History Says the S&P 500 Will Jump in 2026: 2 Magnificent Stocks to Buy Hand Over Fist Before They Skyrocket

4 weeks ago 4

Harsh Chauhan, The Motley Fool

Sun, December 14, 2025 astatine 9:00 AM CST 7 min read

  • AI is having a affirmative interaction connected AMD's and Alphabet's businesses successful caller quarters, a inclination that's apt to proceed successful 2026.

  • Both companies are expected to station steadfast net maturation adjacent year, paving the mode for further upside successful their banal prices.

  • 10 stocks we similar amended than Alphabet ›

The existent S&P 500 bull marketplace turned 3 years aged successful October 2025. Ryan Detrick, the main marketplace strategist of fiscal services steadfast Carson Group, points retired that erstwhile a bull marketplace hits 3 years, it has a overmuch amended accidental of stretching to an mean of 8 years, based connected investigation of information going backmost to 1950. Detrick's assurance successful this marketplace stems from the steadfast net maturation that tech companies person been clocking. Additionally, HSBC analysts expect the S&P 500 scale to deed 7,500 levels, driven by the sustained spending connected artificial quality (AI) infrastructure.

Technology stocks successful peculiar person clocked awesome returns successful 2025, arsenic is evident from the 22% gains registered by the tech-heavy Nasdaq Composite index. The bully quality for tech investors is that the Nasdaq is apt to caput higher successful 2026 arsenic well, driven by a broader marketplace rally.

These indicators and others suggest that present mightiness beryllium a bully clip to bargain a mates of tech stocks that person been successful awesome signifier connected the marketplace this twelvemonth and person the imaginable to leap adjacent higher successful 2026.

AMD logo connected  a smartphone.

Image source: Getty Images.

With gains of 81% truthful acold successful 2025, Advanced Micro Devices (NASDAQ: AMD) banal has outperformed the broader PHLX Semiconductor Sector index's 46% gains by a wide margin. This coagulated show is simply a effect of AMD's increasing stature successful the artificial quality information halfway market, wherever its graphics processing units (GPUs) and server processors are experiencing steadfast demand.

AMD has signed contracts with large names specified arsenic OpenAI, Oracle, Microsoft, and others to deploy its AI chips. The added contracts assistance explicate wherefore AMD expects an acceleration successful its information halfway gross from adjacent year. The institution pointed retired successful its caller fiscal expert time that its information halfway gross is apt to timepiece an yearly maturation complaint exceeding 60% implicit the adjacent 3 to 5 years. That would beryllium an betterment implicit the 52% yearly maturation this concern has seen successful the past 5 years.

Even better, AMD's idiosyncratic computing (PC) concern is successful good signifier arsenic well. Its lawsuit processor gross was up by 46% twelvemonth implicit twelvemonth successful the 3rd 4th to a grounds $2.8 billion. This conception benefits from the proliferation of AI PCs, arsenic good arsenic AMD's marketplace stock gains against Intel. The bully portion is that 2026 is going to beryllium different terrific twelvemonth for AI PC sales, with shipments expected to surge by 83% to 143 cardinal units.


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