarter revenue guidance that fell short of analysts' expectations. The company cited cautiousness from advertisers in certain verticals, such as the US auto and media/entertainment industries due to strikes, as the reason for the lower guidance. Trade Desk's third-quarter results exceeded estimates, with earnings per share of 33 cents and revenue of $493 million. However, the company projected revenue of at least $580 million for the December period, below the expected $610 million. Trade Desk's stock fell to $53.49 in extended trading.
