Key Points
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Broadcom has an enormous opportunity with its custom AI chips.
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TSMC’s lead in semiconductor manufacturing continues to widen, and the Stock is still relatively cheap.
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Amazon’s Stock is undervalued, and its cloud revenue growth should continue to accelerate.
- 10 stocks we like better than Broadcom ›
Just because a Stock has gone up in value significantly since you bought it doesn’t mean you shouldn’t add to that position. Let’s look at three tech stocks you may already have in your portfolio that you might want to double up on right now.
Broadcom
Broadcom (NASDAQ: AVGO) shares had a strong 2025, but they dipped sharply in December, creating what could be a great buying opportunity. Meanwhile, the company’s outlooks for its fiscal 2026 and 2027 just keep getting better.
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This looks like it’s going to be a big year for Broadcom’s application-specific integrated circuits (ASICs), which are specialized chips designed for highly specific workloads. AI ASICs are becoming increasingly popular following the success Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has seen with the Tensor Processing Units (TPUs) that Broadcom helped it develop.
Alphabet is starting to let its customers deploy TPUs for their AI workloads, which helps Broadcom. For example, Anthropic has ordered $21 billion worth of TPUs from Broadcom to be delivered this year. At the same time, other customers, including OpenAI, have been working with Broadcom to develop their own custom AI chips.
This is an enormous opportunity for Broadcom. Citigroup analysts have estimated that the company’s AI revenue could more than double this fiscal year to over $50 billion, and then double again in fiscal 2027. Broadcom generated total revenue of just under $64 billion this fiscal year, so this is a Stock to keep buying ahead of this expected growth.
Image source: Getty Images.
Taiwan Semiconductor Manufacturing
Though it’s trading near an all-time high, the outlook for Taiwan Semiconductor Manufacturing (NYSE: TSM) just keeps improving. trading at a forward price-to-earnings (P/E) ratio of around 20, based on analysts’ estimates for 2026, and a price/earnings-to-growth (PEG) ratio of less than 0.8, the Stock is still attractively valued. Stocks with positive PEGs below 1 are typically considered undervalued.
TSMC is the clear leader in manufacturing advanced chips, and it is currently the only company that can do this at scale. Competitors have struggled to achieve the high yields (low defect rates) that are necessary to profitably make high-end graphics processing units (GPUs) and AI ASICs, leaving TSMC a virtual monopoly in the space. This has made it a key partner to chip designers and also given it strong pricing power.
Meanwhile, the company’s lead just grew wider. Yields for its newest 2-nanometer (nm) technology have reportedly exceeded expectations. That led management to expedite the construction of a new fab that will move to 1.4nm production. It already had plans to introduce 1.6nm processing at the fabs it is currently building in Arizona. With chip demand soaring and TSMC’s technological lead increasing, now would be a good time to double up on the Stock.
Amazon
While Amazon (NASDAQ: AMZN) isn’t far off from its all-time highs, the Stock hasn’t done much over the past few years. However, it has some potential catalysts ahead that could make this an opportune moment to add shares.
The biggest of those would be accelerating growth from Amazon Web Services (AWS). It’s the company’s fastest-growing and most profitable segment, but its revenue growth has trailed that of its cloud computing peers. However, revenue growth started to accelerate last quarter, hitting 20%, and that could just be the start. The data center that it built exclusively for Anthropic using its custom Trainium2 chips is still ramping up, and Amazon is spending aggressively to increase capacity to meet surging AI-related demand. It also recently signed a $38 billion deal with OpenAI.
Meanwhile, the company’s e-commerce business is already seeing strong benefits to its operating leverage from its AI and robotic initiatives. If the economy improves in 2026, the segment’s profitability should really jump.
The Stock is also cheap on a historical basis, trading at a forward P/E ratio of less than 24. That’s also a much lower forward P/E ratio than retail peers like Walmart (37.5) and Costco (39). Both of them are also growing their top and bottom lines at slower paces than Amazon’s retail operations.
Considering its inexpensive valuation and its opportunities, this looks like a good time to double up on Amazon Stock.
Should you buy Stock in Broadcom right now?
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Citigroup is an advertising partner of Motley Fool Money. Geoffrey Seiler has positions in Alphabet, Amazon, and Broadcom. The Motley Fool has positions in and recommends Alphabet, Amazon, Costco Wholesale, Taiwan Semiconductor Manufacturing, and Walmart. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
