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.

Key Points
Stock splits have enjoyed a resurgence in recent years, spurred by a bull market and robust stock price gains.
Broadcom and AppLovin have generated spectacular gains for investors, leading to speculation they may enact stock splits.
Both are selling for attractive valuations.
Stock splits were commonplace in the late 1990s, but the practice fell out of favor and faded into near obscurity. In recent years, however, stock splits have experienced a resurgence as a means to keep popular and high-flying stocks accessible to the masses.
Furthermore, the advent of artificial intelligence (AI) and strong corporate results have fueled a robust bull market that just surpassed its third anniversary, driving share prices to highs not seen in years. Don't take my word for it: The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have all hit record highs in recent months, and there's likely more to come.
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Ryan Detrick, chief market strategist at financial services company Carson Group, has analyzed the data, which shows that bull markets lasting longer than three years continue to climb, lasting eight years, on average, with even the shortest lasting five years.
With that as a backdrop, let's look at two unstoppable stocks that have soared over the past two years but are still buys right now, according to Wall Street.
1. Broadcom: Up 337%
The AI revolution continues to gain steam, but is beginning to expand its reach. Graphics processing units (GPUs) were the early chip of choice to power the large language models (LLMs) that underpin AI. However, as the use of AI continues to evolve, so too do the needs of its users. For example, while GPUs are unrivaled in terms of speed and flexibility, this comes at a cost of high energy consumption.
That's where Broadcom (NASDAQ: AVGO) comes in. The company provides application-specific integrated circuits (ASICs) that are being hailed as a viable alternative to power-hungry GPUs. ASICs are specialized semiconductors that can be customized to be highly efficient when performing a specific task -- hence the name -- and therefore be more energy efficient for those use cases.
Broadcom recently forged a multibillion-dollar deal with ChatGPT creator OpenAI to supply 10 gigawatts of ASICs over the next four years. This could be just the beginning, as the company is "deeply engaged" with other hyperscalers to supply them with these specialized chips. In all, Broadcom believes its AI opportunity will climb to between $60 billion and $90 billion by 2027 from its existing customers, and new agreements could drive that range higher.
Broadcom keeps its customer list close to the vest, but is believed to supply specialized processors to some of the biggest names in technology, including Alphabet's Google, Meta Platforms, and TikTok parent ByteDance.
Of the 47 analysts who offered an opinion thus far in December, 94% rate the company a buy or strong buy, and none recommend selling.
At more than $400 a share, Broadcom could be ripe for a stock split, especially if it continues to rise at its current rate.
At 32 times next year's expected earnings, Broadcom might seem pricey. However, the most commonly used valuation metrics struggle to value high-growth stocks. The more appropriate price/earnings-to-growth (PEG) ratio clocks in at 0.43, when any number less than 1 suggests an undervalued stock.
2. AppLovin: Up 1,780%
Once upon a time, advertising in software and apps was fraught with uncertainty, as marketers had no way to know for certain if they were getting any bang for their buck. AppLovin (NASDAQ: APP) was there to answer the call. The adtech company offers a suite of tools to help app developers market and monetize their apps. AppLovin is expanding its offerings, creating a new generation of solutions designed specifically for e-commerce platforms.
The company offers a number of cutting-edge tools that are leading the industry. Its Axon self-service ad platform enables users to automate and manage their creative campaigns, while AppLovin's Max supply-side platform helps connect publishers and advertisers in real time. The company's success was marked by its recent admission to the S&P 500 and a stock price surge of more than 1,700% over the past two years.
This combination is reaping big rewards and fueling meteoric growth. In the third quarter, revenue of $1.4 billion grew 68% year over year, while its diluted earnings per share (EPS) of $2.47 surged 96%. The results were driven higher by net revenue per installation, which increased 75%. Perhaps more telling was the $1.05 billion in operating cash flow and $1.05 billion in free cash flow AppLovin generated during the quarter.
Wall Street is clearly bullish regarding the company's future prospects. Of the 27 analysts who offered an opinion thus far in December, 81% rate the company a buy or strong buy, and only one maintains a sell rec.
AppLovin stock currently sells for more than $700 per share, making it ripe for a split, particularly in light of the company's consistent mid-double-digit growth.
Like Broadcom, AppLovin defies the more common valuation metrics, selling for more than 50 times next year's expected earnings. However, its PEG ratio of 0.63 suggests the stock is attractively priced for a company growing its revenue and profits so quickly.
Should you buy stock 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 $513,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,908!*
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Danny Vena, CPA has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. 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.

Possible Stock Splits in 2026: 2 Unstoppable Stocks Up 337% and 1,780% in 2 Years to Buy Now, According to Wall Street

Key Points
Broadcom turned in strong fiscal Q4 results and upbeat guidance.
However, there is some worry that customers may eventually begin to take more design work in-house.
That said, the company has a massive opportunity in front of it over the next few years.
Broadcom (NASDAQ: AVGO) ended its fiscal year riding strong momentum from increasing artificial intelligence (AI) infrastructure demand. However, the stock slipped after CEO Hock Tan clumsily answered a question about customer-owned tooling, which is the risk that customers would take the bulk of the design work in-house and forgo using Broadcom.
Let's take a closer look at Broadcom's recent results to see if this dip is a buying opportunity.
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Strong momentum continues
Both Broadcom's networking and custom AI chip businesses performed well to close out its fiscal year. It saw its fiscal Q4 AI revenue soar 74% to $6.5 billion and projected that it would double in fiscal Q1 to $8.2 billion. Meanwhile, it noted a $73 billion AI backlog consisting of custom AI chips and networking components that it will fulfill over the next 18 months.
The company also announced that it had acquired a fifth custom AI chip customer that has placed an order for $1 billion worth of chips for delivery in late 2026. It also revealed that Anthropic was its mystery $10 billion fourth customer, although it will be purchasing Alphabet's tensor processing units (TPUs). Anthropic has also placed a second $11 billion order for late 2026.
However, when asked about the risk of customers taking design work in-house, Tan's answer may have spooked investors. He touted the benefits of custom ASICs (application-specific integrated circuits) over off-the-shelf graphic processing units (GPUs), but then noted that GPUs' rapid evolution was a reason customers needed to stick with Broadcom to avoid being left behind. That's a bit of a tightrope the company is trying to walk.
Turning to its results, Broadcom's overall revenue climbed 28% year over year to $18.02 billion in the quarter, while adjusted earnings per share (EPS) jumped 37% to $1.95. The results topped analyst expectations for adjusted EPS of $1.86 on revenue of $17.49 billion, as compiled by LSEG. Adjusted EBITDA, meanwhile, grew by 34% year over year to $12.2 billion.
Total semiconductor solutions revenue increased by 35% year over year to $11.1 billion. Its non-AI chip revenue remains sluggish, up just 2% in the quarter. Infrastructure software revenue, meanwhile, jumped by 19% to $6.9 billion.
Broadcom continues to generate strong cash flow, with cash flow from operations of $7.7 billion and free cash flow of $7.5 billion. It ended the quarter with nearly $16.2 billion in cash and equivalents and $65.1 billion in debt, which comes from its $69 billion acquisition of VMware in 2023.
Looking ahead, Broadcom forecasts fiscal Q1 revenue to grow by 28% to $19.1 billion, with semiconductor revenue soaring 50% to $12.3 billion and infrastructure software revenue edging up 2% to $6.8 billion. It expects adjusted EBITDA to be approximately 67% of revenue, or about $12.8 billion.
Is it time to buy the dip?
Broadcom has an absolutely huge opportunity in front of it, as more and more hyperscaler customers turn to it to help them design their own custom AI ASICs. Much of its ASIC revenue is currently coming from Alphabet, but it is broadening, and it has a massive deal with OpenAI that is expected to begin in 2027.
Now there is a risk with Alphabet, as the company's technology is furthest along, and there have been reports that it has been working with MediaTek on a TPU variant. However, there really isn't much chance of a switch until at least 2028, and even then, that's an uncertainty.
From a valuation perspective, Broadcom stock now trades at a forward price-to-earnings (P/E) ratio of about 39 times. While that is not cheap, the company is poised to see explosive growth over the next few years. With the ASICs deals it has in place, it could easily see its revenue double in the next few years.
While Broadcom is not without risks, I think this dip is a solid opportunity to add some shares heading into the new year.
Should you buy stock 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 $513,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,908!*
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*Stock Advisor returns as of December 15, 2025.
Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. 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.

Broadcom's Momentum Continues, but Stock Slides. Is It Time to Buy the Stock?

Key Points
Broadcom’s pullback reflects broader weakness in AI-related stocks as sentiment cools.
The company's margins are lower for its AI business.
Shares of Broadcom (NASDAQ: AVGO) fell on Monday, finishing the day down 5.6%. The slide came as the S&P 500 and Nasdaq Composite lost 0.2% and 0.6%, respectively.
Broadcom stock fell today, along with much of the artificial intelligence (AI) market, as investors continue to rotate out of the sector following earnings from both Broadcom itself and fellow tech giant Oracle.
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Record earnings weren't enough to calm market nerves
Despite reporting record sales and net income as AI sales soar, investors were disappointed by the impact its AI is having on margins. During the company'searnings call CEO Hock Tan said that its AI business has lower gross margins than its other segments, and as AI sales become a larger part of its total revenue mix, overall margins will be negatively impacted moving forward.
Given Broadcom's headline numbers, these issues would mostly be overlooked during a less fraught time in the market, but as anxiety grows over an AI bubble, investors are looking for any signs of weakness. Especially given that Broadcom's earnings were released just a day after Oracle's own report, showing its AI-related capital expenditures are ballooning.
Broadcom needs demand for AI to remain white hot. I'm not confident enough that it will to recommend Broadcom stock at this price.
Should you buy stock 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 $513,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,908!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of December 15, 2025.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. 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.

Why Broadcom Stock Sank 5.6% Today

The S&P 500 (SNPINDEX:^GSPC) slipped 0.16% to 6,816.34, the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.59% to 23,057.41 on continued AI and tech weakness, and the Dow Jones Industrial Average (DJINDEX: ^DJI) eased 0.09% to 48,416.57 in cautious, data-focused trading.
Market movers
Kyverna Therapeutics (NASDAQ:KYTX) soared more than 30% after positive Phase 2 data in stiff person syndrome, bucking broader Nasdaq weakness. In defensives, Hershey (NYSE:HSY) gained on an analyst upgrade highlighting EPS visibility, while Costco (NASDAQ:COST) lagged after a downgrade to Sell on softening fundamentals.
What this means for investors
Markets slowed ahead of a busy stretch of economic data that could shift the rate outlook for next year. With the S&P 500 unable to gain traction, incoming data now carries more weight in shaping how investors price the path of rate cuts and where leadership settles next.
Pressure in AI and technology stocks continued to weigh on the Nasdaq Composite. The pullback reflects a growing unease with valuations that had assumed uninterrupted momentum. A price-target cut for Broadcom added to that caution and nudged investors toward companies where earnings are easier to underwrite.
Hedge funds continued to add to U.S. equity positions for a sixth straight week. That support was offset by soft signals out of China and continued weakness in Asian tech stocks. Investors now shift their focus to Tuesday’s payrolls report for a clearer read on where the market goes next.
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When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 965%* — a market-crushing outperformance compared to 193% for the S&P 500.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Hershey. 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.

Stock Market Today, Dec. 15: U.S Stocks Ease as Investors Wait for Rate Clarity

Broadcom (NASDAQ:AVGO), designer and supplier of semiconductor devices and infrastructure software solutions worldwide, closed Monday’s session at $339.86, down 5.6%. Trading volume reached 55.8 million shares, which is approximately 126% above its three-month average of 24.7 million shares.
How the markets moved today
Monday’s trading featured renewed pressure on Broadcom after recent earnings, with investors focusing on AI-driven revenue growth versus margin pressure and valuation. The S&P 500 (SNPINDEX:^GSPC) slipped 0.16% to finish at 6,816, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.59% to close at 23,057.
Rivals Qualcomm and Nvidia both gained modestly, underscoring how competition and shifting sentiment across the chipmaking industry are shaping expectations for Broadcom’s AI chip demand and profitability.
What this means for investors
Broadcom shares continued their post-earnings slide from Friday, as Wall Street worried over management's mention of lower AI margins. Although Broadcom's projected first-quarter revenue of $19.1 billion exceeded estimates, management guided for a 100-basis-point decline in gross margin due to lower margins from its AI systems. As the tech industry hurtles toward an AI-powered world, these margin concerns reinforced investor debate over growth quality versus profitability.
While Broadcom's earnings and guidance were satisfactory -- most analysts increased their price targets -- the company was priced for perfection at 72 times free cash flow before Thursday's earnings and simply didn't meet these flawless expectations. Ultimately, the launch of a new AI accelerator by Qualcomm and ongoing competition with Nvidia create an intensifying AI chip rivalry, which will keep Broadcom's stock volatile.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 965%* — a market-crushing outperformance compared to 193% for the S&P 500.
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Josh Kohn-Lindquist has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Qualcomm. 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.

Stock Market Today, Dec. 15: Broadcom Slides After AI Margin Concerns Weigh on Stock

Despite exceeding earnings expectations, Broadcom AVGO and Oracle ORCL stock have now fallen more than 15% since their much-anticipated quarterly results last week.
The selloff comes as investors have been spooked by rising costs, margin pressures, and concerns about their AI-related spending, although these tech giants have solid balance sheets.
While both companies are deeply tied to AI infrastructure, which has been the hottest trade of the year, the market is now scrutinizing whether their increased spending on data centers and AI clusters will actually deliver profitable returns.
Image Source: Zacks Investment Research
Broadcom’s Margin Warning & Lofty Expectations
Reporting blockbuster results for its fiscal fourth quarter last Thursday, Broadcom’s quarterly sales were up 28% to $18.01 billion, with EPS soaring 37% to $1.95 compared to $1.42 per share in the comparative quarter. Broadcom also beat consensus sales and earnings estimates by 2.94% and 4.28% respectively.
However, considering Broadcom stock had vastly outperformed the broader market going into its Q4 report, this wasn’t enough to satisfy investors' lofty appetite, especially with the chip giant warning that costly infrastructure buildouts would lower gross margins despite its surging AI sales. It’s noteworthy that AI now accounts for more than half of Broadcom’s semiconductor revenue, with the company highlighting that AI semiconductor revenue spiked 74% year over year.
Broadcom has not disclosed a specific amount for its anticipated capital expenditures on AI infrastructure, and its trailing 12-month CapEx of $623 million has been relatively consistent with historical averages while being far below the tens of billions that Oracle and Nvidia NVDA plan to spend. Still, the lack of CapEx guidance also led to the market’s disappointment, even with Broadcom having lucrative multi-billion dollar contracts with AI research and development companies Anthropic and OpenAI.
Image Source: Zacks Investment Research
Oracle’s Revenue Miss & Debt-Fueled AI Spending
Posting mixed results for its fiscal second quarter last Wednesday, Oracle’s earnings climbed 54% year over year to $2.26 per share and blasted expectations of $1.63 by 38%. That said, Q2 sales of $16.05 billion missed estimates of $16.14 billion despite increasing 14% from $14.05 billion a year ago.
Oracle’s revenue shortfall has raised some doubts about execution, and this was compounded by the announcement that its CapEx will be about $15 billion higher than initially expected next year at around $50 billion. Although Oracle has strong cloud and AI deal pipelines, investors are starting to question whether the spending spree is sustainable and if the debt financing will have a future impact on profitability.
Image Source: Zacks Investment Research
Monitoring Broadcom & Oracle’s Valuation
With Broadcom’s margin pressure warning and Oracle’s aggressive spending overshadowing their favorable near-term revenue guidance and expansive growth trajectories, valuations are once again the focus as investor sentiment shifts.
Bubble fears are not overly concerning regarding their forward P/E multiples, and the pullback has perhaps served as a healthy correction. To that point, Broadcom’s 39X and Oracle’s 27X are roughly on par with their respective Zacks industry averages after recently hitting decade-long highs of 68X and 57X forward earnings, respectively.
In terms of price-to-forward sales, their valuations are more worrisome, especially for Broadcom at 26X compared to its Zacks Electronics-Semiconductors Industry average of 5X. In comparison, Oracle’s forward P/S multiple of 8X is not a far stretch from its Zacks Computer-Software Industry average of 4X.
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Optimistically, AVGO and ORCL have hovered near the preferred PEG ratio of less than 1, which still suggests they are on the cusp of being undervalued relative to their growth rates, with Broadcom currently beneath this mark.
Image Source: Zacks Investment Research
Bottom Line
In the grand scheme of things, investors will still be compelled at how AI is fueling Broadcom and Oracle’s growth. At the same time, concerns about whether they will be able to sustain their operational efficiency are understandable, considering the high cost of AI infrastructure expansion. For now, Broadcom and Oracle stock both land a Zacks Rank #3 (Hold).
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Buy the Drop in Broadcom or Oracle Stock After Earnings?

Headlines these days highlight pure-play quantum computing startups racing to build fault-tolerant machines. But history suggests that the earliest and most durable value creation in emerging compute paradigms rarely accrues to the system builders alone. In the near-to-medium term, quantum workloads will be highly dependent on classical infrastructure, advanced semiconductor manufacturing, precision test and packaging and secure enterprise-grade IT environments.
For investors, this makes 2026 less about picking a single quantum winner and more about identifying the enablers positioned to capture real revenues as quantum transitions from laboratory experiments to early commercial deployment. Names to watch include Advanced Micro Devices AMD, Teradyne TER, Broadcom AVGO, Applied Materials AMAT and Oracle ORCL.
Quantum in Broader Tech
In 2026, investors should also watch companies whose core businesses are not quantum computers per se, but provide the technologies that make quantum progress possible. These include essential enablers like Graphics Processing Units (GPUs) and High-Performance Computing (HPC) engines, semiconductor test and packaging equipment, materials and fabrication specialists and vendors of quantum-safe security. At the same time, progress in qubit fidelity and scaling is driving demand for sophisticated test, measurement and automation systems as well as advanced materials, deposition and etching technologies that can deliver repeatable, low-defect fabrication at scale.
One Grand View Research analysis projects the quantum computing market to grow from about $1.4 billion in 2024 to over $4.2 billion by 2030, representing a CAGR of 20.5% through the end of the decade. While the overall industry prospect is extremely upbeat, a separate report specifically on post-quantum cryptography (PQC) forecasts that the global PQC market will expand from $0.42 billion in 2025 to $2.84 billion by 2030, at a CAGR of 46%. The broader quantum high-performance computing (HPC) market — essential for hybrid classical–quantum workloads — is also expected to scale significantly.
5 Stocks to Watch
Advanced Micro Devices: It has announced a strategic partnership with IBM to develop quantum-centric supercomputing architectures that integrate quantum computers with classical high-performance computing (HPC) technologies such as CPUs, GPUs and Field-Programmable Gate Arrays (FPGAs). AMD and IBM are co-designing proof-of-concept systems that link IBM’s quantum systems with AMD’s HPC and AI accelerators to explore hybrid workflows where classical and quantum components work together.
Advanced Micro Devices, a Zacks Rank #3 (Hold) stock, is expected to report 2026 earnings growth of 26.8% on revenue growth of 57.8%.
Advanced Micro Devices, Inc. Price and EPS Surprise
Teradyne: It has announced an agreement to acquire Quantifi Photonics, a specialist in testing photonic integrated circuits (PICs), co-packaged optics and related optical modules. This is relevant because photonic technologies and co-packaged optics (CPO) are increasingly important not just for classical HPC and data centers, but also for next-generation quantum and hybrid systems that use optical links for ultra-high data transfer.
TER, a Zacks Rank #2 (Buy) stock, is expected to report 2026 earnings growth of 44.6% on revenue growth of 22%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teradyne, Inc. Price and EPS Surprise
Broadcom: It has launched its Brocade Gen 8 Fibre Channel networking platforms with embedded quantum-safe encryption and post-quantum cryptography algorithms designed to help secure enterprise storage networks and critical infrastructure against emerging quantum-era threats. This is a sign that infrastructure vendors are beginning to monetize demand for quantum-resilient security capabilities ahead of large-scale quantum advantage.
AVGO, a Zacks Rank #3 stock, is expected to report fiscal 2026 (October 2026 ending) earnings growth of 34.9% on revenue growth of 34.1%.
Broadcom Inc. Price and EPS Surprise
Applied Materials: It sits at the materials and process layer, crucial for advancing quantum hardware fabrication. Through collaborations like its partnership with photonic quantum computing leader Xanadu to develop scalable high-volume fabrication processes for superconducting sensors and strategic investment and joint road-mapping with qubit developer Qolab, Applied Materials brings advanced materials engineering expertise into core aspects of quantum device manufacturing.
AMAT, a Zacks Rank #3 stock, is expected to report fiscal 2026 (October 2026 ending) earnings growth of 1.3% on revenue growth of 2%.
Applied Materials, Inc. Price and EPS Surprise
Oracle: Enterprise cloud and security players such as Oracle are teaming with quantum-security specialists to offer advanced, government-grade protections and hybrid deployment models. Oracle Cloud Infrastructure is being used as the host platform for a post-quantum cryptography enterprise VPN developed by American Binary.
Oracle has also launched the Oracle Defense Ecosystem, a program to foster innovation in defense and government technologies. As part of this initiative, the quantum-safe encryption company Arqit Quantum Inc. was selected as an ecosystem member, enabling tighter collaboration on secure infrastructure solutions that anticipate quantum threats to conventional cryptography.
ORCL, a Zacks Rank #3 stock, is expected to report fiscal 2026 (May 2026 ending) earnings growth of 15.4% on revenue growth of 16.6%.
Oracle Corporation Price and EPS Surprise
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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.

Quantum Computing Enablers to Win in 2026: AMD, ORCL & More

Key Points
Shares of Broadcom sank last week despite a positive earnings report.
A lofty valuation may be to blame.
Broadcom's AI revenue is soaring, but investors may be concerned about the sustainability of the AI boom.
Shares of Broadcom (NASDAQ: AVGO) have been soaring this year as the semiconductor company scored major AI chip wins, but investor sentiment shifted hard last week. Broadcom stock dropped by more than 11% on Friday in reaction to the company's report for the fourth quarter of fiscal 2025.
Broadcom's results and guidance were stellar. Revenue surged 28% year over year, adjusted EPS increased 37%, and the company forecasted strong sequential growth in the first quarter of fiscal 2026. Revenue and earnings exceeded analysts' expectations, and AI semiconductor revenue increased by 74%. In the first quarter, Broadcom expects AI revenue to more than double.
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Broadcom recently struck a deal with OpenAI for custom AI chips, and it's a partner to Alphabet for its TPUs as the tech giant pursues a new strategy of selling its AI chips to third-party customers. Broadcom ended the quarter with an AI-related backlog of $73 billion, nearly half of the company's total backlog.
So why did Broadcom stock sink?
One potential explanation that emerged last week for Broadcom's wipeout on Friday despite its solid results was a forecasted dip in gross margin for the first quarter. Broadcom's management noted in theearnings callthat the company's gross margin would decline by around one percentage point sequentially in the first quarter, largely due to a higher mix of AI revenue. This implies that Broadcom's AI business is somewhat less lucrative than the company's other lines of business.
While the fact that Broadcom's AI business carries lower gross margins is notable, a one percentage point decline in the overall gross margin is not particularly meaningful. The more likely culprit for Broadcom's weak stock performance last week is something much simpler: A valuation that's well into the stratosphere.
Broadcom was valued at approximately $1.6 trillion as of Monday morning. Analysts expect the company to report revenue of just under $96 billion in fiscal 2026, along with adjusted earnings of approximately $10 per share. Growth is expected to be robust, thanks to booming demand for AI chips.
Based on those estimates, the stock trades for nearly 17 times forward sales and over 34 times forward adjusted earnings. Broadcom is incredible profitable, converting more than half of its revenue into adjusted net income in the fourth quarter of 2025. Broadcom's GAAP operating margin has more than doubled since 2020 to over 40%.
Investors aren't buying the AI growth story
Broadcom stock appears to be richly valued relative to sales, although the company's sky-high profit margins provide some justification. With shares tumbling, one of two things, or some combination of them, is likely true. Either investors don't believe Broadcom's AI growth will hold up, or they don't believe Broadcom's incredible profit margins are sustainable.
For the time being, Broadcom's AI revenue will continue to boom. The question is: How long will the party go on? A mega-deal with OpenAI is a major component of Broadcom's growth story, but OpenAI has made massive commitments that will require extensive fundraising and revenue growth to fulfill. With OpenAI facing intense competition, it's hard to predict how any of its deals will ultimately work out.
If predictions about an AI bubble prove accurate, demand for custom AI chips could plummet, and AI start-ups could fail en masse. Under that scenario, Broadcom's AI growth would likely unwind rapidly.
Broadcom is riding the AI wave, with its stock more than doubling since April. However, with the company's valuation reaching uncomfortable levels just as fears about an AI bubble intensify, investors are starting to pull back. While Broadcom is certainly well-positioned for the AI boom, the stock may struggle under the weight of its lofty valuation.
Should you invest $1,000 in Broadcom right now?
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. 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.

Here's The Real Reason Why Broadcom Stock Tumbled Last Week

Key Points
There are only 12 investing days left in 2025.
Now is a great time to load up on stocks that may win next year -- and over time.
Soon, it will be countdown time, noting one by one the last minutes of 2025. But today, we can start early, counting down the last 12 investment days until the new year. The stock market will be closed on Dec. 25 for Christmas Day and opens for partial sessions on Dec. 24 and Dec. 31. What should you do during this countdown? Consider possible stocks, companies with great long-term prospects, that you might add to your portfolio as the year wraps up.
Whether the bull market continues its rush higher or faces tough times, these players could help you deliver a win over the long run. Here are my 12 top stocks to buy during these 12 days of investing before 2026.
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1. Apple
Apple (NASDAQ: AAPL) is on track for an 11% gain for the year -- modest, considering the explosive performance of most artificial intelligence (AI) stocks. The company has progressively launched AI across its products and could be in the early days of its AI growth story.
On top of this, Apple has a solid moat, or competitive advantage, thanks to its strong brand -- fans are willing to wait for the latest iPhone update, for example, rather than switching to a rival product. These points, along with a solid services business, could keep revenue climbing.
2. Costco
Costco (NASDAQ: COST) offers investors an opportunity right now as it's trading for 43x forward earnings estimates, down from more than 58x earlier this year. Today's level still isn't dirt cheap, but it's very reasonable for a company with such a strong business model and track record of growth.
The warehouse giant makes most of its profit through membership fees -- and renewal rates are generally high, at more than 90% in the U.S. and Canada. Costco also may thrive in any economic environment due to its low prices on essentials such as food and gas.
3. Carnival
Carnival (NYSE: CCL) (NYSE: CUK) demonstrated that it could make it through tough times and go on to win. The world's biggest cruise operator built up a wall of debt during early pandemic days when cruising halted -- since, though, it's been progressively paying down debt, it's returned to profit, and revenue and bookings have reached record levels.
The company's recovery efforts -- such as operating only fuel-efficient ships -- should support earnings growth moving forward, too. Today, Carnival is a great buy at only 11x forward earnings estimates.
4. Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) is the global leader in robotic surgery thanks to its Da Vinci platform. Surgeons around the world have trained on the system, and the systems themselves cost hospitals more than $1 million -- these two elements, which don't favor switching to a rival, offer Intuitive Surgical a strong moat.
I also like the fact that the company doesn't only make money through the renting or leasing out of its systems. It actually makes most of its revenue by selling instruments and accessories needed for the surgeries, and importantly, this represents recurrent revenue.
5. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the world's leading player in cystic fibrosis (CF) treatment, and this specialty has brought in blockbuster revenue and led to strong earnings growth. The company's intellectual property should keep it in this top spot through the coming decade.
At the same time, Vertex is growing its position in treatment areas beyond CF, launching a blood disorders treatment and a pain management drug in recent times. The company has plenty of room for growth here, making now a great time to get in on the stock.
6. Coca-Cola
Coca-Cola (NYSE: KO) offers investors an impressive moat, thanks to its brand strength and wide distribution network. This has generated earnings growth over time. The company sells its eponymous drink and other well-known products and has been wise about developing new products to suit local tastes around the world.
You also will like Coca-Cola for its commitment to dividend payments, raising its dividend for more than 50 consecutive years -- that puts it on the Dividend King list and makes it a fantastic choice for passive income.
7. Pool Corp.
Pool Corp. (NASDAQ: POOL) is the world's biggest supplier of pool equipment. Though it may see softness in demand for pool building during tough economic times, it offers pool services that should power it through any economy. After all, pool owners must continue to maintain their pools regardless of economic shifts.
The stock, one that famous investor Warren Buffett reinforced his position in this year, looks like a deal trading for 22x forward earnings estimates -- down from more than 32x earlier in the year.
8. Amazon
Amazon (NASDAQ: AMZN) is a leader in e-commerce and cloud computing, and this has helped the company increase earnings over time. This market giant also is benefiting from the high-growth area of AI. Amazon is using AI to gain efficiency in its e-commerce business and offers AI products and services to cloud customers. Amazon Web Services (AWS) has already reported a $132 billion annual revenue run rate thanks to demand for its AI systems.
All of this bodes well for growth moving forward, making now a good moment to get in on the stock.
9. Target
Target's (NYSE: TGT) earnings and stock performance have been in the doldrums as the company has struggled with challenges, such as the consumer buying more essentials and fewer higher-margin items.
But 2026 could represent a year of recovery for Target. The company has recognized its weak points and even is shifting to a new chief executive officer early in the year. So, today's level -- with the stock trading for 13x forward earnings estimates -- may represent a once-in-a-lifetime buying opportunity.
10. CRISPR Therapeutics
CRISPR Therapeutics (NASDAQ: CRSP) won approval for a blood disorder treatment, Casgevy, with partner Vertex that I mentioned above, and 2026 may be a key moment for that product. Vertex says it expects "significant growth" from Casgevy in the coming year.
This, along with potential updates from CRISPR Therapeutics' clinical trials, could represent catalysts for the stock. The approval of Casgevy, based on the gene editing used throughout the pipeline, demonstrates the strength of CRISPR Therapeutics' technology and may be just the beginning of growth for the company.
11. Broadcom
Broadcom (NASDAQ: AVGO) is a networking giant and has emerged as a potential AI chip winner, too. The company makes custom chips, designed for specific uses, while AI chip giant Nvidia makes more of a general-purpose system. I don't see Broadcom upsetting Nvidia's leadership, but I do see enough demand in the market to generate plenty of growth for both players.
Broadcom has spoken of high demand and continues to sign on more AI business, and this is against a general backdrop of AI growth. So Broadcom could make a great AI bet for the new year.
12. Taiwan Semiconductor Manufacturing
I like Taiwan Semiconductor Manufacturing (NYSE: TSM) because, as a producer of chips for Nvidia and a variety of companies, this company can score multiple wins during the AI boom. It benefits as each of these chip designers gains new orders -- it isn't linked to the success of only one. That makes TSMC a no-brainer buy for investors looking for a long-term AI success story.
TSMC also is investing heavily in U.S. manufacturing, and the company should benefit greatly during this stage of the AI boom -- as cloud companies spend potentially trillions on infrastructure. All this makes TSMC a top AI stock to buy during the final 12 days of investing in 2025.
Where to invest $1,000 right now
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Adria Cimino has positions in Amazon, Target, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amazon, Apple, CRISPR Therapeutics, Costco Wholesale, Intuitive Surgical, Nvidia, Taiwan Semiconductor Manufacturing, Target, and Vertex Pharmaceuticals. The Motley Fool recommends Broadcom and Carnival Corp. 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.

12 Days of Investing: My Top 12 Stocks to Buy Before 2026

U.S. stocks ended lower on Friday, with investors dumping technology stocks and taking refuge in value assets as concerns grew over an AI bubble and Treasury yields rose after some Federal Reserve policymakers raised concerns over risks of lower borrowing costs. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.5% or 245.96 points, to close at 48,458.05 points.
The S&P 500 slipped 1.1%, or 73.59 points, to finish at 6,827.41 points. Tech, energy and industrial stocks were the worst performers.
The Information Technology Select Sector SPDR (XLK) declined 2.9%, while the Industrials Select Sector SPDR (XLI) gave up 0.6%. However, the Consumer Discretionary Select Sector SPDR (XLY) and Consumer Staples Select Sector SPDR (XLB) gained 0.4% and 0.8%, respectively. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.7%, or 398.69 points, to end at 23,195.17 points.
The fear gauge, CBOE Volatility Index (VIX), was up 5.99% to 15.74. Decliners outnumbered advancers on the NYSE by a 2.23-to-1 ratio. On the Nasdaq, a 2.34-to-1 ratio favored declining issues. A total of 18.08 billion shares were traded on Friday, higher than the last 20-session average of 17.25 billion.
On the Nasdaq, there were 136 new 52-week highs and 98 new lows. On the S&P 500, there were 32 new 52-week highs and five new lows.
Concerns Grow Over AI Bubble
Tech shares retreated on Friday as concerns over a potential AI bubble grew, compelling investors to dump high-flying stocks. Concerns grew as investors worried over the profitability of the ongoing surge in AI investments.
The decline came, with shares of Broadcom, Inc. (AVGO) declining 11.4% despite the company beating on earnings and giving a solid forecast for the ongoing quarter. Broadcom reported fourth-quarter fiscal 2025 earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.87 per share.
Shares of other big names focused on AI also saw their shares take a hit. Shares of Advanced Micro Devices, Inc. (AMD) declined 4.8%, while Palantir Technologies Inc.’s (PLTR) ended 2.1% lower. Palantir has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Treasury Yields Rise
Investors have been worried about the future of AI stocks lately. The move comes after the Federal Reserve slashed interest rates by a quarter percentage point earlier in the week for the third time this year.
Treasury yields rose on Friday after some Federal Reserve officials, especially those who had voted against the latest rate cut, warned that inflation remains elevated and lower borrowing rates could make the situation difficult.
This further dented investors’ sentiment. No major economic data was released on Friday.
Weekly Roundup
Despite Friday’s losses, the Dow ended the week with gains. The blue-chip index finished the week 1.1% higher.
The Nasdaq and the S&P 500, however, ended the week 1.6% and 0.6% lower, respectively.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.