Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Broadcom Inc.

Broadcom AVGO and Cisco Systems CSCO are benefiting from strong demand for AI infrastructure, data center build-outs and an increasing cybersecurity threat landscape. Both offer high-performance networking hardware essential for connecting AI accelerators. In data centers, both companies are leveraging the next-generation AI Ethernet fabric for scalability and openness.
AI infrastructure solutions from AVGO and CSCO are being integrated into platforms provided by hyperscalers and enterprise cloud providers, including Google Cloud, Microsoft Azure and AWS. Both Broadcom and Cisco are investing in green and scalable infrastructure architectures to address the need for growing AI traffic. Both companies offer solutions that cater to core data centers, as well as edge environments.
Gartner projects AI spending to hit $1.48 trillion in 2025 and $2.02 trillion in 2026 compared with $987 billion in 2024. Both Broadcom and Cisco are well-positioned to benefit from this strong spending expectation on AI. Strong prospects have been driving performance, with shares of Broadcom and Cisco appreciating 56.2% and 20.6% year to date, respectively.
AVGO and CSCO Stock’s Performance
Image Source: Zacks Investment Research
So, Broadcom or Cisco, which is leading the charge? Let’s find out.
AVGO Rides on Strong Infrastructure Portfolio
Broadcom is benefiting from strong demand for XPUs, which are a type of application-specific integrated circuits (ASICs) necessary to train Generative AI models. Alphabet and Meta Platforms are notable users of Broadcom’s ASICs. XPUs accounted for 65% of AI revenues in the third quarter of fiscal 2025. Consolidated backlog hit $110 billion, and the company has secured more than $10 billion of orders for AI racks based on XPU demand. Broadcom expects fourth-quarter fiscal 2025 AI revenues to jump 66% year over year to $6.2 billion. The company’s deal with OpenAI to develop and deploy 10 gigawatts of custom AI accelerators is a noteworthy development.
AVGO’s networking portfolio is gaining from strong demand for Tomahawk 5 and 6 products, as well as the Jericho 4 Ethernet fabric router. Tomahawk 6 – Davisson (TH6-Davisson), the company’s third-generation Co-Packaged Optics (CPO) Ethernet switch, is now being shipped. TH6-Davisson is specifically designed for the accelerating demands of AI networking, as it delivers an unprecedented 102.4 terabits per second of optically enabled switching capacity.
Broadcom’s security offerings are a part of its broader Infrastructure Software solution that accounted for 42.5% of revenues in the third quarter of fiscal 2025. Broadcom’s focus on delivering AI-powered, proactive security to stay ahead of evolving cyber threats has been noteworthy.
CSCO Benefits From Strong Security Demand, AI Push
Cisco’s aggressive AI push and growing security dominance are driving prospects. AI Infrastructure orders from webscale customers hit $2 billion in fiscal 2025, double the management’s original expectation. The company is expanding its AI portfolio for data centers with new solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs and 400G bidirectional optics. Cisco’s security business is benefiting from strong demand for both Cisco Secure Access, Hypershield and XDR.
Cisco’s expanded partnership with NVIDIA, under which the companies plan to offer solutions that help build AI-ready data center networks, is a game-changer. Integration of Cisco Nexus switches with NVIDIA’s Spectrum-X architecture is offering low-latency, high-speed networking for AI clusters, driving enterprise AI orders. The Cisco Secure AI factory with NVIDIA provides a trusted blueprint for building secure AI-ready data centers for enterprises, sovereign cloud providers and newly emerging Neocloud providers.
An expanding portfolio bodes well for Cisco’s growth trajectory. The company recently introduced new agentic capabilities in Cisco AI Assistant, RoomOS 26 for Cisco Devices, and purpose-built integrations across Cisco devices and the Webex Suite. Cisco announced enhancements to the Webex Customer Experience portfolio, including a new AI-powered tool for supervisors. Expected to be available in early 2026, the enhancements will unify quality management across the contact center. The company is also expanding the Webex ecosystem in India and the Kingdom of Saudi Arabia.
AVGO and CSCO’s Earnings Estimate Revision Positive
The Zacks Consensus Estimate for AVGO’s fiscal 2025 earnings is pegged at $6.72 per share, up 1.7% over the past 60 days, indicating a 38% increase over fiscal 2024’s reported figure.
Broadcom Inc. Price and Consensus
The consensus mark for Cisco’s fiscal 2026 earnings has increased by a penny to $4.04 per share over the past 60 days, suggesting 6% growth over fiscal 2025’s reported figure.
Cisco Systems, Inc. Price and Consensus
Both AVGO’s and CSCO’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. Cisco’s average surprise of 3.86% is slightly better than AVGO’s surprise of 2.82%, reflecting a good quality of earnings beat on a consistent basis.
Valuation: CSCO is Cheaper Than AVGO
Both Cisco and Broadcom are overvalued, as suggested by the Value Score of C and D, respectively.
However, in terms of forward 12-month price/sales, Broadcom shares are trading at 20.18X, significantly higher than Cisco’s 4.69X.
CSCO and AVGO Valuation
Image Source: Zacks Investment Research
Conclusion
Cisco’s aggressive AI push and an expanding portfolio are expected to boost top-line growth in the near term. Broadcom’s expanding AI portfolio, along with a rich partner base, is a key catalyst. Although both companies have a stretched valuation, strong AI spending prospects bode well for them.
Cisco currently carries a Zacks Rank #2 (Buy), which makes the CSCO stock a buy as compared with Broadcom, which currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AVGO vs. CSCO: Which AI Infrastructure Stock is a Buy Right Now?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.8 billion dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 698,100,000 to 701,950,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.1%, Amazon.com Inc (Symbol: AMZN) is off about 0.9%, and Alphabet Inc (Symbol: GOOG) is higher by about 0.4%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $369.44 per share, with $482.07 as the 52 week high point — that compares with a last trade of $481.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

iShares Core S&P 500 ETF Experiences Big Inflow

Shareholders of Broadcom Inc (Symbol: AVGO) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the December 2027 covered call at the $530 strike and collect the premium based on the $50.20 bid, which annualizes to an additional 6.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away. Any upside above $530 would be lost if the stock rises there and is called away, but AVGO shares would have to climb 47.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 61.9% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Broadcom Inc, looking at the dividend history chart for AVGO below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.7% annualized dividend yield.
Below is a chart showing AVGO's trailing twelve month trading history, with the $530 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2027 covered call at the $530 strike gives good reward for the risk of having given away the upside beyond $530. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Broadcom Inc (considering the last 249 trading day closing values as well as today's price of $358.23) to be 57%. For other call options contract ideas at the various different available expirations, visit the AVGO Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Monday, the put volume among S&P 500 components was 839,395 contracts, with call volume at 2.20M, for a put:call ratio of 0.38 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
Also see:
Top Stocks Held By Nelson Peltz
Funds Holding EWUS
Top Ten Hedge Funds Holding GEND
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

YieldBoost Broadcom To 7.2% Using Options

Key Points
Core AI funds hold platform companies building and deploying AI, while spillover funds target semiconductors, data centers, cybersecurity, and power infrastructure.
Expense ratios for thematic AI ETFs range from 0.35% to 0.75%, with passive index funds typically cheaper than actively managed alternatives.
Building exposure beyond core AI requires considering concentration risk in semiconductor funds and rate sensitivity in data center REITs.
Artificial intelligence (AI) creates investment opportunities across multiple layers, from the software platforms to the chips running them and the data centers housing the hardware. Exchange-traded funds (ETFs) offer diversified exposure to these segments without requiring individual stock selection, but the category spans everything from broad AI platform funds to narrow infrastructure plays in nuclear power and quantum computing.
Two approaches dominate AI ETF construction. Core funds hold the companies directly building and deploying AI – cloud providers, software platforms, and chip designers. Spillover funds target the picks-and-shovels businesses enabling AI deployment: semiconductor manufacturers, data center landlords, cybersecurity providers, and power infrastructure. The right mix depends on whether you want concentrated exposure to AI winners or broader participation in the infrastructure buildout.
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Here is a brief overview of the best ETFs covering this powerful theme.
Core AI ETFs
Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) tracks the Indxx AI & Big Data index, providing broad global exposure across software, cloud, and mega-cap AI platforms. The passive fund carries a 0.68% expense ratio with approximately $6 billion in assets, offering diversified core exposure without overemphasizing any single AI category.
iShares Future AI & Tech ETF (NYSEMKT: ARTY) delivers similar core AI exposure from BlackRock at a lower 0.47% expense ratio. The passive fund tilts toward established technology names with fundamental screening, providing cost-conscious access to the same opportunity set as the Global X Artificial Intelligence & Technology ETF.
Roundhill Generative AI & Technology ETF (NYSEMKT: CHAT) takes an active management approach with concentrated positions in generative AI names. Launched in May 2023 with a 0.75% expense ratio, it offers options trading and suits investors wanting narrative-driven stock selection over index construction.
Semiconductor infrastructure
iShares Semiconductor ETF (NASDAQ: SOXX) and VanEck Semiconductor ETF (NASDAQ: SMH) both provide liquid exposure to chipmakers and equipment manufacturers. The iShares Semiconductor fund carries a 0.34% expense ratio while VanEck charges 0.35%.
The VanEck Semiconductor ETF concentrates heavily in its top 10 holdings – typically exceeding 70% of assets--with significant weights in Nvidia, TSMC, Broadcom, and ASML. The iShares Semiconductor ETF offers slightly broader diversification. Both are passive index funds capturing the profit engine of AI training and inference cycles.
Cybersecurity exposure
First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR) applies rules-based screening to cyber names at a 0.59% expense ratio, while Amplify Cybersecurity ETF (NYSEMKT: HACK) tracks the NASDAQ ISE Cyber Security Select Index at a 0.60% expense ratio. Both are passive funds addressing the structural budget increases for AI-era attack surfaces and automated defense. The holdings overlap significantly but construction differences create modest performance divergence.
Data center infrastructure
Pacer Data & Infrastructure Real Estate ETF (NYSEMKT: SRVR) holds data center REITs and digital infrastructure operators through a rules-based Solactive index. Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR) provides more direct data center and interconnect exposure at a 0.50% expense ratio. Both are passive funds targeting the landlord layer--racks, fiber, and powered shells. As REIT-focused funds, these ETFs carry rate sensitivity that can pressure valuations when yields rise even as fundamentals improve.
Nuclear and uranium
VanEck Uranium and Nuclear ETF (NYSEMKT: NLR) diversifies across nuclear operators, equipment manufacturers, and uranium exposure at a 0.56% expense ratio. Sprott Uranium Miners ETF (NYSEMKT: URNM), as the name implies, invests mainly in uranium miners, with a 0.75% expense ratio. Both are passive funds capturing the power infrastructure thesis.
Quantum computing
Defiance Quantum ETF (NASDAQ: QTUM) indexes quantum-adjacent computing and machine learning names at a 0.40% expense ratio. The passive fund captures exposure to companies working on quantum hardware, software, and enabling technologies as the field moves from research labs toward commercial applications. Quantum computing remains highly speculative with long development timelines, but recent advances in error correction and qubit stability suggest the technology may be approaching practical utility for specific AI and optimization problems.
The portfolio construction trade-off
One fund keeps it simple. Choose Global X Artificial Intelligence & Technology ETF for breadth or iShares Future AI & Tech ETF for lower fees. Pick the Roundhill Generative AI & Technology ETF if you prefer active concentration over indexing.
To own the full infrastructure stack supporting advanced compute, add satellites around a core holding: iShares Semiconductor ETF or VanEck Semiconductor ETF for chips, First Trust NASDAQ Cybersecurity ETF or Amplify Cybersecurity ETF for defense, Pacer Data & Infrastructure Real Estate ETF or Global X Data Center & Digital Infrastructure ETF for racks and interconnect, and VanEck Uranium and Nuclear Energy ETF or Sprott Uranium Miners ETF for power. If you want a small speculative sleeve, add Defiance Quantum ETF.
This structure captures AI's buildout across chips, racks, fiber, and kilowatts while the core holds the model builders and platforms.
Should you invest $1,000 in Global X Funds - Global X Artificial Intelligence & Technology ETF right now?
Before you buy stock in Global X Funds - Global X Artificial Intelligence & Technology ETF, consider this:
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George Budwell has positions in BlackRock, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Nvidia, Taiwan Semiconductor Manufacturing, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends BlackRock and 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.

The Best ETFs for Artificial Intelligence (AI) Exposure

Key Points
AI deployment requires data center capacity, high-speed networking, optical links, and rack integration beyond the chip layer.
Real estate investment trusts (REITs) provide dividend income, while networking suppliers benefit from non-linear scaling as cluster sizes increase.
These seven stocks cover the AI infrastruture layer beyond pure compute.
Artificial intelligence (AI) doesn't run on chips alone. It runs on the networks that connect them, the real estate that houses them, and the systems that package them. AI deployment requires data center capacity, high-speed networking, optical interconnects, and rack-scale integration. The seven stocks below capture the infrastructure layer beyond chips and graphics processing units (GPUs).
Real estate investment trusts (REITs) generate dividend income while locking in multiyear leases. Networking and component suppliers benefit from bandwidth requirements that multiply with cluster size. Custom silicon designers provide alternatives to standard GPUs while supplying the switching chips that coordinate traffic. And system integrators package components into qualified racks that reduce deployment time.
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Read on to find out more about these seven top AI stocks.
The wholesale-capacity provider
Digital Realty Trust (NYSE: DLR) owns and operates more than 300 data centers across six continents, leasing wholesale colocation space and powered shell facilities to enterprise customers and hyperscalers. The company has posted record AI-driven leasing activity and raised guidance multiple times in 2025, as hyperscalers pre-commit capacity well ahead of power-on.
The REIT structure requires 90% of taxable income to be paid as dividends. At current levels, Digital Realty Trust yields a respectable 2.72% on an annualized basis.
The global interconnection hub
Equinix (NASDAQ: EQIX) operates more than 270 data centers globally, specializing in interconnection services and colocation for enterprises, cloud providers, and network operators. The REIT is ramping up capital expenditures to $4 billion to $5 billion annually through 2029 to add AI-ready capacity, including AI-optimized sites with liquid cooling, such as a Chennai, India facility designed for high-density GPU deployments. Equinix yields a healthy 2.23% at current levels.
The Ethernet fabric specialist
Arista Networks (NYSE: ANET) designs cloud networking switches and software for data centers, specializing in high-performance ethernet. The company's 400G and 800G platforms are being deployed in AI cluster fabrics, with new Etherlink products for in-rack GPU scale-up networks. Arista captures networking spend as clusters scale beyond single cabinets, with switches that prevent network bottlenecks from slowing training runs.
The optical transceiver provider
Coherent Corp. (NYSE: COHR) manufactures lasers, optical components, and networking products, including optical transceivers for data center networks. The company supplies drivers and transceivers for 800G, 1.6T, and 400G data center interconnect links that connect distributed AI infrastructure across buildings and campuses. As training and inference span multiple facilities, Coherent's optical components generate recurring revenue from high-bandwidth connections between sites.
The fiber and cabling manufacturer
Corning (NYSE: GLW) produces specialty glass, ceramics, and optical fiber for communications networks, with optical communications representing roughly one-third of revenue. The company supplies fiber-optic cable and connectivity for AI data center builds, where longer runs, higher fiber counts per rack, and denser architectures increase content per deployment. Analysts project significant 2025 growth in Corning's Optical segment driven by AI interconnect demand.
The custom accelerator designer
Broadcom (NASDAQ: AVGO) designs semiconductors and infrastructure software for data center, networking, and wireless markets. The company designs custom AI accelerators (XPUs) for hyperscalers seeking alternatives to off-the-shelf GPUs and supplies Ethernet switching chips for AI cluster networks. AI-related revenue has surged in recent quarters, as customers build proprietary silicon and need networking chips to connect processors without bottlenecks.
The rack-scale systems integrator
Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance server and storage systems. It focuses on application-optimized, liquid-cooled rack-scale deployments. The company is shipping complete AI systems for Nvidia's newest platforms, including GB300 NVL72 rack-scale and HGX B200/B300 systems.
Its packaging, thermal engineering, and factory integration turn parts into ready-to-deploy clusters. Customers pay a premium for these pre-validated racks to compress installation from months to weeks. Super Micro faces accounting scrutiny and delayed filings, which create execution and oversight risk, even as demand for integrated AI racks accelerates.
Should you invest $1,000 in Digital Realty Trust right now?
Before you buy stock in Digital Realty Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Digital Realty Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
George Budwell has positions in Nvidia. The Motley Fool has positions in and recommends Arista Networks, Digital Realty Trust, Equinix, and Nvidia. The Motley Fool recommends Broadcom, Coherent, and Corning. 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.

7 AI Infrastructure Stocks Beyond the Chips

Key Points
IonQ has developed advanced quantum computing technology, but the industry's long-term benefits are unproven.
Taiwan Semiconductor is the leading manufacturer of most AI processors.
Broadcom just scored a major deal with OpenAI, and its artificial intelligence sales are estimated to surge 650% over the next three years.
Quantum computing could transform many industries -- including pharmaceutical discovery, materials science, artificial intelligence (AI), and cybersecurity -- as the technology becomes more efficient. Some experts believe quantum computing will be the next big technological wave, which is why startups like IonQ are getting a lot of attention from investors right now.
The company's quantum computers use trapped ions to perform computations, which could potentially offer more accurate and scalable solutions than other quantum hardware. But many estimates still put the real-world benefits of quantum computing years down the road.
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As such, I think it's better for most investors to focus their attention on artificial intelligence opportunities right now, which still have many more years of potential growth. Here are two companies that will likely be better investments than IonQ stock in the coming years.
1. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) is the manufacturing workhorse behind nearly all of the world's most advanced semiconductors, including those for AI data centers. If you look under the hood of nearly any artificial intelligence server, the processors manufactured in it are likely made by Taiwan Semiconductor, also called TSMC.
The company has spent decades developing the most advanced semiconductor manufacturing plants, essentially leaving rivals like Samsung and Intel in the dust. Making advanced chips is no easy feat, and having the equipment to do so takes billions of dollars in investments, which has given TSMC an early lead that's propelled it to about 90% of the advanced processor market.
Fortunately, sales and earnings have followed. In the company's most recent third quarter results, revenue rose by 30% to $33.1 billion, and earnings increased 39% to $2.92 per American depositary receipt (ADR). TSMC's CEO, C.C. Wei, highlighted the company's confidence in its AI opportunity on the Q3earnings call saying, "We are still very comfortable that the demand for leading edge semiconductor is real."
To top it all off, TSMC's stock is relatively well-priced compared to many of its AI peers. The company's shares have a price-to-earnings ratio of 31.5, which is nearly on par with the average P/E ratio of 31 for the S&P 500 index and far lower than the tech sector's 47 average.
2. Broadcom
Broadcom (NASDAQ: AVGO) is a leading designer of application-specific integrated circuits (ASICs) that are used in artificial intelligence and cloud computing systems, and it has become a leading choice for some AI companies' needs.
For example, ChatGPT creator OpenAI announced recently that it is partnering with Broadcom for 10 gigawatts' worth of AI accelerators by 2029. Broadcom will work with OpenAI to codevelop AI accelerators, and Broadcom will deploy AI server racks and networking systems.
The result could be billions of dollars in sales for the company, per WSJ, and it comes at a time when Broadcom's AI revenue is already booming. Management estimates that its artificial intelligence revenue will be $90 billion annually by 2027 -- a 650% increase from 2024.
AI is the better long-term play
IonQ's bet on quantum computing could eventually pay off, but right now it's a pretty big gamble. The company had just $21 million in sales in the recent quarter, compared to its $178 million net loss. With most real-world applications of quantum computing still years down the road, investors are essentially placing a bet that IonQ will benefit from quantum computing before the industry has even taken shape.
Instead, investors are likely better off putting their money toward two leading artificial intelligence companies -- Taiwan Semiconductor and Broadcom -- that are already growing sales and earnings significantly and have a foothold in the AI market. While no investment outcome is guaranteed, these two companies are already established leaders and should continue benefiting from their early AI moves for years to come.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short November 2025 $21 puts on Intel. 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.

Should You Forget IonQ and Buy 2 Artificial Intelligence (AI) Stocks Right Now?

Key Points
The Magnificent Seven stocks have outpaced the broader market since the dawn of AI, with Nvidia leading the pack.
Yet, with AI maturing and competition rising, there may be a changing of the guard over the coming decade.
Amazon has a long track record of AI expertise and will continue to ring the cash register for long-term shareholders.
The dawn of generative artificial intelligence (AI) has been something of a windfall for the Magnificent Seven stocks, as these tech titans were already well-versed in earlier forms of AI. The popular collective, made up of Meta Platforms, Apple, Amazon (NASDAQ: AMZN), Alphabet, Microsoft, Nvidia (NASDAQ: NVDA), and Tesla, ran circles around the broader market in recent years, becoming the toast of Wall Street in the process.
Nvidia has become the de facto poster child for AI thanks to its pioneering work in graphics processing units (GPUs), which provide the computational horsepower that underpins most AI models. The stock represents a significant portion of my personal portfolio, and I expect Nvidia to beat the market for the foreseeable future.
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So, you might be surprised to learn that if I could buy just one Magnificent Seven stock to hold for the next 10 years, it wouldn't be Nvidia. Here's why.
The case for Nvidia
Now, before I reveal my pick for the next decade, it's worth reviewing the case for Nvidia. And make no mistake -- there's a lot to like. After all, Nvidia is the undisputed leader in the data center GPU space, with a dominant 92% share of the market, according to IoT Analytics. Since most AI processing takes place in the data center, this is Nvidia's race to lose. Furthermore, Nvidia's annual release cadence for new AI-centric processors has put its rivals on notice that it has no plans to cede the top spot anytime soon.
That said, competition has begun to ramp up in recent months. Advanced Micro Devices recently inked a lucrative 6-gigawatt deal with OpenAI to use its Instinct MI450 series chips and rack-scale AI solutions. Broadcom, with its application-specific integrated circuits (ASICs), scored its own 10-gigawatt deal with OpenAI.
To be clear, Nvidia kicked off the proceedings with a 10-gigawatt deal and an investment of up to $100 billion in the ChatGPT creator. However, these recent developments show that even the biggest names in AI are reluctant to put all their eggs in one basket, leaving an opening for the competition.
Don't get me wrong. Nvidia became the industry leader fair and square, and I expect it to retain the crown for years to come. But a lot can happen in 10 years. And given Nvidia's stock price increase of 1,150% since early 2023, it's unlikely it will be able to duplicate that performance in the years to come.
The power of AI and more
If we've learned anything since the dawn of AI, it's that the technology has the potential to ramp up efficiency and generate productivity increases unlike anything that's been seen before. Of all the Magnificent Seven companies, one is uniquely positioned to reap the benefits of AI across its vast business empire: Amazon.
The digital retailer has long employed advanced algorithms to maintain sufficient inventory at its warehouses and distribution centers, and determine the most cost-effective delivery routes. It even uses AI-powered robots to stock shelves and prep merchandise for shipping. Generative AI takes that to the next level.
Amazon's fast-growing digital advertising business is another beneficiary of the company's AI acumen. By infusing its adtech with AI, Amazon can better match ads with its target market.
Last but not least is Amazon Web Services (AWS), the company's cloud infrastructure business. The company continues to lead the industry it pioneered and has reignited its growth by serving up generative AI systems and tools to its cloud customers, which act as a captive audience for its offerings.
Show me the money
Don't take my word for it. In the second quarter, Amazon's overall sales increased 13% year over year to $167 billion, while its earnings per share (EPS) of $1.68 jumped 33%. But even that doesn't tell the whole story. AWS grew nearly 18% year over year to $31 billion, and advertising revenue jumped 23% to nearly $16 billion.
This summer, CEO Andy Jassy provided an update, saying that Amazon had more than "1,000 generative AI services and applications in progress or built," which are a "small fraction of what we will ultimately build." Jassy believes AI agents are the next frontier, with new agents being put to work "across all our business units."
The icing on the cake
Despite all that opportunity, Amazon stock is selling for just 33 times trailing-12-month earnings, less than half the stock's three-year average and only a slight premium to a multiple of 31 for the S&P 500.
It's hardly a fair comparison, as Amazon stock has returned 656% over the past decade compared to just 231% for the S&P 500 -- which helps to illustrate why Amazon is deserving of a premium.
Given Amazon's triple-threat business, long track record of success, and appealing valuation, I believe Amazon has the potential for greater upside over the next 10 years than Nvidia.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $483,080!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,950!*
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Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
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Danny Vena has positions in Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

If I Could Buy Only 1 "Magnificent Seven" Stock Over the Next 10 Years, This Would Be It (Hint: Not Nvidia)

Key Points
Nvidia's GPUs are expected to be challenged by custom processors for AI inference tasks.
The Nvidia competitor discussed in this article is the dominant player in the custom processor market.
Broadcom has been receiving huge orders for its custom AI processors, and that's why it could become the new symbol of the AI chip industry.
There is no doubt that Nvidia has been the driving force behind the artificial intelligence (AI) revolution in the past three years with the help of its graphics processing units (GPUs). These chips have been deployed in huge numbers to power data centers that train AI models, and they are now being used for AI inference as well.
The success of Nvidia's GPUs has led to remarkable growth in its revenue and earnings in recent years. It remains the leader in the AI chip market with an estimated share of 80%, according to brokerage firm Susquehanna.
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However, there is a chance that the company's AI chip dominance could start waning, and one competitor has the potential to replace it as the new face of AI.
Shift toward AI inference helps Broadcom make a bigger dent in AI chips
Broadcom (NASDAQ: AVGO) is known for designing custom chips, called application-specific integrated circuits (ASICs), along with networking switches and components. It currently lags significantly behind Nvidia in the AI chip market. Its AI revenue of $5.2 billion in its most recent fiscal quarter was well below the $41 billion revenue generated by Nvidia in the previous quarter.
But Broadcom's AI revenue increased by 63% year over year, outpacing the 56% growth in Nvidia's data center revenue. The latter's growth is quite impressive considering its huge size, but there is a good chance that Broadcom will be able to significantly accelerate its healthy growth due to a shift in AI workload needs.
Earlier this year, Advanced Micro Devices CEO Lisa Su said that the demand for AI inference applications is outpacing the demand for AI model training. Su said that the number of purpose-built AI models for handling specific kinds of workloads in areas such as automaking, healthcare, and finance is also booming. So the need for custom AI processors designed by Broadcom is set to increase.
The company's custom processors are designed to tackle specific workloads as compared to the general-purpose function of Nvidia's GPUs. Custom AI processors not only consume less power, but they are also considered to be more powerful while performing a specific task, when compared to GPUs.
This explains why customers have been lining up to buy custom AI processors and networking chips from Broadcom. OpenAI, which relied on Nvidia to train ChatGPT three years ago, has been the latest company to partner with Broadcom.
The company will design and deploy 10 gigawatts of custom AI processors for OpenAI from 2026 to 2029. Though there has been no disclosure about the financial aspects of this deal, it is estimated that $35 billion worth of AI accelerators are typically deployed in a 1 gigawatt data center. One analyst estimates that this deal could add a total of $100 billion to Broadcom's top line during the contract period.
As such, Broadcom could see a significant expansion in its addressable market following the OpenAI deal. The chip designer reported a strong revenue backlog of $110 billion at the end of its previous fiscal quarter, a number that's well above the $60 billion in revenue that it has generated in the past year. That backlog is likely to have grown much bigger in the wake of the OpenAI deal, as well as the $10 billion contract that it landed from an unnamed client last month.
In all, Broadcom's growing backlog, the fact that it counts the likes of OpenAI, Alphabet's Google, Meta Platforms, and ByteDance as customers -- along with other customers in the company's pipeline -- clearly suggest that its status in the AI chip industry is rising. Moreover, 80% of the chips performing AI inference tasks in 2030 are expected to be ASICs, up from just 15% last year.
Broadcom is the leading player in custom AI processors, with an estimated share of 70%, so it is one of the best ways to capitalize on the huge potential of this market. Management expects to ride the custom AI processor market's growth and corner a 24% share of the overall AI chip market by 2027. That would be more than double its estimated share of 11% in 2025, suggesting that it is likely to eat into Nvidia's dominance.
Broadcom stock is expensive right now, for a reason
Broadcom stock has shot up 94% in the past year, and it is trading at an expensive 87 times earnings right now. However, the forward earnings multiple of 37 suggests that its bottom line is set to expand nicely. Consensus estimates project a 38% increase in Broadcom's earnings this year, followed by an almost identical jump in the next one.
It can sustain such impressive growth beyond the next couple of years considering the points discussed above. And its stock is undervalued taking its growth potential into account. It has a price/earnings-to-growth ratio (PEG) of just 0.55 based on its projected annual earnings increase for the next five years, according to Yahoo! Finance.
A PEG ratio is a forward-looking valuation metric calculated by dividing a company's price-to-earnings ratio by its estimated five-year annual growth rate, and a reading of less than 1 suggests that a stock is undervalued based on the potential growth. So, investors can still consider buying Broadcom since its growing stature in the AI chip market could pave the way for more upside in the long run.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. 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.

Could This Semiconductor Leader Become the New Face of Artificial Intelligence (AI)?

In today's video, I discuss recent updates impacting Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and other artificial intelligence (AI) companies. To learn more, check out the short video, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Oct. 23, 2025. The video was published on Oct. 23, 2025.
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Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $482,925!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,950!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $590,357!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 20, 2025
Jose Najarro has positions in Alphabet, Marvell Technology, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool recommends Broadcom and Marvell Technology. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Amazon AWS in Trouble After Anthropic Partners With Google Cloud?

Key Points
Broadcom has a handful of customers for its custom AI accelerator chips.
However, AI revenue still makes up only a minority of Broadcom's total.
The artificial intelligence arms race is waging on, but in reality, the only place investors are seeing any real benefits is by investing in the AI infrastructure plays. These are areas where real money is being spent, and that's where I think most investors should be picking stocks. Since the AI arms race began in 2023, the top investment pick in this space has been Nvidia.
However, other viable alternatives are popping up, including Broadcom (NASDAQ: AVGO). Broadcom's product line is quite attractive and offers a viable alternative to Nvidia's chips. But is it the smartest way to invest in AI? Let's take a look.
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Broadcom isn't just focused on AI
Broadcom is a much larger business than just AI. While Nvidia is focused on building its graphics processing units (GPUs) and the hardware and software to support them, Broadcom has multiple other business wings. Broadcom's product lineup includes mainframe hardware and software, virtual desktop software via its acquisition of VMware, cybersecurity software, and many other product lines. However, these divisions aren't driving Broadcom's growth; its AI division is.
Broadcom has two primary AI infrastructure products: connectivity switches and custom AI accelerator chips. Connectivity switches are deployed in data centers to stitch information back together after a workload has been split up to be run on different computing units. These are critical pieces of hardware for an artificial intelligence data center, but they aren't used in as large quantities as some of Broadcom's custom AI accelerators.
The chips, which Broadcom calls XPUs, are an alternative to Nvidia's GPUs. Currently, Nvidia's GPUs are the undisputed king of accelerated computing, as they are highly flexible for multiple workloads. However, most AI data centers only see one type of workload, which means this flexibility is a wasted cost. Still, the AI hyperscalers aren't running their AI models the same way, so this flexibility is needed, even if it drives up costs for the industry.
Broadcom solved this problem by directly partnering with AI hyperscalers to design a chip with the specific workload in mind. This allows Broadcom to produce more powerful and cheaper chips for its clients, which is a win-win. Not every company has signed on to this approach, so Nvidia will still be a dominant force in this industry, but Broadcom could take more market share as more AI companies deploy Broadcom's chips.
OpenAI and Broadcom recently announced a 10-gigawatt deal, which showcases that Broadcom's chips are starting to become more popular. Broadcom doesn't normally announce who its clients are, but many have linked its other customers to Alphabet, Meta Platforms, and ByteDance, TikTok's parent company. However, there's also a mystery fifth customer that placed a $10 billion order for chips that many assumed to be OpenAI, which turned out to be incorrect.
As the AI arms race heats up, limited energy resources will require companies to turn to more powerful solutions at cheaper price points so that the capital pool can be spent in other places, such as building electricity capacity. This bodes well for Broadcom, but is the stock a top one to buy now?
Broadcom's stock isn't cheap
The market is well aware of Broadcom's recent success and has bid the stock up as a result. It now trades for over 50 times forward earnings despite growing at a relatively slow 22% rate.
This makes Broadcom's stock seem speculative, but that narrative could flip in 2026. Broadcom generated $16 billion in revenue during the third quarter of its fiscal 2025 (ended Aug. 3), with $5.2 billion coming from its AI product lineup. AI revenue increased at a 63% pace, so this is clearly the growth driver for the company. As Broadcom's business grows to become further concentrated into AI, this could accelerate its companywide growth rate and justify its current premium valuation.
Broadcom is a smart way to invest in the AI arms race, as it's going to benefit from a strategy shift from some of the biggest spenders in this space. This makes it an excellent stock pick, and I think it could outperform its peers significantly over the next few years.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. 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.

Indicator	TTM Median
P/E	105.55 28.98
Price/Sales	19.32 2.58
P/B	16.64 2.76
P/FCF	57.41 24.31

Indicator	TTM Median
ROE	14.75 15.33
ROA	5.98 6.66
ROI	7.48 9.73
Net Worth	1.19K 0.98
Quick Ratio	0.91 1.53
Current Ratio	1.00 1.84

Indicator	TTM Median
Net Profit Margin	18.47 9.71
Operating Margin	32.35 11.07
Gross Margin	64.70 50.00
Return on tangible equity	0.00 27.59

Indicator	TTM Median
EPS	1.33 0.24
EPS Forecast	1.35 0.19
Revenue	14.92B 73.00M
Gross Profit	10.15B —
EBITDA	8.43B —

Broadcom Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue