Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The tech sector is projected to remain the main growth engine in early 2026 due to the relentless demand for AI infrastructure. Investors are now looking at stocks with solid fundamentals for their long-term wealth-building plans.
Key Takeaways:
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AI infrastructure and cloud services demand stay high throughout 2026.
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AMD projects an annual revenue growth of up to 35%.
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Microsoft Azure sees a 40% revenue jump fueled by Copilot integration.
Advanced Micro Devices, Inc. has become a top chip supplier for both data centers and consumer PCs. The company reported an annualized revenue growth of over 20% during the last two years.
According to a report by The Motley Fool, AMD's data center revenue hit a record $4.3 billion. Management expects this specific business line to grow at over 60% annually for the next five years.
The company's gaming segment also saw a massive boost, nearly tripling compared to the previous year. Analysts expect the company's earnings to grow at an average rate of 45% every year.
Microsoft’s Ecosystem Strength in the AI Economy
Microsoft Corporation is solidifying its position through a massive ecosystem of productivity tools and cloud services used by billions. Their subscription-based model provides a very steady cash flow for continuous innovation.
Based on internal company data, Microsoft Cloud revenue grew 26% to reach $46 billion. The company also poured $69 billion into capital expenditures for infrastructure over the past year.
Microsoft 365 now has more than 400 million paid subscribers globally. Meanwhile, their Copilot AI assistant has surpassed 100 million monthly active users.
Azure revenue jumped 40% last year as AI adoption became even more mainstream. Operating profit grew 24%, which actually outperformed its 18% top-line revenue growth.
Their massive data center fleet is the backbone for all of Microsoft’s software services. Analysts expect Microsoft’s earnings to grow consistently at a rate of 13% per year.
The combination of AMD's hardware innovation and Microsoft's software ecosystem creates a very solid long-term investment opportunity. Staying focused on infrastructure is the ultimate key to winning in this AI-driven economy.
Reference:
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The Motley Fool, 2 Artificial Intelligence (AI) Stocks to Buy in January and Hold for 10 Years.. Accessed on January 19, 2026
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Featured Image: Shutterstock
