2. Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) ranks among the best performing S&P 500 stocks in the last 10 years. On February 5, Jefferies reaffirmed its Buy rating and $500 price target for Broadcom Inc. (NASDAQ:AVGO), highlighting the company’s solid standing in the AI and networking areas. The firm cited Google’s capital expenditure projections as evidence of a “significant vote of confidence” in increased AI spending, coupled with fundraising efforts from other firms such as OpenAI, xAI, and Oracle.
Jefferies acknowledged concerns regarding Broadcom’s custom on-package (COT) operation, claiming that Broadcom Inc. (NASDAQ:AVGO) is “well ahead” of market competitor MediaTek on v8 chips and is going to preserve this lead with v9 chips in terms of scheduling and performance.
According to Jefferies’ bottom-up forecast, Google will sell 6 million total units in calendar 2027, with Broadcom Inc. (NASDAQ:AVGO) receiving 85-90% of the revenue, and the firm adds that there is “room for that overall number to move up further.”
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor and infrastructure software company. It designs and supplies products, including custom chips, networking solutions, and enterprise software used across industries such as cloud computing, telecommunications, and data centers.
1. NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) ranks among the best performing S&P 500 stocks in the last 10 years. On February 26, UBS maintained its Buy rating and $245 price target for NVIDIA Corporation (NASDAQ:NVDA), citing robust demand and revenue forecasts. The firm pointed out that the company’s demand comments were perhaps the most optimistic it had encountered, with the backlog now running into the year 2027.
NVIDIA Corporation (NASDAQ:NVDA) reported top-notch fourth-quarter fiscal 2026 earnings of $68 billion, exceeding average projections by about $2 billion. The company also reported adjusted earnings per share of $1.62, which surpassed forecasts by $0.08.
After growing by more than 60% in the quarter before, NVIDIA’s obligations to purchase inventory nearly doubled quarter-over-quarter. According to UBS, this leaves enough room for quarterly revenue to reach about $100 billion in the quarters ahead. The firm revised its earnings forecasts as well, increasing projected earnings per share for calendar 2027 and 2028 to about $12.70 and $14.80, respectively.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company. It designs and develops graphics processing units and related technologies used in gaming, data centers, artificial intelligence, and autonomous systems.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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