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 While Broadcom does a lot of things as a company, investors’ biggest focus is its custom AI chip business. Most companies use graphics processing units (GPUs) for AI, which are powerful and flexible computing units that can handle just about any workload thrown at them. However, those units aren’t always the most cost-effective choice, as their flexibility is useless if a computing unit only sees one type of workload during its lifespan. <\/p>\n To remedy this problem, Broadcom is using its chip design expertise and partnering with various AI companies to create its own chips perfectly suited for the workloads they run. These chips often outperform GPUs on a head-to-head basis and often cost less. They’re starting to become wildly popular, and 2027 could be the year we see them truly take off. <\/p>\n During its latest quarter, AI semiconductor revenue totaled $10.8 billion, up 143% year over year. However, that business unit is expected to produce more than $100 billion in revenue during 2027. That’s major growth, and it’s fueled by several of its key AI clients’ chips reaching production. <\/p>\n Broadcom called out four key partners in its AI chip business: Alphabet, Meta Platforms, Anthropic, and OpenAI. Right now, Alphabet’s TPU (Tensor Processing Unit) is the only chip that’s really in production, as the other three companies haven’t quite gotten there yet. All of them expect to reach that point in 2027, thus the major growth boost. <\/p>\n This strong outlook is why I’m excited about Broadcom’s stock, as it could transform into a major AI powerhouse over the next year. So, any short-sighted viewpoint regarding Broadcom’s stock is misplaced. Any time there’s a sell-off (like there is now) represents a fantastic opportunity to buy the dip on one of the most promising AI stocks for this year and next<\/a>. <\/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’t 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’d have $398,052!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,181,688!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\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 27, 2026. <\/p>\n Keithen Drury<\/a> has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Meta Platforms. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Broadcom’s custom AI chip business is booming <\/p>\n