Key Points
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Motley Fool Senior Analyst Asit Sharma predicts that smaller semiconductor stocks will outperform in the coming years, but megacap chipmakers are also worthy additions to portfolios.
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Nvidia is projected to maintain leadership in AI infrastructure, with revenue projected to grow from $5.9 billion in fiscal Q3 2023 to $57 billion by fiscal Q3 2026.
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Broadcom’s AI revenue is forecasted to jump from $20 billion in fiscal 2025 to over $50 billion in fiscal 2026, and $100 billion in fiscal 2027.
According to The Motley Fool’s 2026 AI Investor Outlook report, 9 out of 10 investors plan to buy or hold artificial intelligence stocks in 2026. Nvidia (NASDAQ: NVDA) is positioned as a leading company, with its graphics processing units (GPUs) being central to AI workloads. Revenue from its data center networking segment experienced a 162% increase, reaching $8.2 billion. The company’s CUDA software platform has entrenched it as the go-to choice for AI development.
Meanwhile, Broadcom (NASDAQ: AVGO) is expanding its role in custom AI chips. As data centers shift to ASIC designs for efficiency, Broadcom’s agreements with hyperscalers like Alphabet underline its growth potential. Analysts at Citigroup anticipate Broadcom’s AI revenue will soar as demand increases, making it a critical stock for investors focused on the AI chip market.
