The ongoing artificial intelligence (AI) boom has been led by multiple stocks, but American semiconductor giant Nvidia (NASDAQ: NVDA) and software firm Palantir (NASDAQ: PLTR) have emerged as key top performers.
Notably, Nvidia and Palantir have posted year-to-date gains of 31% and 137%, respectively.
With the new year approaching, new players are emerging with potential to surpass Nvidia and Palantir. To identify a standout stock for 2026, Finbold consulted OpenAI’s ChatGPT.
In this case, the AI model singled out Microsoft (NASDAQ: MSFT) as a compelling choice. In 2025, Microsoft’s stock has rallied over 20%, trading at $514.60 as of the last market close.
Microsoft stock fundamentals
ChatGPT highlighted that Microsoft’s recent AI momentum has been driven largely by its Copilot suite, which transitioned from pilot programs to broad enterprise rollouts in 2025. The adoption is already translating into tangible revenue growth within Office 365 and Dynamics.
Unlike Nvidia, whose growth is tied to hardware cycles, or Palantir, which is highly dependent on contract execution, Microsoft benefits from a recurring subscription model that allows AI revenue to compound more predictably.
The model added that the company’s strategic positioning further reinforces its potential. In this line, Azure has steadily gained market share in AI workloads, strengthened by close integration with OpenAI.
At the same time, Microsoft’s expansive ecosystem, spanning productivity software, cloud infrastructure, security, and gaming, provides a unique moat, with each segment poised to be enhanced by AI capabilities.
MSFT stock risks
From a risk-return perspective, ChatGPT highlighted Microsoft as a balanced choice. Nvidia offers growth but faces valuation and dependency risks if hyperscaler spending slows in 2026.
Palantir has upside but is vulnerable to execution issues, while Microsoft’s diversified AI exposure limits downside even if market hype fades.
Finally, ChatGPT noted that accelerated AI demand could allow Nvidia to maintain dominance due to GPU scarcity. Palantir could surge if its AI platform secures a wave of government or enterprise adoption.
Microsoft, meanwhile, must demonstrate that its AI offerings generate new revenue streams beyond bundled value.
Featured image via Shutterstock
