We expect S&P 500 earnings to grow at a double-digit rate this year and we also like companies that increase their dividends at a 10%-plus rate. How does the AI marketplace stack up against those metrics? Pretty well. We derived a model of the size and scope of the global AI industry, based on our coverage of major publicly traded players and most of the mid-tier players, along with our industry knowledge of private players. We estimate that annual revenue from the global AI infrastructure industry -- data center spending, chips, network equipment, storage etc. -- amounted to $600 billion in 2025. We expect that to grow at a 40% CAGR through 2030, when total revenue is forecast to reach $3.0 trillion. Forecasters are making such claims because the market for AI technology is changing rapidly and broadening dramatically. In fact, in the months leading up to Nvidia's latest quarterly results release, the company announced multiple new AI partnership deals -- not with the hyperscalers that dominated earlier GPU demand, but with multiple neoclouds, large global enterprises, and sovereign clients. Indeed, as AI winnings are redeployed into other areas (healthcare, aerospace & defense, financial services), the industries can benefit from operational efficiencies, new products, new markets, and disruptive developments. From an investment standpoint, a market rotation of assets out of purely AI and into potentially beneficiary segments can be healthy for near-term stability in the stock market. The AI trade may be bumpy going forward. But like other transformational technology trades before it (cloud, internet, semiconductors, and PCs), it seems likely to be long and fruitful.

Argus is hosting a five-part webinar series on Artificial Intelligence (AI), examining how this dynamic force will have an impact across the investing universe. Our team of analysts will identify companies we see as leaders or innovators in this evolving space. The series started on February 4 with a look at how AI is playing out in its dominant sector: Information Technology. Argus Analysts Jim Kelleher, CFA, and Joe Bonner, CFA, broke down the impact of AI on multiple industries within Information Technology. In subsequent webinars, we will examine the impact of AI on the Healthcare (March 4), Consumer (April 1), Financial (May 6), and Industrial/Energy (June 3) sectors. For our list this week, we present stocks that were featured in our initial webinar on IT, all of which are rated BUY at Argus.

As it does every year, the Argus analyst team prepared its top stock picks for 2026. Each analyst surveyed their coverage list, reviewed forward-looking indicators for companies, and forecast which companies they believe seem best positioned for growth and investment returns in the new year. Analysts weigh potential economic and corporate headwinds and tailwinds, and have solid relationships with management teams of the companies they follow. The Argus Investment Policy Committee, comprised of our most-senior staff, supports recommendations by providing macro outlooks for the economy, interest rates, earnings, and the stock market. The following are the Argus Top Stock Picks for 2026.

Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence to run large language models. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.