Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

Meta Platforms, Inc.

Key Points
Apple stock is cooling off after a rapid run-up in the second half of last year.
A Gemini-powered Siri upgrade could come in February.
Apple shares are far from cheap.
Less than one month into the new year, Apple (NASDAQ: AAPL) is already down 8.8% year to date at the time of this writing, compared to a 1% gain in the S&P 500 (SNPINDEX: ^GSPC).
That makes Apple the second-worst-performing component of the Dow Jones Industrial Average.
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Here's what's driving the sell-off, and if the mega-cap tech stock is a buy now.
Context is key
Always take context into account when evaluating a stock's performance within a specific window, such as year to date or a year.
Apple sold off in the first half of 2025 due to tariff-related fears of eroding margins that never came true. The stock then gained 32.5% in the second half of the year. So heading into 2026, the company had added more than $1 trillion in market cap in a matter of months.
The stock is still up big over the last seven months, even when factoring in its pullback so far this year. It's up to investors to decide how much of the gain is warranted.
Apple is making a splash with AI
On Jan. 12, Alphabet and Apple published a joint statement announcing the integration of Google's Gemini models and cloud technology into the next generation of Apple Foundation Models. Reports indicate that a Gemini-powered version of Siri could come as soon as February.
Having a voice-controlled artificial intelligence (AI) assistant is a brilliant move on Apple's part. Manually-controlled AI functionality may be off-putting to some users, but narrating commands to an assistant could make AI more approachable for users who aren't tech savvy. It's also a good way for the company to gradually phase in AI rather than launching big, overwhelming upgrades.
Apple is known for taking its time with product launches, which is something long-term investors can appreciate. Instead, it aims to maximize the overall impact of a product or a product line's life cycle.
And that was certainly the case last year with the iPhone 17, which featured significant improvements in its camera, processing, and design but lacked the AI showstopper that some investors wanted.
Still, the iPhone 17 came out in September 2025, and investors cheered strong demand and a return to meaningful earnings growth, which Apple had been lacking for years.
Fundamentals are improving
As you can see in the following chart, Apple's earnings soared during the pandemic as consumers shifted purchasing from services to products, but then stagnated. Its recent results have given its earnings and operating margins a much-needed jolt.
Apple's product revenue grew 4.1% in fiscal 2025, and services revenue jumped 13.5%.
For the fiscal year, products raked in a highly impressive 36.8% gross margin, but services were even better at 75.4%. And with services now making up 26.2% of total sales, margins could continue to expand.
Overall, Apple's results have been solid. And that's without factoring in the growth potential of what is likely to be a big calendar year for the company with AI-powered software upgrades and an iPhone purpose-built for AI integration, which may also feature its first-ever foldable design.
Higher-end versions of the iPhone 18 are expected to be powered by Taiwan Semiconductor Manufacturing's 2-nanometer chips, which will make it by far the most expensive iPhone ever, but will also drastically improve processing and battery life.
Apple's valuation is elevated
With earnings growth and margins improving, the stock may become more appealing to growth investors. But its valuation is expensive, given that analyst estimates have the company growing earnings by only 10.3% in fiscal 2026 and 10.5% in fiscal 2027.
Even after its recent sell-off, Apple has a 30.9 forward price-to-earnings ratio (P/E) -- which is more expensive than Amazon, Alphabet, Microsoft, and Meta Platforms. Even Broadcom, which is growing at a breakneck pace and is also high-margin, has a 31.6 forward P/E. And Nvidia -- which converts over half of its revenue into after-tax net income and is also growing at a breakneck pace -- has a forward P/E under 40.
I would choose every stock in that chart over Apple because they all have strong competitive moats and more attractive valuations relative to their growth potential. Another distinct difference between Apple and other major tech stocks is its business model.
Apple is heavily dependent on consumer spending. In fiscal 2025, it demonstrated remarkable resilience in its core North American market, and strong growth in Europe and Asia (outside of China).
But China sales declined, and it remains to be seen if U.S. consumers will continue paying higher prices for Apple's AI-integrated devices, especially given that the cost of living continues to outpace wage growth. By comparison, big tech companies that rely mainly on business-to-business sales aren't as sensitive to weakness in consumer spending.
Keep Apple on a watch list (for now)
Apple is a decent stock to buy in 2026, but it's not all that compelling. Investors can buy a high-octane growth stock like Broadcom for a similar valuation, or get far more balanced earnings growth from Microsoft, or high margins and solid earnings from Meta at a far less expensive valuation.
The slower a company's earnings growth, the more critical you should be of its valuation. And in Apple's case, it's somewhere between a tech stock and a consumer-facing company.
In terms of consumer-facing companies, I would much rather buy high-yield dividend stocks like Coca-Cola and Procter & Gamble, which are passive-income powerhouses at far more attractive valuations than Apple.
That said, investors who believe in Apple's ability to capitalize on AI may still want to consider buying Apple now. And if there is a sell-off in AI stocks or a pullback in hyperscaler spending on AI, I would expect Apple to hold up far better than companies that have been pouring capital into long-term AI investments. Apple has an impeccable balance sheet and consistently generates gobs of free cash flow, which it uses to buy back stock and invest in long-term projects.
In sum, there are worse ideas than buying Apple after its latest pullback, but it's not a screaming buying opportunity by any means.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
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Daniel Foelber has positions in Nvidia and Procter & Gamble and has the following options: short February 2026 $150 calls on Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Salesforce, and Taiwan Semiconductor Manufacturing. 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.

Apple Is the Second-Worst-Performing Dow Jones Stock So Far in 2026. Is the Sell-Off a Buying Opportunity?

In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and other AI stocks. To learn more, check out the short video, consider subscribing, and click the special offer link below.
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*Stock prices used were the after-market prices of Jan. 28, 2026. The video was published on Jan. 28, 2026.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AMD, Broadcom, and Nvidia Stock Investors Just Got Fantastic News from CEO Mark Zuckerberg

For Immediate Release
Chicago, IL – January 29, 2026– Zacks Director of Research Sheraz Mian says, "Total earnings for the 106 S&P 500 members that have reported Q4 results are up +14.9% from the same period last year on +7.9% higher revenues."
Taking Stock of Q4 Earnings Season
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The picture emerging from the Q4 earnings season is one of a steadily improving earnings outlook that is starting to show up in a favorable estimates revisions trend, particularly for some of the economically sensitive sectors like Basic Materials, Autos, Construction, and others. We should note here that the revisions trend has been consistently positive for the Tech sector for the last many quarters.
Total earnings for the 106 S&P 500 members that have reported Q4 results are up +14.9% from the same period last year on +7.9% higher revenues, with 76.4% beating EPS estimates and 63.2% beating revenue estimates.
The Q4 earnings and revenue growth pace at this stage represent a clear acceleration from what we had seen from this group of companies in other recent periods. Positive beats are less numerous this reporting cycle, with the EPS and revenue beats percentages tracking below the 20-quarter averages for this group of index members.
The Tech sector has been a key growth driver since 2023 and is on track to play that role in 2025 Q4 and beyond as well. Q4 earnings growth for the S&P 500 index drops to +5.5% from +9.2% after removing the Tech sector’s enormous contribution from the aggregate numbers. The Tech sector is currently expected to account for almost half of S&P 500 earnings growth in 2026.
Q4 earnings for the ‘Magnificent 7’ group of companies, which includes the likes of Meta Platforms META, Microsoft MSFT and Tesla TSLA, are expected to be up +17.1% from the same period last year on +16.7% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +6.3% (vs. +9.2%).
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36.1% of the index’s total earnings over the coming four-quarter period and currently accounts for 43.3% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members enjoy a strong market following and support.
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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
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Zacks Earnings Trends Highlights: Meta, Microsoft and Tesla

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The picture emerging from the Q4 earnings season is one of a steadily improving earnings outlook that is starting to show up in a favorable estimates revisions trend, particularly for some of the economically sensitive sectors like Basic Materials, Autos, Construction, and others. We should note here that the revisions trend has been consistently positive for the Tech sector for the last many quarters.
Total earnings for the 106 S&P 500 members that have reported Q4 results are up +14.9% from the same period last year on +7.9% higher revenues, with 76.4% beating EPS estimates and 63.2% beating revenue estimates.
The Q4 earnings and revenue growth pace at this stage represent a clear acceleration from what we had seen from this group of companies in other recent periods. Positive beats are less numerous this reporting cycle, with the EPS and revenue beats percentages tracking below the 20-quarter averages for this group of index members.
The Tech sector has been a key growth driver since 2023 and is on track to play that role in 2025 Q4 and beyond as well. Q4 earnings growth for the S&P 500 index drops to +5.5% from +9.2% after removing the Tech sector’s enormous contribution from the aggregate numbers. The Tech sector is currently expected to account for almost half of S&P 500 earnings growth in 2026.
Q4 earnings for the ‘Magnificent 7’ group of companies, which includes the likes of Meta Platforms META, Microsoft MSFT, and Tesla TSLA, are expected to be up +17.1% from the same period last year on +16.7% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +6.3% (vs. +9.2%).
The Earnings Big Picture
The chart below shows expectations for 2025 Q4 in terms of what was achieved in the preceding four periods and what is currently expected for the next three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36.1% of the index’s total earnings over the coming four-quarter period and currently accounts for 43.3% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members enjoy a strong market following and support.
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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.

Taking Stock of the Q4 Earnings Season

Key Points
The midpoint of the social media company's capital expenditure guidance implies 73% year-over-year growth.
Meta guided for a significant acceleration in its revenue growth rate in Q1.
The company's costs and expenses are growing faster than revenue, weighing on earnings growth.
The big news that shocked investors when Meta Platforms (NASDAQ: META) released its third-quarter update in late October was the social media company's plans for capital expenditures to soar in 2026. While the company didn't provide the exact figure at the time, management indicated that the dollar growth in capital expenditures in 2026 would be significantly higher than it was in 2025. In other words, management was essentially saying: Expect a figure north of $100 billion.
With the tech giant's fourth-quarter results (along with management's full-year outlook) out, we now have a much better idea of where exactly capital expenditures may fall in 2026. Meta said in its fourth-quarter update on Wednesday afternoon that it expects capital expenditures for the year to be between $115 billion and $135 billion.
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Here's a closer look at Meta's fourth-quarter results and what this number means for the company and investors.
Undeniable momentum
Meta's revenue in Q4 rose 24% year over year, putting its top line at $59.9 billion for the period. Showing how the company finished the year strong, this is a higher growth rate than its full-year 2025 revenue growth of 22%.
Even more, Meta managed to grow its earnings per share 11% year over year in Q4, even as costs and expenses soared 40%.
Fueling the quarter was a 7% year-over-year increase in daily active users across its platforms, 18% growth in ad impressions, and 6% growth in average price per ad.
And if you had any doubts about whether the company's investments in AI (artificial intelligence) are paying off, think again. The midpoint of management's guidance for first-quarter revenue of $53.5 billion to $56.5 billion implies a year-over-year revenue growth rate of 30% -- a huge acceleration.
Soaring costs
With all of this said, accompanying Meta's soaring growth is even faster spending growth.
Starting with Meta's outlook for capital expenditures in the range of $115 to $135 billion, the midpoint of this forecast calls for 73% year-over-year growth -- and that's on top of 84% growth in 2025.
Growth in capital expenditures like this is fundamentally changing Meta's cost structure. Indeed, this is why management expects one of its largest drivers in 2026 expense growth to be higher depreciation. After all, most capital expenditures begin as a cash item on the cash flow statement and eventually find their way to the income statement in the form of depreciation -- and Meta's big spending on AI infrastructure is doing just that.
Indeed, turning to the income statement, management said it expects full-year 2026 total expenses to be between $162 billion and $169 billion. The midpoint of this guidance range implies more than 40% year-over-year growth.
The net result? Even though Meta clearly expects to start 2026 with a significant step-up in revenue growth, management's guidance for operating income this year didn't have the same sizzle. Management simply said it expects full-year 2026 operating income will be "above" 2025 operating income.
In fact, we're already seeing the deleveraging in Meta's earnings profile caused by its big spending. The company's 11% year-over-year earnings-per-share growth in its fourth quarter lagged its 24% revenue growth by a wide margin.
Is the big spending worth it?
The big question on investors' minds, therefore, is whether or not this big spending will eventually pay off for Meta.
Sure, based on management's first-quarter outlook, it looks like it's already starting to pay off in top-line growth. But this spending will likely be a drag on earnings-per-share growth in 2026. So investors will need to look beyond 2026 to decide whether these investments will ultimately be worth it. If these investments help Meta build a personal superintelligence like the company hopes to, and revenue growth remains at elevated levels beyond 2026, the deleveraging we are seeing today in Meta's growth profile could turn into operating leverage later on.
Fortunately, the stock's valuation going into the earnings wasn't extraordinarily high relative to Meta's recent strong growth, so investors seemed to be leaving some room for error if the company's investments don't pay off handsomely. But with the stock soaring about 8% in after-hours on Wednesday as of this writing, investors clearly have more confidence that Meta's year of massive spending will be worthwhile.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 28, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. 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.

1 Massive Number From Meta Platforms' Earnings Report Every Investor Needs to See

Key Points
Meta Platforms is leaning into its wildly successful artificial intelligence (AI) strategy.
The company revealed that it continues to increase both its user base and engagement.
Even as Meta's digital advertising business is thriving, its stock price is attractive.
While many companies are looking for ways to profit from artificial intelligence (AI), Meta Platforms (NASDAQ: META) has flipped the narrative on its head. The company has long used sophisticated algorithms to surface relevant content and direct targeted advertising to users of its social media platforms. The advent of generative AI has taken that approach to the next level.
When Meta reported its quarterly results after the market close on Wednesday, one thing was crystal clear. The company continues to stick to the strategy that fueled its success while also looking for ways to profit from an AI-centric future.
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The numbers tell the tale
For the fourth quarter, Meta generated revenue that grew 24% year over year to $59.9 billion. This fueled diluted earnings per share (EPS) of $8.88, which increased 11%. For context, analysts' consensus estimates were calling for revenue of $58.47 billion and EPS of $8.22, so Meta sailed past Wall Street's expectations.
The results were fueled by Meta's social media audience, with daily active users of 3.58 billion, up 7% year over year. This ever-growing user base is Meta's target market for digital advertising, which generates the lion's share of its revenue.
CEO Mark Zuckerberg revealed that Meta has been reaping the benefits of its foray into AI. In the fourth quarter, ad impressions climbed 18% year over year, driving the average price per ad up 6%.
Zuckerberg said the company plans to lean into its AI-driven success. In 2026, Meta is planning to spend between $115 billion and $135 billion on capital expenditures (capex), primarily on AI infrastructure.
Meta's ability to scale down its Llama large language models (LLMs) to smaller AI systems for targeted advertising has been tremendously successful, boosting user engagement and making its adtech business even more profitable. This is a prime example of getting a great return on investment (ROI), the holy grail of AI spending.
Another development that was music to the ears of shareholders was comments from CFO Susan Li. Meta has been pouring money into Reality Labs, which serves as the hub for the company's metaverse, smart glasses, and other augmented reality and virtual reality products.
Li noted that full-year losses for Reality Labs in 2026 will be "similar to 2025 levels." After funneling more than $19 billion into the segment last year, investors were pleased to hear that things wouldn't be getting any worse.
Perhaps as importantly, Meta is predicting that its growth streak will continue. For the first quarter, management's forecast is calling for revenue of $55 billion at the midpoint of its guidance. That would represent year-over-year growth of 30%. That was well ahead of Wall Street's expectations of $51.4 billion.
Meta continues to be one of the clearest examples of using AI to boost results in near real time. At the same time, the company is investing in building out its infrastructure, which will support its growth over the coming decade.
Finally, with a price-to-earnings (P/E) ratio of less than 30, Meta offers a common-sense, low-risk way to profit from the AI revolution.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 28, 2026.
Danny Vena, CPA has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. 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.

Meta Platforms Stock Investors Just Got Fantastic News from CEO Mark Zuckerberg

Key Points
Broadcom’s stock has surged 2,620% over the past decade.
Its AI chip business is growing like a weed.
It’s networking, optical, and infrastructure software segments complement that growth.
As the artificial intelligence (AI) market expands, more companies are upgrading their data centers to handle the skyrocketing usage of AI applications. According to Fortune Business Insights, the global AI infrastructure market will expand at a CAGR of 29.1% from 2025 to 2032.
What's the best chip play on the AI infrastructure boom?
One of the simplest ways to profit from that secular boom is through Broadcom (NASDAQ: AVGO), which produces custom application-specific integrated circuits (ASICs) for processing AI tasks. When installed at scale, these chips can process AI inference tasks at a more cost-efficient rate than Nvidia's (NASDAQ: NVDA) data center GPUs.
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Many hyperscalers -- including Alphabet's Google and Meta Platforms -- are installing Broadcom's custom AI accelerators to reduce their dependence on Nvidia's data center GPUs. Broadcom also bundles those chips with its own networking switches, optical equipment, and infrastructure software to help those tech giants efficiently expand their data centers.
In fiscal 2025 (which ended last November), Broadcom's AI chip revenue rose 65% to $20 billion, accounting for 31% of its top line and offsetting the slower growth of its non-AI chips and infrastructure software business. From fiscal 2025 to fiscal 2028, analysts expect its revenue and earnings per share (EPS) to grow at CAGRs of 38% and 47%, respectively, as the AI market expands and its non-AI businesses stabilize in a warmer macro environment.
What are its upcoming catalysts?
Broadcom expects to generate $60 billion to $90 billion in annualized AI chip revenues by the end of fiscal 2027, with most of that growth coming from just three hyperscale customers. It will also sell more networking and optical chips for the broader AI market. At the same time, the stable growth of its infrastructure software business will offset the cyclical choppiness of its chipmaking business.
Over the past decade, Broadcom has acquired numerous companies -- including CA Technologies, Symantec's enterprise security division, and the cloud software giant VMware -- to diversify its business. It will likely continue to make bold acquisitions for the foreseeable future.
Broadcom's stock looks reasonably valued at 30 times next year's earnings, and it still has plenty of irons in the fire. It's not attracting as much attention as Nvidia, which generates most of its revenue from its AI data center GPUs. Still, it's a more diversified way to profit from the growth of the AI infrastructure market. Its forward dividend yield of 0.8% won't impress income investors, but its low payout ratio of 49% gives it plenty of room for future dividend hikes.
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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 28, 2026.
Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could This Chip Stock Be the Best Way to Play the AI Infrastructure Buildout?

Key Points
Nvidia is selling the best picks and shovels for the booming AI market.
It locks in those customers with its software, networking products, and other services.
Its stock still looks reasonably valued relative to its growth potential.
Nvidia's (NASDAQ: NVDA) stock surged 26,960% over the past decade. Much of that growth was driven by the soaring popularity of artificial intelligence (AI) applications. Nvidia's discrete GPUs, which were once mainly used to render graphics in video games, were well-suited to handle complex AI applications because they could simultaneously process parallel tasks. That set them apart from CPUs, which were optimized for processing sequential tasks.
Some investors might be reluctant to chase Nvidia's stock after those massive gains. However, a single catalyst could drive its stock even higher in 2026: skyrocketing demand for AI infrastructure upgrades to support the latest AI applications.
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Why would that trend drive Nvidia's stock higher?
The global AI infrastructure market could expand at a CAGR of 29.1% from 2025 to 2032, according to Fortune Business Insights, as more data centers upgrade their AI chips. Nvidia already controls more than 90% of the discrete GPU market, according to Carbon Credits. It maintained its lead in the booming data center market through AI-oriented architecture upgrades, including Turing (2019), Ampere (2020), Hopper (2022), and Blackwell (2024).
Nvidia also locks in its customers with CUDA (Compute Unified Device Architecture), its proprietary programming platform optimized for its own chips. It also bundles its chips with its own networking products, software, and services to further widen its moat. Most of the world's top AI companies -- including Microsoft (NASDAQ: MSFT), OpenAI, and Meta Platforms (NASDAQ: META) -- have spent billions of dollars on Nvidia's data center chips.
Nvidia faces some competition from AMD's (NASDAQ: AMD) cheaper data center GPUs and Broadcom's (NASDAQ: AVGO) custom AI accelerators for hyperscalers. Still, there could be plenty of room for all of these leading AI chipmakers to grow without stepping on each other's toes. Moreover, Nvidia's "best in breed" reputation, the speed of its deployments, and the stickiness of its prisoner-taking ecosystem should make it the preferred chipmaker for most AI companies. Simply put, Nvidia should continue to sell the best picks and shovels for general-purpose AI applications and remain a linchpin of the AI infrastructure market.
From fiscal 2025 (which ended last January) to fiscal 2028, analysts expect Nvidia's revenue and earnings per share (EPS) to grow at CAGRs of 47% and 45%, respectively. Those are exceptional growth rates for a stock that trades at 27 times next year's earnings, and it should remain one of the simplest ways to profit from the AI market's long-term growth.
Should you buy stock in Nvidia right now?
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Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Reason Nvidia Stock Could Surge in 2026

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