1 Unstoppable Stock to Buy Before It Joins Microsoft in the $3 Trillion Club
Harsh Chauhan, The Motley Fool
Tue, August 18, 2026 at 10:13 PM GMT+5:30
5 min read
- MSFT
+0.31% - AVGO
-2.88% - NVDA
-2.07%
Microsoft is the fourth-largest company in the world with a market cap of $3.5 trillion, reaching this position thanks to its diversified businesses that are benefiting from the growing adoption of artificial intelligence (AI)
From cloud computing to productivity to gaming, Microsoft offers a range of products and services that have been driving healthy growth for the company. However, there’s another tech stock that has been outperforming Microsoft over the past year
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Shares of Broadcom (NASDAQ: AVGO) have appreciated 28% over the past year, while Microsoft stock has dropped 7%. Broadcom is currently the eighth-largest company in the world with a $1.9 trillion market cap. I won’t be surprised to see this semiconductor giant rise substantially and join Microsoft in the $3 trillion market cap club. Let’s look at the reasons why
Broadcom’s growth is poised to accelerate nicely thanks to growing AI chip demand
Broadcom’s custom AI processors and networking chips put the company in a terrific position to deliver healthy growth. The company’s revenue in the first six months of fiscal 2026 increased by 39% year over year to $41.5 billion. However, Broadcom anticipates serious acceleration in growth in the recently concluded fiscal Q3
The company expects an 84% year-over-year jump in revenue for the quarter to $29.4 billion. Broadcom’s booming AI chip business will drive this outstanding growth. The company estimates that its AI revenue in fiscal Q3 increased by more than 200% year over year to $16 billion. The good news for investors is that Broadcom predicts further growth in its AI revenue in fiscal 2027
The chip designer sees its AI semiconductor revenue exceeding $100 billion next fiscal year, which would translate into a substantial uptick in its quarterly revenue run rate compared with this year. Broadcom management noted in its June earnings call that its long-term agreements with AI customers such as Anthropic, Meta Platforms, OpenAI, and Alphabet’s Google will play a central role in accelerating growth
In fact, Broadcom is confident of maintaining its robust AI revenue growth in fiscal 2028 as well, thanks to the long-term agreements it has in place with six core customers. For instance, Broadcom is on track to deploy 1 gigawatt (GW) of AI computing capacity for Anthropic this year, in partnership with Google. It anticipates the deployment for Anthropic to jump to more than 3 GW in 2027
