All articles tagged with #broadcom
As AI infrastructure spending rises, software stocks face pressure while select hardware plays like Broadcom and Micron Technology stand to benefit. The article argues these two are the new pick-and-shovel AI infrastructure stocks, boosted by data-center capex and memory/networking bottlenecks, making them attractive long-term bets amid the tech sell-off.
A surge in 2026 AI-related spending by hyperscalers is accelerating data-center capex, with Amazon, Alphabet, and Meta guiding over $500 billion in planned spend. Nvidia, Broadcom, and Taiwan Semiconductor stand to benefit the most since chips can account for about half of data-center costs; analysts expect strong revenue growth for all three (Nvidia ~64% in 2027, Broadcom ~51% in 2026, TSM ~34%), and Nvidia even projects global data-center capex topping $3–4 trillion annually by 2030. The buildout is just beginning, making these three stocks attractive picks amid the AI infrastructure boom.
Cisco unveiled the Silicon One G300 switch chip, built on TSMC’s 3‑nm process, with “shock absorber” features to reroute data in microseconds and speed AI training/inference across massive data centers by about 28%. Slated for sale in the second half of 2026, the chip aims to win share in the AI infrastructure market by competing with Broadcom’s Tomahawk and Nvidia’s networking offerings amid a roughly $600 billion AI-spend boom.
OpenAI is reportedly seeking alternatives to Nvidia GPUs due to dissatisfaction with inference performance, citing eight sources. The move follows reports that Nvidia’s plan to invest up to $100 billion in OpenAI has stalled. OpenAI has previously struck deals with AMD and Broadcom to develop custom AI accelerators, signaling a push to diversify hardware sources even as Nvidia remains a major partner.
Broadcom's AI leadership—via custom XPUs and enhanced data-center networking—helped it outpace the Magnificent Seven in 2025 and earn a spot in the 'Ten Titans.' A recent pullback sets up a potential entry as hyperscalers continue AI spending, with forward earnings around 31x making it a reasonably valued growth pick, assuming its AI growth stays on track. Competition from Nvidia and broader AI capex cycles remain risks.
Nvidia leads the AI-chip race with its GPUs and a Rubin architecture on the horizon; AMD is narrowing the gap with ROCm improvements but remains pricier, and Broadcom is pursuing bespoke AI ASICs for hyperscalers. The piece leans Nvidia is the best 2026 buy due to cheaper valuation and faster growth, while a dual Nvidia-Broadcom exposure could outperform if Broadcom’s custom chips gain traction, and AMD needs stronger results to justify its valuation.
Broadcom’s AI-driven data-center demand propelled it into the $1 trillion club and the company is positioned to push toward a $2 trillion market cap by the end of 2026, supported by a robust backlog, a record Q4 revenue of $18B with EPS of $1.74, and optimistic 2026 guidance of about $96.8B in revenue and $10.29 in EPS. With a forward multiple around 32x and ongoing ASIC-based AI hardware advantages (enhanced by OpenAI collaboration), the stock could rise roughly 36% to about $450 by year-end 2026, though valuations may face some multiple contraction amid lofty expectations.
The article argues Nvidia will be strong in 2026 but suggests diversification into three AI-focused chipmakers as viable alternatives: Taiwan Semiconductor (TSMC), Broadcom, and AMD. TSMC benefits from AI chip demand, with AI chip revenue CAGR projected around 60% from 2024–2029 and about 30% YoY growth anticipated in 2026, trading near 23x forward earnings. Broadcom is shifting toward hyperscaler-specific AI ASICs, with AI semiconductor revenue growth highlighted (Q4 AI revenue up 74% YoY; Q1 AI revenue guidance up ~100% YoY). AMD targets a ~60% data-center CAGR through 2030, aiming to be a cheaper Nvidia-like option. The piece cautions against an all-in Nvidia bet and presents these three as a smart way to hedge and potentially capture strong AI-led returns, though no guarantees are promised.
Broadcom stock slid about 1.5% after Intel's Q4 results, as investors weigh AI demand growth and higher AI-related costs; despite the dip, Broadcom is up ~33% over the past year, with valuations in the AI infrastructure space remaining debated.
The Motley Fool highlights Nvidia, Alphabet, and Broadcom as the top AI-powered stock picks for 2026. Nvidia’s Blackwell and Rubin platforms are delivering about $500 billion in revenue visibility through 2026, with Rubin improving AI throughput and cost per unit. Alphabet benefits from AI monetization in ads and a robust cloud AI backlog, plus a strong cash position. Broadcom shows durable AI demand with a $73 billion AI backlog, rising hyperscaler orders, and a key role in AI chip infrastructure. With the global AI market expected to exceed $2 trillion by 2032 and a 30%+ CAGR, these three names offer durable, multi-year AI exposure across the tech stack, though valuations warrant consideration.
The piece argues the AI spending boom will persist into 2026 and beyond, highlighting Nvidia, AMD, and Broadcom as top long‑term buys. Nvidia leads AI compute with GPUs and a strong growth trajectory, though trading at a premium; AMD is narrowing the gap with rising ROCm adoption and a projected 60% CAGR in data-center revenue through 2030; Broadcom benefits from partnerships to design specialized AI chips and growing AI semiconductor revenue. The author suggests allocating about $1,000 to each stock and holding for several years to ride continued AI growth.
Taiwan Semiconductor Manufacturing beat expectations with strong Q4 results and raised its capex outlook to $52–$56 billion to expand 3nm and 5nm capacity, signaling sustained AI-demand growth that should ease supply constraints for Nvidia and Broadcom while boosting margins.
Nvidia remains the AI infrastructure leader, but its stock is highly valued and competition is rising. The article argues two other AI-chip players—Broadcom, a leading ASIC provider for energy-efficient AI inference, and AMD, which has secured large inference deals with Oracle and OpenAI and benefits from CUDA-like compatibility—could see bigger upside in the coming years, potentially outperforming Nvidia.
Mizuho Securities predicts strong AI-driven demand will boost semiconductor stocks in 2026, highlighting Nvidia, Broadcom, and Lumentum as top picks due to their roles in AI accelerators, optical networking, and advanced chips, while also noting potential growth in related sectors like wafer fabrication and memory, despite some sector weaknesses.
This week saw notable insider trading activity in companies like Nike, Under Armour, and Broadcom, despite the holiday-shortened week and market closures for New Year.