Nvidia, Broadcom, and Amazon are all firmly committed to the AI boom for the long term.
Over the past decade, the artificial intelligence (AI) market has expanded as companies introduce faster, more efficient, and more intelligent AI applications. By consuming and analyzing large amounts of data, these applications have enabled users to identify trends, make informed predictions, and make smarter data-driven decisions.
The rise of generative AI chatbots, including OpenAI's ChatGPT, has captured mainstream users while disrupting search engines and information-driven industries. The increasing use of AI-generated text, images, and videos is having a major impact on creative fields. At the same time, AI-powered algorithms have streamlined digital ad delivery and digital media consumption.
Image source: Getty Images.
This boom has created strong tailwinds for AI chipmakers, AI software makers, cloud infrastructure providers, and data center operators. But the market should continue to evolve and expand as AI applications replace or augment more jobs.
Grand View Research expects the global AI market to grow at a CAGR of 30.6% from 2026 to 2033. To take full advantage of that growth cycle, investors should buy the top three AI stocks on the market. Nvidia (NVDA 0.05%), broadcom (AVGO +3.79%)and Amazon (AMZN +0.44%).
Nvidia
Nvidia sells the perfect pick and shovel for the AI gold rush. The company is the world's largest manufacturer of discrete GPUs for PCs and servers. While it once derived most of its revenue from the gaming PC market, data center GPUs now account for the bulk of its sales.
Today's changes
(-0.05%) $-0.09
current price
$184.95
Key data points
Market capitalization
$4.5 trillion
daily range
$183.70 – $186.34
52 week range
$86.62 – $212.19
volume
3.8M
average volume
187 million
gross profit
70.05%
dividend yield
0.02%
Nvidia's high-end data center GPUs accelerate complex machine learning and AI workloads by performing massive floating-point and integer operations across parallel processes. This makes them faster and more energy efficient than standalone CPUs, which are optimized for sequential workloads rather than massively parallel computing.
Nvidia also locks its clients into CUDA (Compute Unified Device Architecture), its proprietary programming platform optimized for its chips. It currently controls over 90% of the data center GPU market, and its first-mover advantage, best-in-class reputation, and tenacious software ecosystem should allow it to stay well ahead of smaller challengers such as: AMD.
Analysts expect Nvidia's revenue and earnings per share (EPS) to grow at a CAGR of 46% and 45%, respectively, starting in fiscal 2025 (ending last January) and 2028. The company's stock is still reasonably valued at 26 times expected 2027 earnings, and it will continue to be a leader in the rapidly growing AI market for some time to come.
broadcom
Broadcom — a leading manufacturer of wireless, storage, networking, optical, mobile and radio frequency chips — doesn't sell high-end data center GPUs like Nvidia. But data centers are ramping up purchases of Broadcom's AI-oriented networking, optical, and custom accelerator chips to upgrade their infrastructure to handle the latest AI applications.
Today's changes
(3.79%) $12.59
current price
$345.07
Key data points
Market capitalization
$1.6 trillion
daily range
$333.62 – $347.36
52 week range
$138.10 – $414.61
volume
946K
average volume
29M
gross profit
64.71%
dividend yield
0.73%
In fiscal 2025, which ended last November, Broadcom's AI-related revenue rose 65% to $20 billion and accounted for 31% of sales. CEO Hock Tan predicted in the latest conference call that AI spending momentum will “accelerate in 2026” and continue to offset slower growth in non-AI chip and infrastructure software businesses.
Analysts expect Broadcom's revenue and EPS to grow at a CAGR of 37% and 48%, respectively, from FY2025 to FY2028. The company's AI business should drive most of that growth. Still, the company's non-AI chip and infrastructure software businesses should continue to expand as interest rates fall and the broader macroeconomic environment stabilizes. The company's stock price doesn't look overheated at 30 times expected fiscal year 2027 earnings, and it's likely to acquire more companies as it has over the past decade to strengthen its core business.
Amazon
Amazon, the world's largest e-commerce and cloud infrastructure company, will also benefit from the growth of the AI market. More AI-oriented companies are expected to increase spending on Amazon Web Services (AWS), the cloud infrastructure platform that hosts modern AI applications. We're supporting that growing demand with new custom AI accelerators and purpose-built platforms for developing machine learning, generative AI, and agent AI applications. Amazon's e-commerce marketplace also uses AI algorithms to power recommendations and integrated ads.
Today's changes
(0.44%) $1.09
current price
$247.38
Key data points
Market capitalization
$2.6 trillion
daily range
$242.24 – $247.86
52 week range
$161.38 -$258.60
volume
35M
average volume
46M
gross profit
50.05%
According to Canalys, AWS controls 32% of the global cloud infrastructure market in the second quarter of 2025, giving it a significant lead. microsoftof Azure (22%) alphabetof Google Cloud (11%). The growth of its high-margin cloud business will allow Amazon to expand its low-margin retail business by offering discounts, free shipping options, streaming media and other loss-making perks.
Analysts expect Amazon's revenue and EPS to grow at a CAGR of 12% and 20%, respectively, from 2024 to 2027. While it may not seem like a bargain at 31x next year's earnings, it's one of the easiest ways to profit from the growth of the cloud, AI, and e-commerce markets.
