Is Broadcom 1 of the Best AI Stocks for 2026? | The Motley Fool

Is Broadcom 1 of the Best AI Stocks for 2026? | The Motley Fool

By Keithen Drury
Publication Date: 2026-01-05 18:00:00

Broadcom’s chips are increasing in popularity.

Few companies had as successful a 2025 as Broadcom (AVGO 1.90%). The stock rose an impressive 50%, but there could be plenty of room to run with the industry that it’s in.

While Broadcom has a wide product lineup, investors are most excited about one thing: custom artificial intelligence (AI) accelerator chips. In the right application, these can outperform the best products from Nvidia at a lower price point.

That’s an extremely attractive proposition, and is one that more companies are starting to explore. But does that make Broadcom one of the best AI stocks for 2026?

Image source: Getty Images.

Broadcom’s growth could be impressive in 2026

Looking at Broadcom’s company-wide performance doesn’t yield such impressive results. In its fiscal 2025’s fourth quarter (ended Nov. 2), revenue rose 28% year over year, and diluted earnings per share (EPS) increased by 37%. Those are solid results, but other companies in the big tech realm are…