Nvidia stock is a go-to stock for tech investors because the company’s AI-enabled GPUs are largely driving the AI revolution.
Broadcom stock is a top buy thanks largely to strong demand for the company’s custom artificial intelligence chips.
TSMC stock is a top buy as the world’s largest chip foundry has profited heavily from strong demand for artificial intelligence chips, including GPUs and custom chips.
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As in 2024, artificial intelligence (AI) stocks as a group have been among the best performers in 2025.
As of December 23, three AI stocks that have been big winners in 2025 and that I believe will be big winners again in 2026 are NVIDIA(NASDAQ: NVDA), Broadcom(NASDAQ:AVGO)and TSMCor TSM (NYSE:TSM).
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Stocks are ranked by 5-year return.
company
Market value
forward price-to-earnings ratio
Wall Street expects 5-year earnings per share annual growth rate
Data source: Yahoo! Finance and YCharts. P/E = price-to-earnings ratio. EPS = earnings per share. Data as of December 23, 2025.
Nvidia’s graphics processing unit (GPU) is its flagship semiconductor and is considered the gold standard for training artificial intelligence (AI) models and deploying AI applications.
The company’s data center platform has performed well for quite some time. But soon after OpenAI released the ChatGPT chatbot in late 2022, demand for its AI-enabled products (GPUs and high-performance network products) began to surge. The event showcased the amazing capabilities of generative AI to company leaders and the public.
In late October, at the company’s GTC (GPU Technology Conference) in Washington, D.C., CEO Jensen Huang said management was “aware” that demand for its key data center technology would reach $500 billion over the next five quarters. Demand averaging $100 billion per quarter is truly astonishing. For context, in its fiscal third quarter, which ended in October, Nvidia’s total revenue was $57 billion, $51.2 billion of which came from data center platforms.
Broadcom develops semiconductors for a variety of end markets and develops infrastructure software.
The company’s strong growth was driven by strong demand for its custom AI-specific integrated circuits (ASICs) and Ethernet networking products for data centers. Its acquisition of software maker VMware in late 2023 proved to be a smart move, as that business is also growing well.
Broadcom is a top partner for large technology companies seeking custom ASICs. As the name suggests, these chips are designed for specific applications. These include internal use and, in some cases, the availability of cloud computing services. In comparison, Nvidia’s GPUs can be considered more general-purpose AI chips. Both GPUs and ASICs are in demand, so investors don’t have to worry about one chip completely outperforming the other.
TSMC is the world’s largest chip foundry. That means it makes various types of chips for companies that outsource all or part of the manufacturing of the chips it designs.
TSM, the world’s largest maker of artificial intelligence chips, has experienced significant financial growth in recent years, driven by surging demand for these chips.
TSM’s customers include nearly all major chip companies, such as Nvidia, Broadcom and AMD AMD (AMD) is Nvidia’s main competitor in the artificial intelligence GPU market. In addition, it makes chips, including artificial intelligence chips, for large technology companies that design their own chips. This includes appleis widely considered the company’s largest customer, although some Wall Street analysts expect Nvidia to soon replace Apple as TSM’s largest customer.
Another bonus for some investors is that TSM pays a healthy dividend for the technology company. As of the close on December 23, the dividend yield was 1.13%.
Before buying Nvidia stock, consider the following factors:
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Beth McKenna works at Nvidia. The Motley Fool owns and recommends Advanced Micro Devices, Apple, Nvidia and Taiwan Semiconductor Manufacturing. “Motley Fool” recommends Broadcom. The Motley Fool has a disclosure policy.
Prediction: These 3 Artificial Intelligence (AI) Stocks Will Be Big Winners Again in 2026 Originally published by The Motley Fool
