Artificial intelligence (AI) continues to be the biggest driving force in the stock market today. While investors are still grappling with which stocks will be AI winners and losers, this trend remains in focus. Let’s look at two stocks that look like no-brainer AI winners.
The AI infrastructure market is already starting to show signs of shifting in a way that benefits Broadcom (NASDAQ: AVGO). While Nvidia continues to dominate the market with its graphics processing units (GPUs), there is an increasing desire among hyperscalers (owners of large data centers) to find cheaper alternatives, especially when it comes to inference, which is an ongoing cost every time AI answers a user’s query or performs a task.
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One of the best ways to do this is with custom chips called ASICs (application-specific integrated circuits). Unlike GPUs that can be programmed for various functions, ASICs are hardwired for specific tasks. As such, they generally perform them very well, while also being more energy efficient. Broadcom is the leader in ASIC technology, where it provides the building blocks to turn its customers’ designs into actual chips that can be produced in mass quantities.
The company has already found huge success by co-developing Alphabet’s popular Tensor Processing Units (TPUs), which are a growing source of revenue. Meanwhile, other companies have also turned to it for AI ASIC services. Broadcom is projecting over $100 billion in AI ASIC sales in fiscal 2027, which is more than 1.5 times its total revenue in fiscal 2025 (Broadcom’s fiscal year ends in November). Meanwhile, it also has a very fast-growing data center networking business to go along with a solid software business led by VMware.
Given its explosive growth potential, Broadcom looks like a no-brainer AI stock to buy.
AI infrastructure is not the only way companies are benefiting from AI. Meta Platforms (NASDAQ: META) has been one of the best at applying AI to drive growth in its core business. The company saw its revenue climb 24% last quarter, while projecting it will accelerate in the first quarter of 2026.
This strong growth stems from Meta’s use of AI to improve its recommendation engine and providing new AI-powered tools to its advertisers. With AI, the company is better able to feed users the content they are most interested in, which keeps them on its apps longer and allows it to show more ads. Meanwhile, its AI-based tools are helping companies create better campaigns and convert users to paying customers, which is leading to higher ad prices.
