September 5, 2026 · Michael Vodicka · 5 min read
The world will spend $2.59 trillion on artificial intelligence this year, up 47% from last year. Here are my two favorite AI stocks for 2026 — Nvidia on the hardware side, Palantir on the software side. Both are long-term holdings for my clients.
AI Spending Hits $2.59 Trillion in 2026
Artificial intelligence is the biggest spending boom technology has ever produced. The world will spend $2.59 trillion on it this year, up 47% from last year. That is real money moving through real companies, and it is still speeding up.
There are many great investments to capitalize on this trend, and my clients own a number of them. Chips, data centers, power, software.
Two are my favorites. Nvidia on the hardware side and Palantir on the software side. Both are popular holdings with my clients, both are long-term positions, and we are looking for these stocks to keep climbing.
In this report I am going to cover three things. How big this buildout really is and where the money is going. Why I like these two companies. And two things I am watching for my clients.
How Big the AI Buildout Really Is
Gartner counts every dollar spent on AI, from the chips to the consultants who install it. That is the $2.59 trillion figure. Goldman Sachs counts only the building — the data centers and the equipment inside them — and puts that near $1 trillion this year, with roughly $1.8 trillion spent since 2022.
Here is the number that got my attention. The money going into building AI equals about 1.8% of the entire US economy this year. Goldman expects that to reach 2.5% next year and 2.8% in 2028. Buildouts on that scale do not come along often.
And the spending is starting to pay off for the companies doing it. Nvidia’s Jensen Huang put it plainly last month: “AI has reached its inflection point. It’s doing useful work.” That is the part that matters to me as an investor. Money spent on a promise is a risk. Money spent on something that works is an investment.
How Much of the US Economy Goes Into Building AI
Navy is this year. Gold is what Goldman expects next.
1.8%
2.5%
2.8%
Source: Goldman Sachs, 2026. Forecasts change and are not guarantees.
Where the AI Money Goes
The split is worth a look. Most of the money goes into the chips and data centers that make AI run. The next pieces are the people who set it up, and the software that sits on top and puts it to work.
Where the World’s AI Money Goes in 2026
Nvidia sits in the navy bar. Palantir sits in the gold one.
$1.43T
$586B
$453B
Source: Gartner worldwide AI spending forecast, May 2026. The three largest categories shown.
My Two Favorite AI Stocks for 2026
Somebody has to build the machines, and somebody has to make them useful. These two companies sit on either side of that line.
Nvidia: The Hardware Side
Nvidia makes the chips that almost every serious AI system in the world runs on. Last quarter it sold $89 billion of data center hardware, up 117% from a year ago, and total sales grew 106%. Management guided to $108 billion for the current quarter. Numbers like that are remarkable from any company, and Nvidia is one of the largest in the world.
What I like just as much is the price. Nvidia keeps 75 cents of every sales dollar as gross profit and earned $193 billion over the past year. Even after the run, you pay about $19 for every dollar of profit Nvidia is expected to earn next year. That is roughly what you pay for the average S&P 500 company. For a business growing like this one, I think that is a very fair deal.
Palantir: The Software Side
Palantir builds the layer between an organization’s data and the decisions it makes every day. It started with the government. Defense and intelligence agencies have run on its software for two decades, and that kind of trust takes a very long time to earn. Government sales grew 90% last quarter. The commercial side is the bigger story now, with US businesses buying 149% more Palantir software than a year ago.
And the company makes real money while it grows. Palantir kept 62 cents of every sales dollar as operating profit last quarter, with $9.2 billion in the bank and no debt. It is also sitting on $6.24 billion of US work it has won but not yet delivered, up 124% in a year. That is business already on the books, and that kind of visibility is rare in a company growing this fast. I have a lot of respect for what they have built.
“Somebody has to build the machines, and somebody has to make them useful. I want my clients to own both sides of that.”
— Michael Vodicka, The Vodicka Group
What These Two Stocks Have Done
Both have been terrific stocks, and the clients who have held them have been richly rewarded for their patience. Since the start of 2023, Nvidia is up 1,478% and Palantir is up 2,615%.
What $10,000 Put In at the End of 2022 Is Worth Today
$271,000
$158,000
$20,000
Share prices only, no dividends. End of 2022 through September 4, 2026. Source: StockAnalysis, Macrotrends. Past performance does not predict future results.
Neither ride was smooth. Nvidia has had four separate drops of 20% or more since 2023, and the worst of them was a 35% slide in early 2025. Each time it went on to a new high. Palantir’s worst was steeper, giving back 49% between last November and June, and it has already won most of that back. That is ordinary for great growth companies, and it is all part of the game.
Two Things I’m Watching
Neither of these is a reason to sell. They are the two things I keep an eye on for my clients.
The Pace of Spending
Almost all of this rests on a handful of very large companies continuing to spend. They are funding it out of enormous profits rather than borrowing, which is a big part of why I am comfortable. If that spending slows, these two stocks would feel it early.
What You Pay for Palantir
Nvidia’s price looks reasonable to me. Palantir’s is rich, and I would not tell you otherwise. You pay about $51 for every dollar of sales the company expects this year. Wonderful businesses often trade at prices like that and go on to do very well, so it does not scare me off. It does make the ride bumpier, and that is something I plan around.
My Plan for Your Portfolio
We are holding both for the long run, and we are looking for these stocks to keep climbing.
These positions move further than the market in both directions, and that is the deal you accept when you own them. So I size them thoughtfully and I do not let one get too large. That is what let us sit through this past spring calmly.
What we own here are two excellent businesses on either side of the biggest spending boom technology has ever seen. One builds the machines. The other makes them useful. That is worth being patient for.
Expect a bumpy ride along the way. My job is to keep us disciplined through it. Stay focused on the fundamentals. Discipline beats timing.
Related Reading from The Vodicka Group:
→ The SpaceX IPO (SPCX): My Take on the Biggest Debut in History
→ S&P 500 July 2026 Update: Grinding Higher, Near Record Highs
→ S&P 500 Back within 3.5% of All-Time High
→ Schedule a Free Portfolio Review
As always, if my outlook changes, my clients and readers will be the first to know. I’ll be back with another update soon — have a great month!
Until next time,
Michael Vodicka
Founder & Lead Advisor · The Vodicka Group
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.
