Three AI Market Leaders Showing Promise for 2026: A Deep Dive Into Computing Infrastructure Plays

The artificial intelligence sector continues to attract investor attention, with several companies positioned to capitalize on surging demand for computing resources. Among the most intriguing candidates are Nebius (NASDAQ: NBIS), Applied Digital (NASDAQ: APLD), and SoundHound AI (NASDAQ: SOUN) — three firms that could see substantial appreciation if their growth trajectories hold steady through 2026.

Valuation Reality Check: Expensive, But Maybe Worth It

Before diving into each company’s story, it’s crucial to address the elephant in the room: these stocks carry significant premium valuations. None are currently profitable, making the price-to-sales metric the most relevant comparison tool.

Nebius trades at approximately 60 times sales — the highest of the three — but its growth rate justifies closer inspection. When evaluating forward sales multiples (accounting for projected growth), Nebius actually emerges as the most reasonably valued. Applied Digital’s valuation remains relatively stable since major data center milestones aren’t expected until late 2026. SoundHound AI sits in the middle at around 19 times sales. The key question investors face: will these companies’ explosive growth rates outpace the expectations already baked into their stock prices?

The Computing Power Arms Race: Nebius and Applied Digital

The demand for AI computing infrastructure has reached unprecedented levels, creating opportunities for companies that can supply it. Two of our three candidates directly benefit from this trend.

Nebius emerged from the upheaval surrounding Yandex following geopolitical sanctions. The company operates data centers and leases GPU capacity to clients, with particular strength in supplying the computing power that AI workloads demand. Management has stated that current capacity is fully subscribed, indicating strong market demand. The company projects an annual run rate of $7 billion to $9 billion by end of 2026 — a staggering jump from its $551 million ARR at the close of Q3. This kind of expansion creates genuine potential for stock appreciation.

Applied Digital takes a similar but distinct approach, constructing and operating data centers with particular focus on two North Dakota facilities. The company benefits from long-term commitments through 15-year leases at multiple locations and maintains a strategic partnership with CoreWeave. In the first quarter of fiscal 2026 (ended August 31), revenue surged approximately 84% year-over-year. As new computing capacity becomes operational, revenue acceleration should follow, potentially driving outsized stock performance.

The Software Play: SoundHound AI’s Generative Agent Platform

While Nebius and Applied Digital represent infrastructure bets on AI market expansion, SoundHound AI offers software-driven exposure. The company combines generative AI with audio recognition capabilities to build a platform deployable across numerous industries.

The practical applications are compelling: customer service automation, voice-activated interfaces, and agent-based solutions for enterprises. The technology could streamline operations in sectors ranging from retail to healthcare. In its most recent quarter, SoundHound AI posted 68% year-over-year revenue growth and raised full-year guidance — signals of accelerating adoption. Whether this momentum translates into 2026 success remains to be seen, but the underlying opportunity is substantial if enterprise deployment accelerates as expected.

What 2026 Could Bring

The AI market is still in its early innings, and these three companies occupy different positions within it. Infrastructure providers (Nebius and Applied Digital) benefit from fundamental supply constraints. Software platforms like SoundHound AI depend on achieving widespread adoption and proving sustained demand for their solutions.

While none of these stocks represents a bargain on valuation grounds, their growth profiles suggest meaningful upside potential exists. Market expectations are high, but if Nebius executes its capacity expansion, Applied Digital completes its data center buildout successfully, and SoundHound AI demonstrates durable customer adoption, all three could deliver the kind of returns that make them compelling for growth-oriented investors willing to tolerate significant risk.