There are no signs that artificial intelligence (AI) data center development will slow down any time soon. That’s good news for major AI chip makers. Let’s look at two monster AI stocks to buy and hold for the next five years.
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NVIDIA (NASDAQ: NVDA) is the dominant player in the AI ​​infrastructure. Its graphics processing units (GPUs) remain the main chips used to train AI models. Through its CUDA software platform, on which almost all of the fundamental AI code was written, and its proprietary NVLink interconnect systems, which allow its chips to communicate with each other faster, allowing them to essentially act as one powerful unit, it has created a wide moat in the GPU space.
With only five companies willing to spend $700 billion on AI infrastructure this year and predictions that spending will increase through the end of the decade, Nvidia is very well positioned to continue seeing outsized growth in the coming years.
Meanwhile, the company is not standing still. Flush with cash, Nvidia has been making investments across the AI ​​ecosystem. One of their smartest moves could be licensing Groq’s technology and hiring its employees. This should prepare Nvidia to better compete in the inference market, where its CUDA moat is not as wide.
Another semiconductor company to own for the next five years is Broadcom (NASDAQ:AVGO). The company is a leader in ASIC (application specific integrated circuit) technology, where it helps customers create custom wired AI chips designed to handle specific tasks. While these chips don’t have the flexibility or adaptability of GPUs, they tend to perform the tasks they were designed for very well while being more power efficient.
Broadcom helped Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) Build your highly regarded Tensor Processing Units (TPUs), which run most of your internal workflows. Meanwhile, Alphabet is starting to allow large customers to use its TPUs for their own AI workloads through Google Cloud. As a result, Anthropic has placed a $21 billion TPU order through Broadcom that will be delivered this year. Broadcom’s success with Alphabet’s TPUs has also led other companies to turn to it to help them develop their own custom AI ASICs.
After generating just over $20 billion in total AI revenue in fiscal 2025, including network revenue, Broadcom will experience explosive growth in the coming years. citi group Analysts have projected that the company’s AI revenue could quintuple to $100 billion in fiscal 2027. Coupled with its networking opportunity, where its Ethernet switches maintain a strong position in data centers, Broadcom appears poised to be a big winner in the coming years.