Artificial intelligence (AI) remains a significant factor influencing the stock market today. Investors are trying to figure out which stocks might emerge as the winners or losers in AI, and this trend isn’t going unnoticed. Let’s explore two stocks that could potentially be beneficiaries of the AI boom.
Broadcom: A front-runner in custom AI chips
The AI infrastructure market is starting to display positive signs of growth. Broadcom (AVGO) is one of the companies benefiting from this shift. While Nvidia continues its stronghold in the graphics processing unit (GPU) sector, there’s an increasing demand among hyperscalers—those who operate large data centers—to seek out less expensive alternatives, particularly concerning inference costs. Inferences occur each time AI generates an answer or completes a task for a user.
A key technology for this is the custom chips known as ASICs (Application Specific Integrated Circuits). Unlike GPUs, which offer versatility, ASICs are designed for specific uses, making them typically more energy-efficient and effective. Broadcom excels in ASIC technology, providing essential components that enable clients to transform their designs into large-scale, manufacturable chips.
The firm has also seen success with collaborative developments, such as Alphabet’s well-known Tensor Processing Unit (TPU), which is becoming a significant revenue source. Broadcom anticipates AI ASIC sales to surpass $100 billion by 2027, which is more than one and a half times its expected total revenue for fiscal 2025 (which ends in November). In addition to this, Broadcom has a rapidly expanding data center networking business and a solid software division led by VMware.
With such impressive growth prospects, Broadcom appears to be a sound choice for AI-focused investment.
Meta Platforms: Leveraging AI for growth
AI infrastructure isn’t the sole avenue for companies to harness AI’s benefits. Meta Platforms is particularly skilled at using AI to boost growth within its core operations. Last quarter, the company recorded a 24% rise in sales, and it anticipates even stronger sales growth heading into the first quarter of 2026.
This notable increase stems from Meta’s integration of AI into its recommendation systems and the deployment of new AI-driven tools for advertisers. Utilizing AI allows the company to better match users with content that interests them, resulting in prolonged app engagement and increased ad exposure. Additionally, the AI technologies assist businesses in crafting more effective campaigns, enhancing user conversions, ultimately boosting ad prices.
Moreover, Meta has assets that are yet to be fully monetized. Beyond its advancements in AI, the firm has only just begun to explore advertising opportunities on WhatsApp and leverage the growing user base of Threads. This suggests that its long-term growth narrative is far from concluded, making the stock a compelling buy at current pricing.
