Three AI Chipmakers Worth Your Attention in 2026: Beyond the Palantir Hype

Key Takeaways

• Alphabet operates across the entire AI value chain, from cloud to chips to applications
• Micron controls a rare bottleneck in AI infrastructure as a key HBM supplier and member of the memory oligarchy
• Nvidia maintains superior growth dynamics and valuation efficiency compared to trending alternatives
• [Learn about 10 underrated stocks for 2026 ›]

Palantir Technologies dominated headlines throughout 2025, with shares surging roughly 140% after a 340% rally the prior year. The company’s CEO emphasized this is “the beginning,” signaling vast room for expansion. Yet explosive returns and media attention don’t always correlate with the best investment opportunities.

Looking at the broader artificial intelligence landscape, three alternative stocks deserve equal—or greater—consideration heading into 2026.

1. Alphabet: Diversification Across AI’s Entire Ecosystem

Palantir specializes in one dimension: AI software applications. By contrast, Alphabet participates across virtually every layer of artificial intelligence development and deployment.

Google’s cloud division has become the fastest-expanding among the major cloud providers. Startups building AI solutions overwhelmingly select Google Cloud as their foundation, with nearly all billion-dollar AI companies relying on the platform.

On the model front, Gemini 3.0 Pro currently ranks first on LMArena’s performance benchmarks for large language models. Its counterpart, Gemini 3.0 Flash, claims the second position. Alphabet has woven Gemini into search functionality, its productivity suite, browser tools, and specialized platforms for constructing AI agents.

The company has also made significant inroads into semiconductor manufacturing. Its Tensor Processing Units (TPUs) power training operations across major technology firms—Apple leveraged them for Apple Intelligence, while Anthropic relies on TPUs to optimize computational costs. Meta is reportedly exploring TPU integration throughout its data center infrastructure.

2. Micron: The Unsung Infrastructure Player Behind the Memory Oligarchy

Micron Technology belongs to an exclusive club: the world’s high-bandwidth memory suppliers. Only three manufacturers produce HBM globally, and Micron stands as the sole American-based competitor.

Here’s a critical point: AI software frameworks like Palantir’s cannot execute without processors. Those processors cannot function without the specialized memory that Micron manufactures. One could convincingly argue that Micron anchors the entire AI infrastructure stack more fundamentally than software-focused competitors.

Valuation tells an even more compelling story. Palantir trades at a forward price-to-earnings multiple of 181.8x, while Micron sits at just 9.2x. While Palantir’s earnings expand at a faster absolute rate, Micron’s valuation remains substantially more attractive when accounting for long-term earnings growth trajectories. Micron’s price-to-earnings-to-growth ratio reaches a modest 0.5 compared to Palantir’s 2.8.

3. Nvidia: Matching Growth With Superior Valuation Efficiency

Nvidia continues to dominate as the definitive player in AI infrastructure. Its graphics processing units remain unmatched in popularity and capability for machine learning workloads.

When comparing Nvidia directly to Palantir, the metrics align closely in surprising ways. Both companies reported identical revenue expansion: Palantir achieved 63% year-over-year growth in Q3 2025, while Nvidia posted 62% growth. The divergence emerges in quarter-over-quarter acceleration. Nvidia’s Q3 sequential growth hit 22%, outpacing Palantir’s 18%. Management guidance reinforces this momentum differential—Nvidia projects 14% sequential expansion for Q4, versus Palantir’s 12.5%.

Despite matching growth trajectories, Nvidia’s valuation looks substantially cheaper across virtually all metrics. Nvidia appears positioned to deliver superior risk-adjusted returns throughout 2026, even if Palantir’s shares experience sharper percentage gains.

Making Your Decision

The Motley Fool’s Stock Advisor team recently identified what they view as the optimal 10 stocks for the current investment environment. Consider historical precedent: Netflix on the list in December 2004 would have transformed a $1,000 investment into $490,703. Nvidia, added in April 2005, would have grown $1,000 to $1,157,689 by January 2026.

Stock Advisor’s track record shows a cumulative 966% average return—substantially outpacing the S&P 500’s 194%. The 2026 opportunity set awaits discovery through careful analysis rather than momentum chasing.

Keith Speights maintains positions in Alphabet, Apple, and Meta Platforms. The Motley Fool holds and recommends Alphabet, Apple, Meta Platforms, Nvidia, and Palantir Technologies.