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Broadcom seems to have a significant opportunity with its custom AI chips.
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TSMC continues to gain ground in semiconductor manufacturing, and its stock still appears to be relatively inexpensive.
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Amazon’s stock looks undervalued, and its cloud revenue growth is expected to pick up speed.
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10 stocks we prefer over Broadcom ›
Just because a stock’s value has risen a lot since your purchase doesn’t mean you shouldn’t consider adding to it. Let’s explore three tech stocks that you might already hold and might want to invest in further right now.
Broadcom (NASDAQ:AVGO) had a strong performance in 2025 but saw a drop in December, which could have opened up a great buying opportunity. The company’s outlook for FY2026 and FY2027 seems to be looking up.
This year is expected to be significant for Broadcom’s application-specific integrated circuits (ASICs). These ASICs are tailored for specific workloads, and AI ASICs are gaining popularity, built on the success of Alphabet’s Tensor Processing Unit (TPU), which Broadcom helped create.
Alphabet is now allowing its customers to use TPUs for AI workloads, benefiting Broadcom. For example, Anthropic has ordered $21 billion worth of TPUs from Broadcom this year. Additionally, OpenAI is also collaborating with Broadcom to create its own custom AI chip.
This could be a major opportunity for Broadcom. Citigroup analysts believe that the company’s AI revenue could exceed $50 billion this fiscal year and potentially double by FY2027. Considering that Broadcom reported just under $64 billion in total sales this fiscal year, it might be wise to keep buying before this growth materializes.
Even though it’s trending near its all-time high, the outlook for Taiwan Semiconductor Manufacturing (NYSE:TSM) is continuously improving. The stock is quite appealing, trading at a forward price/earnings ratio of about 20 times based on analysts’ 2026 estimates, and has a price/earnings ratio (PEG) below 0.8. Typically, stocks with a PEG under 1 are seen as undervalued.
TSMC clearly leads in manufacturing advanced chips and is the only company able to scale this effectively. Competitors face difficulties achieving the necessary high yields for profitably making high-end GPUs and AI ASICs, which gives TSMC a sort of monopoly in this area, cementing its position as a key partner for chip designers and providing it with strong pricing power.
During this period, TSMC’s lead only expanded. Reportedly, the yields for their latest 2-nanometer technology surpassed expectations, prompting management to expedite the construction of a new factory for transitioning to 1.4nm production. There are existing plans for a 1.6nm process at a factory currently being built in Arizona. Given the surge in chip demand and TSMC’s technological edge, it’s a compelling time to consider this stock more seriously.
Meanwhile, Amazon (NASDAQ:AMZN) hasn’t moved much in stock price over recent years, despite being close to its all-time highs. However, there are various catalysts that might present a good chance to invest further.
The most significant of these is the accelerated growth expected from Amazon Web Services (AWS). Even though AWS is the company’s fastest-growing and most profitable division, its revenue growth hasn’t kept pace with other cloud providers. That said, revenue growth surged to 20% last quarter, potentially signaling the beginning of a new trend. The data center tailored for Anthropic using custom Trainium2 chips is still ramping up, and Amazon is investing heavily in expanding capacity to cater to increasing AI-demand. Recently, a $38 billion deal with OpenAI was also inked.
Additionally, Amazon’s e-commerce segment is benefiting from AI and robotics, leading to marked improvements in operational efficiency. If the economy strengthens in 2026, profitability in this sector should rise considerably.
The stock is historically affordable, trading at under 24 times forward earnings, which is much lower than peers like Walmart (37.5) and Costco (39). Both of these companies are experiencing slower sales and profit growth compared to Amazon’s retail division.
With its attractive valuation and opportunities ahead, it seems like a good moment to consider adding to Amazon stock.
Before deciding on Broadcom stock, consider this:
Our analyst team has pinpointed stocks that they believe Best 10 stocks that could yield impressive returns in the years to come, and interestingly, Broadcom didn’t make the cut.
On another note, think about Netflix. If you invested $1,000 at the time it was recommended back in December 2004, your investment would have grown to around $490,703!* And then there’s Nvidia, where a $1,000 investment from April 2005 would be worth about $1,157,689!*
It’s noteworthy that the average return for Stock Advisor stands at 966%, which far surpasses the S&P 500’s 194%—a clear market outperformance.
See 10 stocks »
*Stock Advisor will restart on January 6, 2026.
Citigroup is a promotional partner of Motley Fool Money. Jeffrey Seiler holds positions in Alphabet, Amazon, and Broadcom. The Motley Fool has interests in and recommends Alphabet, Amazon, Costco, Taiwan Semiconductor Manufacturing, and Walmart. They also recommend Broadcom while having pertinent disclosures available.
Top Stocks to Double Down Now Originally published by The Motley Fool
