Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a><\/p>\n That’s why AI giants like Alphabet’s Google, Meta Platforms, OpenAI, and Anthropic have all been buying Broadcom’s AI chips. Let’s see how much larger Broadcom’s AI business could grow — and why it’s still a great buy.<\/p>\n How rapidly is Broadcom’s AI business growing? <\/p>\n In fiscal 2025 (which ended last November), Broadcom’s AI chip sales surged 65% to $20 billion, accounting for 31% of its top line. It expects that figure to rise to at least $100 billion in fiscal 2027, accounting for more than 58% of its projected revenue.<\/p>\n Broadcom’s hyperscale customers should ramp up their chip purchases as the AI market expands. By installing more of those custom ASICs, they can reduce their infrastructure costs and curb their long-term dependence on Nvidia. While its ASICs aren’t as flexible as Nvidia’s GPUs for training purposes, they’re well-suited for specific inference tasks.<\/p>\n Broadcom also sells a broad range of non-AI chips for mobile, data center, networking, wireless, storage, and industrial applications, as well as infrastructure and security software. Those businesses aren’t growing as rapidly as its AI chip business, but it can bundle its products together to lock in its customers and widen its moat across multiple markets.<\/p>\n Why is Broadcom still a great investment? <\/p>\n From fiscal 2025 to fiscal 2028, analysts expect Broadcom’s revenue and EPS to grow at CAGRs of 53% and 66%, respectively. Yet it still trades at just 25 times next year’s earnings — making it one of the market’s cheapest mega-cap AI stocks relative to its growth rate.<\/p>\n Nvidia — which is expected to grow both its revenue and EPS at a 46% CAGR from fiscal 2026 (which ended this January) and fiscal 2029 — trades at 16 times next year’s earnings. Nvidia trades<\/a> at a lower multiple, but it’s growth rates — while impressive — are still lower.<\/p>\n Broadcom is even cheaper relative to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) — which excludes all the near-term noise from its latest acquisitions. With an enterprise value of $1.98 trillion, it trades at 16 times next year’s adjusted EBITDA. Therefore, it’s still a great time to buy Broadcom as a long-term play on the booming AI market.<\/p>\n Should you buy stock in Broadcom right now? <\/p>\n Before you buy stock in\u00a0Broadcom, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Broadcom\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $417,305!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,293,148!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 19, 2026. <\/p>\n Leo Sun<\/a> has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/06\/6303e36bdb80b00588a162256382b6ab.jpeg\")
Image source: Getty Images. <\/p>\n