Best Ai Stocks this January 2026 in the UK

SAP SE stands out as a European software leader, adept at integrating AI into business processes. With a recent dividend yield of approximately 0.91% and an impressive five-year return of 77.56%, it remains a compelling choice for investors seeking innovation in enterprise application software. Analysts have a positive outlook, with a median 12-month price target set at $519, supported by strong ratings from firms like Barclays and Argus Research.

SAP SE (SAP) is a German company that specializes in enterprise application software.

ASML stands out as a top-rated European stock poised to gain from the surge in AI processes across the continent. With an impressive 1-year return of 81.95% and a robust 5-year return of 144.97%, it offers an attractive investment opportunity for those looking to capitalize on emerging technologies. Analysts are optimistic, setting a median 12-month price target of $1,432.50, reflecting strong confidence in the company's growth potential.

Investing in ASML carries risks, such as potential disruptive technologies and market downturns, which could impact its stock price.

Broadcom is positioned as a leading player in the AI semiconductor market, with expectations for its AI revenue to double to $8.2 billion year-over-year by Q1 2026. This growth trajectory coincides with a solid dividend yield of 0.71% and impressive returns of 35.11% over the past year and nearly 600% over five years. Analysts maintain a positive outlook, with a median price target of $450, reflecting strong confidence in the company's financial health and performance.

AVGO is currently trading near its 52-week high and has risen 2.53% recently, indicating it may still be a good buy.

AVGO shares dropped 4.6% due to negative news, including a Chinese directive against U.S. software, a large debt offering, and significant insider stock sales.

Advanced Micro Devices remains a top contender in the semiconductor space, particularly for investors tracking AI stocks. With a remarkable 1-year return of 105.03% and a 5-year return of 173.45%, AMD is prominently featured in AI-focused ETFs. Analysts have a median 12-month price target of $290.00, indicating strong growth potential amidst concerns about competition and rising memory prices.

AMD's stock has dropped 23% in November due to concerns about interest rates, rising memory prices, and competition in AI, despite the CEO's optimistic outlook for the data center market.

AMD projects a revenue growth of over 35% CAGR through 2030, aiming for a significant share in the AI data center chip market and over 50% in the data center CPU market.

AMD's strong performance is driven by its leadership in CPUs and increased market share in datacenter GPUs, positioning the company to capitalize on growing demand in data center computing.

Palantir Technologies (NASDAQ: PLTR) has delivered impressive returns, with a 1-year increase of 115.82% and a staggering 409.21% over the past five years, reflecting strong market interest in AI stocks. Analysts have set a median 12-month price target of $201.00, indicating potential upside, though opinions vary, with ratings ranging from "Buy" to "Underperform." While the stock has seen a slight decline recently, it remains positioned at the higher end of its 52-week range, suggesting continued investor confidence.

Palantir Technologies (NASDAQ: PLTR) has experienced significant growth, with a 2,400% increase over the past three years, driven by strong revenue growth and high demand for its software.

PLTR is currently trading near the top of its 52-week range and above its 200-day moving average, although it recently experienced a slight decline of 0.75%.

Some bullish estimates suggest PLTR could reach $500 in the coming years, which would be nearly three times its current price, supported by ongoing institutional buying.

Palantir's Rule of 40 is calculated by adding the company's year-over-year revenue growth rate to its adjusted operating margin, allowing for comparability with other companies.

Micron Technology Inc stands out as a leading semiconductor manufacturer, particularly noted for its strong performance in AI chips. With a remarkable one-year return of nearly 264% and a solid five-year return of over 383%, this stock is highly regarded by analysts, who have assigned it a "strong buy" rating. With a median price target of $350.00 and a modest dividend yield of 0.16%, Micron is positioned as an attractive investment opportunity for those looking for growth and long-term stability.

MU is currently a good buy, with expectations to exceed $150 in the next two months due to strong revenue and growth outlook.

With a 0.15% dividend yield and significant share repurchase plans, Micron Technology is an attractive option for long-term holding.

Over the past 12 months, MU has outperformed AMD, with a return of +225% compared to AMD's +89%.

Intel Corp, a semiconductor chip maker founded in 1968, is showing renewed strength in the AI hardware sector, particularly with its efficient Gaudi 3 product. Analysts are optimistic, rating the stock as a "buy" and predicting a revenue growth of 4.81% to $56.01 billion over the next year, supported by the rising demand for AI computing. With a current dividend yield of 2.63% and a remarkable 1-year return of 148.49%, Intel presents an attractive opportunity for investors looking to capitalize on a recovery trajectory.

Intel (INTC) is projected to achieve a revenue growth of 4.81% to $56.01 billion over the next year, driven by increasing AI demand, manufacturing advancements, and a restructured cost base.

Analysts forecast Intel's revenue will grow at a CAGR of 4% from 2024 to 2027, with expectations of returning to profitability in 2026 and a 187% increase in EPS by 2027.

In 2025, Intel's shares rose 84%, outperforming Nvidia and AMD, indicating a positive shift in investor sentiment despite ongoing challenges in its turnaround.