Artificial intelligence has been the most consequential catalyst for the stock market that may surpass the dotcom boom when it’s all said and done. However, unlike the dotcom boom, the AI boom is fueled by revenue growth, successful products, and sustainable companies. Nvidia (NASDAQ:NVDA) has been the AI ringleader, but you might want to set your sights on other AI stocks for higher returns.
The one issue for Nvidia is that its market cap is approaching $5 trillion, and it gets progressively more difficult to move a stock that has a high market cap. Seeking smaller AI stocks can result in market outperformance, and it’s the smaller companies that may produce much higher gains than Nvidia in 2026 and beyond.
This post originally appeared at 24/7 Wall St.