If You Can Only Buy 1 AI Stock for the Rest of 2026, Make It This One

Artificial intelligence (AI) stocks have regained their mojo after a tepid start to 2026. The Global X Artificial Intelligence & Technology ETF, an exchange-traded fund that invests in companies using AI in their operations and selling related hardware and software solutions, has appreciated by 19% so far this year.

It is worth noting that the ETF has jumped by 28% since the beginning of April, outpacing the S&P 500's 12% gain over the same period. It is easy to see why AI stocks are rallying once again. Major hyperscalers and AI companies continue to invest heavily in AI data centers to meet the booming demand for AI software solutions.

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Companies such as Palantir Technologies and Anthropic are witnessing remarkable demand for their software solutions that help customers unlock major productivity gains. So, it is easy to see why there are no signs of a slowdown in AI data center investments. The good part is that the huge backlogs of AI software providers and the shortage of critical components should ensure that companies continue to invest billions of dollars to meet the heavy compute demand.

As a result, buying shares of Lam Research (NASDAQ: LRCX) could turn out to be one of the smartest moves in 2026. Let's look at the reasons why this semiconductor stock may be the only one you need to invest in to capitalize on the AI supercycle.

Lam Research is one of the best ways to capitalize on AI's growth

The growing demand for AI compute explains the heavy demand for various types of chips, including graphics processing units (GPUs), server processors, custom AI processors, and memory. Companies designing and manufacturing these chips are expecting terrific sales growth.

Broadcom, for instance, is expecting a 5x increase in its AI chip revenue in just two years. Nvidia estimates it can sell a whopping $1 trillion worth of data center AI chips in 2026 and 2027. Meanwhile, memory manufacturers are scrambling to increase supply to address the huge shortage of memory chips.

All this explains why there is terrific demand for wafer and fabrication equipment (WFE) that's needed to manufacture chips. This is great news for Lam Research, which designs and manufactures semiconductor manufacturing equipment for chipmakers, foundries, and memory companies. The company recently increased its 2026 WFE spending forecast to $140 billion from an earlier estimate of $135 billion.