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. демонстрирует разнообразные фундаментальные метрики, которые в целом указывают на сильные позиции компании в своем секторе. P/E и другие мультипликаторы значительно превышают медианные значения по отрасли, что может свидетельствовать о переоцененности акций. Однако, высокая рентабельность и маржи, такие как net profit margin и operating margin, показывают эффективное управление. Долговая нагрузка по показателю debt to equity также выше медианы, что представляет собой риск. Тем не менее, компания демонстрирует стабильный рост выручки и прибыли, что является положительным фактором. Рост EPS и прогнозируемый рост также подчеркивают уверенность в будущих доходах. В то же время, показатели ликвидности, такие как current ratio и quick ratio, ниже медианных значений, что может вызывать опасения по поводу краткосрочных обязательств. В общем, сильные финансовые результаты и устойчивый рост прибыли дают основания для осторожного оптимизма, несмотря на высокие мультипликаторы и некоторые риски, связанные с долгами и ликвидностью.

Broadcom Inc.

Key Points
Nvidia and Broadcom are profiting mightily from AI compute demand.
Chip foundry Taiwan Semiconductor just raised full-year guidance.
AI infrastructure provider Nebius is growing at warp speed.
It's hard to believe that 2026 is a third of the way over, but that's where we find ourselves with May beginning. There's an old saying that says to "sell in May and go away," but I think that's just nonsense. Several fantastic stocks are worth buying right now. Furthermore, the artificial intelligence (AI) names are just kick-starting their first rally in nearly half a year, so do you really want to miss out on that party?
I've got four names that I think have incredible upside throughout the rest of the year and beyond, and investors should consider buying them or adding more to their positions this May.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Nvidia
Nvidia (NASDAQ: NVDA) is back above the $5 trillion threshold for the first time in over six months, but that doesn't mean it's done growing. The AI story is far from wrapped up, and many data centers announced in 2025 will take years to complete, stretching out the growth cycle for Nvidia. Furthermore, many of the AI hyperscalers and cloud computing companies have all informed investors that they are still compute-constrained, which means demand is still quite high for GPUs.
This all adds up to be a huge catalyst for Nvidia's growth, and Wall Street analysts estimate Nvidia's revenue will grow at a 72% pace this year. With how large a business Nvidia is, that's an impressive growth rate. Combine that with the fact that it only trades for 26 times forward earnings, and it's clear the stock has even more upside.
2. Broadcom
AI hyperscalers cannot get enough computing power, so they are starting to expand their horizons on what type of chips they are using. One option that's becoming more and more popular is ASICs (application-specific integrated circuits). Basically, these are chips designed for one workload in mind, and they can provide better performance at a lower cost than GPUs when the workload is properly configured. Most AI hyperscalers do not have the expertise necessary to design these in-house, so they collaborate with Broadcom (NASDAQ: AVGO) to design one.
This is becoming a larger part of Broadcom's business and is leading to massive growth. In Q1 of fiscal year 2026 (ending Feb. 1), its AI semiconductor division generated $8.4 billion, up 106% year over year. Custom AI chips are just one part of that division, yet Broadcom's CEO Hock Tan believes this business will generate more than $100 billion in 2027. That's huge growth and showcases the demand for its custom AI chips.
3. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) is a general beneficiary of the AI build-out. It's a chip fabricator and makes chips that are designed by companies like Nvidia and Broadcom. It expects huge growth from AI and believes that its AI chip revenue will grow at a compounded annual growth rate (CAGR) in the mid-to-high-50% range from 2024 to 2029. That's strong growth and showcases huge demand for AI chips.
Furthermore, during its Q1 earnings report, it increased its overall revenue growth guidance for 2026 to 30%. AI demand is bigger than most realize, even for one as connected as Taiwan Semi. This bodes well for all of the stocks on this list and makes TSMC a strong pick.
4. Nebius
While you may have heard of the other three, Nebius (NASDAQ: NBIS) is a bit more under the radar. It's a neocloud company that specializes in AI-first cloud computing.
Nebius' services are becoming wildly popular and have unreal growth projections. In 2026, Wall Street analysts, on average, project that Nebius will grow its revenue at a 523% pace. Next year, that number is still 206%. Essentially, Nebius's revenue will increase 20x from the end of 2025 to 2027.
That's downright impressive growth that I want to be a part of, making Nebius a great investment to make for maximum upside.
Should you buy stock in Nvidia right now?
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Keithen Drury has positions in Broadcom, Nebius Group, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. 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 4 Best AI Stocks to Buy in May

Broadcom AVGO shares closed at $417.43 on April 30, down 2.8% from the 52-week high of $429.31 the stock hit on April 23. AVGO shares have jumped 20.6% in the year-to-date (YTD) period, outperforming the broader Zacks Computer and Technology sector’s return of 9.8%. Broadcom shares have been benefiting from rising AI revenues driven by strong demand for custom AI accelerators (XPUs) despite lower margins on the chips that are hurting the revenue mix. An expanding portfolio bodes well for AVGO’s prospects, which are expected to push up the shares.
AVGO’s Strong AI Growth Boosts Competitive Prowess
AVGO’s prospect benefits from rising AI revenues. Semiconductor business benefits from strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues, while AVGO’s revenues from XPUs jumped 140% year over year.
The company’s strong portfolio is expected to help it steer off stiff competition from NVIDIA NVDA, Advanced Micro Devices AMD and Skyworks SWKS in the AI domain. NVIDIA is benefiting from strong demand for Hopper and Blackwell architectures, while AMD’s prospects are benefiting from strong demand for EPYC and Instinct processors. Skyworks is benefiting from growing demand for its solutions across edge IoT, automotive and infrastructure end markets, as well as the pending acquisition of Qorvo. Shares of AMD, NVIDIA and Skyworks have returned 65.5%, 7% and 10.7%, YTD.
AVGO Stock’s Price Performance
Image Source: Zacks Investment Research
Broadcom’s AI momentum is expected to continue, thanks to a clientele that includes Google, Meta Platforms and Anthropic. The company continues to gain market share in AI networking, driven by the first-to-market Tomahawk 6 switch at 100 terabit per second, as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 doubles the throughput of its predecessor, Tomahawk 5, and is highly optimized for scale-out and scale-up AI networks used for training and inference. Tomahawk 6 provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million custom accelerators (XPUs).
New products like 3.5D XPU, 102.4T Ethernet switches with co-packaged optics, 400G/lane optical DSPs, 200G/lane Ethernet retimers and AECs, and PCIe Gen6 connectivity solutions are expected to drive growth. Broadcom’s latest Symantec CBX (Carbon Black XDR) is a cloud-based platform that combines Symantec’s robust prevention, Adaptive Protection, Data Security, Cloud SWG and Incident Prediction features with Carbon Black’s EDR technology for deep visibility, exceptional threat detection and rapid response across attack surfaces.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues. Semiconductor revenues are expected to be $14.8 billion, indicating 76% year-over-year growth. Broadcom expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. For 2027, Broadcom expects AI revenues from chips to surpass $100 billion.
AVGO’s Earnings Estimate Revision Shows Positive Trend
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.40 per share, up by a penny over the past 30 days, indicating 51.9% growth from the figure reported in the year-ago quarter. The consensus mark for second-quarter fiscal 2026 revenues is pegged at $22.04 billion, suggesting 46.9% growth from the figure reported in the year-ago quarter.
Broadcom Inc. Price and Consensus
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.45 per share, up 9 cents over the past 30 days, indicating 67.9% growth from the fiscal 2025 reported figure. The consensus mark for fiscal 2026 revenues is pegged at $102.45 billion, suggesting 60.4% growth from fiscal 2025’s reported number.
Here’s Why You Should Buy AVGO Stock Now
Broadcom shares are trading at a premium, as suggested by the Value Score of F.
In terms of the forward 12-month price/sales (P/S), AVGO is trading at 15.5X, higher than the broader sector’s 6.57X. Broadcom is also trading at a premium against peers, NVIDIA, AMD and Skyworks, shares of which are currently trading at 12.67X, 11.41X and 2.76X, respectively.
AVGO Shares Are Trading at a Premium
Image Source: Zacks Investment Research
Broadcom’s expanding AI portfolio is expected to drive top-line growth. This justifies AVGO’s premium valuation.
Broadcom currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See Stocks Now >>
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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.

Broadcom Shares Trade Near 52-Week High: Can the Rally Continue?

Key Points
The price of silver has risen about 117% over the past year.
The iShares Silver Trust ETF is an excellent way to invest in silver.
Gold has gotten a lot of attention over the past year as a safe haven during volatile stock markets. But the other precious metal, silver, has actually been a better investment. Over the past year, the price of silver has increased 126% to roughly $74.42 as of April 23. Thatʻs a better return than Nvidia (up 84%) or Broadcom (up 119%) had over the past year.
It is also better than gold, which is up roughly 40.5% over the past 12 months.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Silver surged to a record high of $121 per ounce in late January, fueled by industrial usage for solar panels, consumer electronics, 5G technology, data centers, electric vehicles, among other applications. But it crashed after its late January high due to a variety of factors, including supply constraints and the announcement of Kevin Warsh as the new Fed chair.
Warsh is seen as an inflation hawk, which reduced expectations for rate cuts and points to a stronger U.S. dollar. A stronger dollar, in turn, would make silver less attractive versus interest-yielding investments, lowering demand.
Despite the massive sell-off, fears about Warsh as a rate hawk could be overblown, as he has not made a commitment one way or the other on rates.
Analysts at JPMorgan Global Research forecast silver at around $81 per ounce at the end of the year, 8.8% above the current price. Thatʻs likely due to industrial demand for silver remaining fairly high throughout the year, and to geopolitical conflicts that are creating continued market uncertainty.
Investing in the SLV ETF
With its approximately 40% dip since late January, this may be a good time to invest in silver again, particularly as silver remains a safe haven from volatile stock markets. And with Warsh likely to get Senate approval to take office in May, investors will soon get a better idea where the new Fed chair stands on rates.
The best way to invest in silver, particularly for the average investor who is not an expert in precious metals, is through a silver ETF. One option favored by many investors is the iShares Silver Trust (NYSEMKT: SLV), the largest silver ETF with some $36 billion in assets under management.
The ETF is built to track the price of silver. Like silver, it has returned about 124% over the past 12 months. Year to date, impacted by the January sell-off, the ETF is up just 3.5%.
Over the past five years, SLV has had an average annualized return of 22.4%, and over the past 10 years, it has returned about 14.7% per year. It has been an excellent diversifier as it tends to do well when the stock market doesnʻt. For example, during the 2022 bear market, SLV was up about 3%.
Also, with a beta of 0.55, it is considerably less volatile than the overall market.
Thatʻs not to say that silver isn't volatile, as we have seen this year. But overall, it tends to balance out swings in the stock market, and for the average investor, a trusted, well-established ETF like SLV is a great way to invest in the commodity.
Should you buy stock in iShares Silver Trust right now?
Before you buy stock in iShares Silver Trust, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $504,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,471!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 202% 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 May 1, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, JPMorgan Chase, and Nvidia. 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.

SLV: The Largest Silver ETF in the World -- but Is It Still the Best Way to Own Silver in 2026?

Advanced Micro Devices AMD is set to release its first-quarter 2026 results on May 5.
AMD expects first-quarter 2026 revenues of $9.8 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of approximately 32% and a sequential decline of approximately 5%. The revenue guidance includes roughly $100 million of MI308 sales to China.
The Zacks Consensus Estimate for AMD’s first-quarter revenues is pegged at $9.84 billion, suggesting year-over-year growth of 32.3%. The consensus mark for first-quarter 2026 earnings is pegged at $1.30 per share, up a couple of cents over the past 30 days. The earnings estimate indicates growth of 35.4% on a year-over-year basis.
Consensus Estimate Trend
Image Source: Zacks Investment Research
AMD beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 5.96%.
Advanced Micro Devices, Inc. Price and EPS Surprise
Let’s see how things have shaped up for the upcoming earnings announcement.
Factors to Note Ahead of AMD’s Q1 Results
The mid-point of AMD’s first-quarter guidance reflects strong growth in the Data Center, Client and Gaming segments and modest growth in the Embedded segment. However, sequential revenue decline is attributed to a seasonal decline in Client and Gaming, and the Embedded segment, partially offset by growth in the Data Center segment.
AMD’s first-quarter 2026 performance is expected to have benefited from continued strong demand for its EPYC processors and Instinct accelerators. Strong server CPU demand has been a key catalyst for AMD. As hyperscalers expand their infrastructure to meet growing demand for cloud services and AI, EPYC is gaining adoption. AMD is gaining traction in the data center AI business. The company delivered record Instinct GPU revenues in the fourth quarter of 2025, led by strong demand for MI 350 Series. The trend is expected to have continued in the to-be-reported quarter.
However, AMD continues to face stiff competition from NVIDIA NVDA, Broadcom AVGO and a resurgent Intel INTC. NVIDIA is benefiting from the strong growth of its newer Hopper and Blackwell GPU platforms. Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. Intel reported strong first-quarter 2026 results with revenues growing 7% year over year. Strong demand for Xeon server CPUs, AI PCs and higher 18A wafer production, along with better pricing, improved product mix, and rising advanced packaging and Application-Specific Integrated Circuit (ASIC) revenues, drove results.
AMD Stock Outperforms Sector
Advanced Micro Devices shares have surged 59.1% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 8%. The company’s shares have underperformed Intel but outperformed NVIDIA and Broadcom, YTD. Shares of Intel, Broadcom and NVIDIA have appreciated 150.9%, 19.3% and 9.3%, respectively.
AMD’s Share Price Performance
Image Source: Zacks Investment Research
The AMD stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales, AMD is currently trading at 10.86X, higher than the sector’s 6.49X and Intel’s 8.14X but lower than AVGO’s 15.08X and NVIDIA’s 13.29X.
AMD Stock’s Valuation
Image Source: Zacks Investment Research
AMD Rides on Strong Portfolio Amid Stiff Competition
AMD’s prospects ride on its “AI Everywhere, for Everyone” strategy. The introduction of the Helios rack-scale platform, Instinct MI400 series lineup and Ryzen AI 400 and AI PRO 400 Series processors for AI PCs are noteworthy developments in this regard.
Helios is gaining traction, as evident from AMD’s deals with OpenAI for deployment of 6-GWs of instinct GPUs, HPE’s plan to offer Helios racks with purpose-built HPE Juniper Ethernet switches and optimized software for high bandwidth scale-up networking, and Lenovo’s announced Helios racks offering. Oracle Cloud Infrastructure is set to launch the first publicly available AI supercluster using AMD’s Helios rack design, featuring Instinct MI450 GPUs, EPYC Venice CPUs and Pensando Vulcano networking.
The launch of the MI500 series, powered by AMD’s CDNA 6 architecture built on advanced 2-nanometer process technology and featuring high-speed HBM4E memory, is expected to drive further growth. AMD currently expects the data center total addressable market to hit $1 trillion by 2030, suggesting a CAGR of more than 40% from roughly $200 billion estimated in 2025. AMD expects its data center AI revenues to see a CAGR of more than 80% over the next 3-5 years. Overall, data center business revenues are expected to see an annual growth rate of more than 60% over the next three to five years.
Conclusion
AMD’s expanding portfolio and strong AI-related demand are expected to have improved its top-line growth in the to-be-reported quarter. Despite stiff competition and stretched valuation, AMD benefits from strong demand for its EPYC chip and Instinct accelerators. This makes the stock attractive for investors.
AMD currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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.

Buy AMD Stock Before Q1 Earnings: Here's What You Should Know

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Broadcom Inc (Symbol: AVGO), where a total volume of 147,835 contracts has been traded thus far today, a contract volume which is representative of approximately 14.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 67.8% of AVGO's average daily trading volume over the past month, of 21.8 million shares. Especially high volume was seen for the $420 strike call option expiring May 01, 2026, with 12,173 contracts trading so far today, representing approximately 1.2 million underlying shares of AVGO. Below is a chart showing AVGO's trailing twelve month trading history, with the $420 strike highlighted in orange:
KLA Corp (Symbol: KLAC) saw options trading volume of 5,266 contracts, representing approximately 526,600 underlying shares or approximately 61.4% of KLAC's average daily trading volume over the past month, of 857,295 shares. Particularly high volume was seen for the $1450 strike put option expiring September 18, 2026, with 497 contracts trading so far today, representing approximately 49,700 underlying shares of KLAC. Below is a chart showing KLAC's trailing twelve month trading history, with the $1450 strike highlighted in orange:
And Fortinet Inc (Symbol: FTNT) saw options trading volume of 29,329 contracts, representing approximately 2.9 million underlying shares or approximately 53.3% of FTNT's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $77 strike put option expiring May 08, 2026, with 7,229 contracts trading so far today, representing approximately 722,900 underlying shares of FTNT. Below is a chart showing FTNT's trailing twelve month trading history, with the $77 strike highlighted in orange:
For the various different available expirations for AVGO options, KLAC options, or FTNT options, visit StockOptionsChannel.com.
Also see:
Healthcare Stocks Hedge Funds Are Buying
PEY Stock Predictions
ETF Fund Flows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Thursday Option Activity: AVGO, KLAC, FTNT

After the closing bell on April 29, four artificial intelligence (AI) hyperscalers reported earnings results. Together these four AI giants — Meta Platforms Inc. (META), Alphabet Inc. (GOOGL), Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) — raised their AI capital expenditure budget to $725 billion in 2026 from $670 billion estimated earlier.
The major reason for the recent hike is due to expectations of higher AI infrastructure component prices and incremental costs for expanding data center capacity in the near future. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.
This enormous growth of AI-powered data centers resulted in a crunch of both high-performance and low-powered chips as well as other memory components. Below we will discuss a few major AI infrastructure companies that are going to benefit from this massive capex of hyperscalers.
AI Semiconductor Behemoths
NVIDIA Corp. NVDA — the undisputed global leader of generative AI-powered graphical processing units (GPUs) — has been benefiting from higher shipments of the Blackwell GPU computing platforms.
In January, NVDA unveiled its new AI superchip — Vera Rubin — during the annual CES technology conference in Las Vegas. This innovative rack-scale system will deliver 10 times more performance per watt than its predecessor, Grace Blackwell.
NVIDIA will start the shipment of Vera Rubin in the second half of 2026. It has decided to announce its roadmap for Rubin Ultra, likely to be introduced in late 2027, and Feynman AI chips to be launched in 2028. NVDA currently carries a Zacks Rank #2 (Buy).
Broadcom Inc. AVGO is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy.
While the latest expansion of deals with Google and Anthropic has given AVGO a lift, the company is thriving primarily due to its AI semiconductor solutions, including custom AI accelerators and AI networking. AVGO’s AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. AVGO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo Technology Group Holding Ltd. (CRDO) is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.
CRDO’s Active Electrical Cables (“AEC”) business sits at the core of its growth narrative, playing an increasingly critical role in AI-driven networking deployments. CRDO’s hyperscaler traction sits at the center of its AEC strength. Beyond traditional hyperscalers, Credo is also seeing increasing demand from Neocloud providers. CRDO currently sports a Zacks Rank #1.
The chart below shows the price performance of three above-mentioned stocks year to date.
Image Source: Zacks Investment Research
AI-Driven Memory and Storage Giants
Micron Technology Inc. MU is benefiting from the rapidly expanding AI-driven memory and storage markets. MU has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.
The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM. MU currently sports a Zacks Rank #1.
Western Digital Corp. WDC has been witnessing strong execution amid intensified cloud and AI demand. WDC saw strong data center demand and increased adoption of high-capacity hard disk drives (HDDs). This reflects its ability to scale reliable, high-capacity storage solutions to meet the needs of the AI-driven data economy.
As AI and cloud adoption accelerate, demand for higher-density storage continues to rise. WDC is meeting this demand through close collaboration with hyperscalers, delivering reliable, high-capacity drives at scale with strong performance and total cost of ownership. WDC currently carries a Zacks Rank #3 (Hold).
Seagate Technology Holdings plc (STX) has been witnessing strong execution amid intensified cloud and AI demand. STX’s high-capacity nearline production is largely booked through 2026, with long-term contracts providing strong demand visibility through 2027. Advancing aerial density remains a major strength for STX and a key driver of progress across the entire hard drive industry.
STX’s aerial density roadmap ensures a lasting total cost of ownership (TCO) advantage for hard drives over alternative technologies. Customers recognize the value of higher-capacity HAMR drives as the most efficient solution to meet growing AI-driven data storage demands. STX currently carries a Zacks Rank #3.
The chart below shows the price performance of three above-mentioned stocks year to date.
Image Source: Zacks Investment Research
Data Center Infra Provider Bigwigs
Vertiv Holdings Co. VRT benefits from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. VRT also benefited from the accelerating digital transformation driven by AI and data center demand.
Vertiv’s partnership with NVIDIA is a key catalyst. VRT co-develops an 800-volt DC power architecture with NVDA, timed to align with the 2027 rollout of NVIDIA's Rubin Ultra platforms. This keeps VRT one GPU generation ahead of evolving silicon architectures, ensuring that its infrastructure solutions remain relevant as rack power requirements scale toward and beyond the megawatt threshold. VRT currently sports a Zacks Rank #1.
Comfort Systems USA Inc. (FIX) operates primarily in the commercial and industrial heating, ventilation and air conditioning (“HVAC”) markets. The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX.
Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. This segment is becoming a significant growth driver for FIX, offering high-margin opportunities and attracting M&A activity. FIX currently sports a Zacks Rank #1.
Lumentum Holdings Inc. (LITE) designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of AI, cloud computing, 5G connectivity, and beyond.
LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. Moreover, LITE has a strong collaboration with NVIDIA for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches. LITE currently carries a Zacks Rank #3.
The chart below shows the price performance of three above-mentioned stocks year to date.
Image Source: Zacks Investment Research
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Big Techs Assure Lasting AI Frenzy - Which Stocks Will Gain?

Avnet, Inc. AVT reported better-than-expected third-quarter fiscal 2026 results. The company’s third-quarter adjusted earnings of $1.48 per share beat the Zacks Consensus Estimate by 11.28%. The bottom line surged 76.2% on a year-over-year basis.
Net sales increased 34% year over year to $7.12 billion and surpassed the consensus mark by 12.09%. The robust third-quarter performance was mainly driven by strength across served markets and record performance in the Electronic Components segment.
Avnet’s Segment Results Show Strength in Core Distribution
In the Electronic Components segment, sales increased 34.7% year over year to $6.67 billion, while operating income margin expanded 5 basis points (bps) to 3.5%. The quarter included record sales for Electronic Components, aided by growth across regions and demand creation activity.
Farnell revenues increased 24% year over year to $454.7 million, and operating income margin expanded 224 bps to 5.2%, marking continued progress in business recovery. Management stated that the ongoing investments in the e-commerce platform and customer experience will help improve the segment’s profitability.
Avnet, Inc. Price, Consensus and EPS Surprise
Avnet Sees Broad-Based Demand Lift Across Regions
AVT’s year-over-year revenue growth reflected strength across geographies, led by Asia, where sales increased 39.3% to $3.46 billion and represented 49% of total company sales during the quarter. EMEA revenues climbed 31.3% to $2.05 billion, while the Americas posted a 26.7% increase to $1.62 billion.
Management linked the quarter’s momentum to improving market conditions across core end markets, including industrial, networking and data center, with demand improving across most verticals served. The company also noted lead times trending higher across many component categories, a backdrop that can influence customer ordering patterns.
Avnet’s Margins Improve Sequentially Despite Mix Pressure
Avnet reported a gross margin of 10.4% in the quarter, down 68 basis points year over year, which management attributed largely to sales mix, including a higher percentage of revenues coming from Asia and mix differences in Western regions.
Even with that pressure, profitability improved sequentially. Operating income margin expanded 19 bps to 2.9%, and adjusted operating income margin improved 23 bps to 3.1%, reflecting better operating leverage as volumes recovered, particularly in the West.
AVT Benefits From Pricing Tailwind Concentrated in Memory
A notable development in the quarter was the impact of higher component pricing, most prominently in memory. Management indicated that pricing increases contributed meaningfully to the sales trajectory, with roughly half of sequential sales growth and about one quarter of year-over-year sales growth tied to higher memory pricing.
Avnet emphasized that price increases generally pass through to customers, which can lift gross profit dollars without materially boosting gross margin percentage. It also flagged the potential for additional, smaller price increases across other technologies in the coming months.
Balance Sheet & Cash Flow of Avnet
As of March 28, 2026, AVT had cash and cash equivalents of $202.4 million compared with $286.5 million reported as of Dec. 27, 2025.
The long-term debt was $2.47 billion as of March 28, 2026, unchanged from the previous quarter. Gross debt leverage was 3.6X at the end of the third quarter, and management reiterated its goal to reduce leverage to roughly 3X by the end of 2026.
In the first three quarters of fiscal 2026, Avnet generated operating cash flow of $9.8 million. During the same period, it repurchased shares worth $138.3 million and paid $85.6 million in dividends.
Avnet’s Outlook Calls for Continued Sequential Growth
For the fourth quarter of fiscal 2026, Avnet projects revenues in the range of $7.30-$7.60 billion, which implies approximately 5% sequential growth at the midpoint. The company anticipates adjusted earnings between $1.70 and $1.80 per share, assuming similar interest expense to the third quarter and an adjusted effective tax rate between 21% and 25%. The Zacks Consensus Estimate for fourth-quarter revenues and earnings is pegged at $6.11 billion and $1.46 per share, respectively.
Operationally, management described book-to-bill ratios as well above parity in all regions and noted backlog growth as customers respond to a tightening supply environment. The company said that its guidance assumes current market conditions persist, with Electronic Components sales growth expected across all regions.
Avnet’s Zacks Rank and Other Stocks to Consider
Currently, AVT sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology MU, Broadcom AVGO and NVIDIA NVDA. Micron Technology and Broadcom each sport a Zacks Rank #1 at present, while NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.36 per share in the past 30 days, suggesting an increase of 604% from fiscal 2025’s reported figure. Micron Technology shares have surged 81.7% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 17.2% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 3 cents to $8.06 per share in the past 30 days, implying a year-over-year improvement of approximately 69%. NVIDIA shares have risen 12.2% YTD.
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Avnet's Q3 Earnings Beat Estimates on Record Components Sales

Key Points
Taiwan Semiconductor and Micron are leading chip fabricators.
Nvidia and Broadcom are seeing huge demand for their processors.
Enormous sums of money have already been spent on artificial intelligence (AI) computing infrastructure, and by all projections, there's much more such spending to come. A lot of it is being spent on data centers, which house the computing units that power AI training and inference. One widely cited study by McKinsey & Company predicts the build-out will require nearly $7 trillion in capital expenditures by 2030. That estimate was published last year at this time; the real number could wind up higher.
There are several companies primed to benefit from this build-out, and four of them look like great investments now.
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Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is an obvious beneficiary. It's the world's leading logic chip fabricator and has a massive client base that depends on its foundry capabilities. Two of its major clients are Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA), both of which don't actually produce any chips themselves; they design them.
Some of Nvidia's competitors are also TSMC clients, which means that Taiwan Semiconductor is one of the ultimate neutral ways to play the AI build-out. As long as there is increased AI spending, chances are quite high that TSMC will benefit from it, as it will likely be producing the chips that go inside whichever computing units happen to be the most popular at any given time.
With management guiding for a 25% compound annual growth rate (CAGR) from 2024 to 2029, it's a solid investment pick.
Nvidia
Nvidia (NASDAQ: NVDA) has become the largest company in the world thanks to massive demand for AI computing power, and that demand is only getting stronger. It seems odd to say that a company with a $5 trillion market cap can be nearly doubling its revenue each quarter, but Nvidia is approaching that. After decelerating last year, its revenue growth started to accelerate again last quarter.
For the first quarter, analysts expect 79% revenue growth. For Q2, that same group projects 85% growth. That showcases that Nvidia is not only thriving from the AI build-out, but also gaining ground. The massive data center build-out opportunity is just getting started, and Nvidia stock will be a top way for retail investors to capitalize on it.
Broadcom
As I alluded to above, there are other AI chip designers that utilize TSMC's services. Broadcom (NASDAQ: AVGO) is one of them, but it's approaching the market from a different angle than Nvidia. Instead of making broad-purpose computing chips and selling them to a wide array of buyers, Broadcom is partnering directly with AI hyperscalers to design custom chips that are tailored for the precise types of workloads they'll be used for. Doing that often provides better cost performance than an Nvidia GPU.
This is leading to substantial growth for Broadcom; sales from its AI semiconductor division rose by 106% to $8.4 billion last quarter. By the end of 2027, this division is expected to be producing more than $100 billion annually -- a major acceleration. Broadcom is challenging Nvidia's dominance in the AI chip market, and its stock will likely be a major winner along the way.
Micron
Micron Technology (NASDAQ: MU) is both a chip designer like Nvidia and a fabricator like Taiwan Semiconductor. However, it isn't producing logic chips. Instead, it specializes in memory chips, in particular, high-bandwidth memory chips. These are incredibly important in the AI computing world, as they allow the processors to quickly access the large volumes of information they require in order to perform their computations. Demand for memory chips is so high now that Micron estimates it will only be able to meet half to two-thirds of its medium-term demand. That has allowed it and its peers to raise memory prices dramatically, which is why its earnings have soared recently.
The need for memory will grow as more computing chips are produced, which puts Micron on a similar growth trajectory to the others chip companies mentioned. This makes Micron a clear beneficiary of the AI build-out, and its stock may still have a ton of room to run.
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Keithen Drury has positions in Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Broadcom, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. 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.

4 Stocks Primed to Benefit From the $7 Trillion Data Center Build-Out

Broadcom’s AVGO Semiconductor business is benefiting from the strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues. The company continues to gain market share in AI networking, driven by strong adoption of Tomahawk 6 switch as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers.
Tomahawk 6 family switch series is now shipping in production volume. Tomahawk 6 doubles the throughput of its predecessor, Tomahawk 5, and is highly optimized for scale-out and scale-up AI networks used for training and inference. Tomahawk 6 delivers exceptional flexibility with support for 100G and 200G SerDes. It provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million custom accelerators (XPUs).
An expanding portfolio bodes well for Broadcom’s prospects. The company has introduced 3.5D XPU, 102.4T Ethernet switches with co-packaged optics, 400G/lane optical DSPs, 200G/lane Ethernet retimers and AECs, and PCIe Gen6 connectivity solutions. AVGO has also extended a partnership with Meta Platforms META under which the companies will co-develop multiple generations of META’s custom AI chips (MTIA). AVGO will provide its XPU platform and advanced networking technologies to help Meta Platforms build a high-performance AI infrastructure. The partnership includes an initial deployment exceeding 1 gigawatt of computing capacity, with plans to scale to multiple gigawatts over time.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues. Semiconductor revenues are expected to be $14.8 billion, indicating 76% year-over-year growth. Broadcom expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. The Zacks Consensus Estimate for revenues is currently pegged at $22.04 billion, suggesting 46.9% growth from the figure reported in the year-ago quarter.
AVGO Faces Tough Competition in the Semiconductor Market
Broadcom is facing stiff competition from NVIDIA NVDA and Advanced Micro Devices AMD in the semiconductor space.
NVIDIA is benefiting from the strong growth of AI and high-performance accelerated computing. The growing demand for generative AI and large language models using GPUs based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. The company’s latest Blackwell Ultra GPUs deliver up to 25 times the token throughput for AI inference compared to Hopper 100, which strengthens NVIDIA’s dominance in AI-driven computing.
AMD’s prospects are benefiting from strong demand for EPYC processors that power cloud and enterprise workloads. Emerging AI use cases and rapid adoption of agentic AI are generating demand for general-purpose compute infrastructure, benefiting EPYC demand. Apart from EPYC, AMD’s prospects are driven by strong demand for Instinct accelerators. The launch of the Instinct MI350 series that supports deployments powered by AMD CPUs, GPUs and NICs has strengthened AMD’s system-level capabilities.
AVGO’s Share Price Performance, Valuation & Estimates
Broadcom shares have appreciated 15.5% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 7.8%.
AVGO Stock Outperforms Sector
Image Source: Zacks Investment Research
The AVGO stock is trading at a premium, with a forward 12-month price/sales of 14.88X compared with the broader sector’s 6.5X. Broadcom has a Value Score of D.
AVGO Stock Has a Stretched Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.45 per share, up 0.8% over the past 30 days, suggesting 67.9% growth from the figure reported in fiscal 2025.
Broadcom Inc. Price and Consensus
Broadcom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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AVGO Rides AI Boom: Explosive Growth in Semiconductor Fuels Outlook

An updated edition of the March 11, 2026, article.
Artificial Intelligence (AI) allows machines to analyze large volumes of data, identify patterns, and make independent decisions. It is transforming sectors like robotics, healthcare, finance, cybersecurity, and e-commerce by simulating human intelligence through technologies such as machine learning, deep learning and natural language processing. Advances in multimodal learning and enhanced context awareness are accelerating AI adoption. From chatbots and medical diagnosis to fraud detection and autonomous systems, AI has become a key driver of organizational agility, while significantly improving productivity and operational efficiency.
Per Gartner, global AI spending is expected to hit $2.52 trillion in 2026, indicating 44% growth over 2025. According to the Boston Consulting Group, CEOs plan to spend 1.7% of revenues in 2026. U.S. tech giants, including Microsoft MSFT, Alphabet GOOGL and Meta Platforms, have been at the forefront of bringing remarkable advances to AI technology, well supported by powerful AI chips and custom accelerators from NVIDIA NVDA, AMD, Broadcom AVGO and Micron Technology MU. The deals between OpenAI and AMD, as well as OpenAI and NVIDIA, reflect growing demand for AI chips. Alphabet’s Tensor Processing Units are also gaining traction. Broadcom’s extended partnership with Meta Platforms will see the companies co-develop multiple generations of META’s custom AI chips.
AI models continue to evolve thanks to strong spending on developing large language models (LLMs). Microsoft-backed OpenAI introduced GPT-5 chat, which represents a major improvement in natural language understanding and generation capabilities. Expanding its generative AI footprint, Alphabet introduced Nano Banana Pro, which is built on Gemini 3 Pro. Alphabet is infusing AI into its search business in order to attract more users, while Meta Platforms’ focus on integrating AI into its platforms is driving user engagement. Both initiatives are driving ad revenue growth.
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Micron Technology is benefiting from surging demand for HBM and robust DRAM pricing recovery. DRAM revenues accounted for more than 79% of Micron’s total sales in the second quarter of fiscal 2026. The pricing benefits are likely to be driven by rising AI server demand, causing a scarcity in the availability of cutting-edge DRAM supplies. This will support Micron’s margin expansion and profitability. This Zacks Rank #1 (Strong Buy) company is capitalizing on the AI boom with its HBM3E solutions, which are increasingly being adopted by major hyperscalers and enterprise customers. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron is poised to be the key beneficiary of surging AI-related infrastructure spending, as companies continue to build out GPU clusters and AI data centers that require advanced memory solutions. AI PCs are an important part of Micron’s growth plan. An expanding partner base that includes the likes of NVIDIA, AMD and Intel, is enabling Micron to capture a larger share of the AI infrastructure market. Deepening relationship with major cloud and enterprise customers ensures stable revenue streams and reduces the risk of pricing volatility.
Broadcom’s prospects benefit from rising AI revenues. Semiconductor business benefits from strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues, while AVGO’s revenues from XPUs jumped 140% year over year.
Broadcom’s AI momentum is expected to continue, thanks to a clientele that includes Google, Meta Platforms and Anthropic. This Zacks Rank #1 company continues to gain market share in AI networking, driven by the first-to-market Tomahawk 6 switch at 100 terabit per second, as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 delivers exceptional flexibility with support for 100G and 200G SerDes. It provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million XPUs.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues.
NVIDIA has been a key beneficiary of the AI boom, which has driven strong demand for its graphics processing units (GPUs) and computing solutions. This Zacks Rank #2 (Buy) company’s data center business is benefiting from higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications. The demand for NVIDIA’s Blackwell GPU computing platforms has been a key catalyst as cloud providers and enterprises scale their AI infrastructure.
The Blackwell architecture has been at the core of revenue growth for a while now, and NVIDIA is planning to release another architecture, Rubin. The company has already unveiled six new chips under this architecture, comprising the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9, SuperNIC, BlueField-4 DPUs and Spectrum-6 Ethernet Switch. NVIDIA’s leadership in AI chip development positions it well for sustained revenue growth in the data center segment. NVIDIA’s outlook for the first quarter of fiscal 2027 remains upbeat. The company expects first-quarter revenues to increase 77% year over year to $78 billion, reflecting continued momentum in AI-driven demand.
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	AVGO	Industry	AVGO	Industry	Volume, $
Yesterday 396.8 - 405.6	0.83	5.99	2.81	1.32	4.34B
Week 394.7 - 429.3	-3.68	10.70	4.52	6.54	29.35B
Month 290.0 - 429.3	35.23	15.69	9.82	11.03	132.49B
3 Months 290.0 - 429.3	22.39	17.44	16.23	20.10	390.60B
6 Months 290.0 - 429.3	5.29	11.85	27.74	31.35	856.84B
Year 184.0 - 429.3	118.86	24.40	42.39	44.34	1.37T
3 years 60.1 - 429.3	557.21	35.94	84.19	85.22	2.35T
5 years 41.5 - 429.3	785.03	33.46	95.31	113.56	2.58T
All time 1.4 - 186.4	10,448.49	54.96	—	—	926.90B

Broadcom Inc.

Price and volatility history

Risk ratios