Move over, Nvidia. Wall Street has a new favorite artificial intelligence (AI) semiconductor stock for 2026 - and it's not the industry titan you might expect. What this really means is that there's a once-in-a-decade investment opportunity brewing in the AI chip space, and savvy investors would be wise to take notice.
Broadcom: The Overlooked AI Powerhouse
While Nvidia (NVDA) has long been the go-to name for AI hardware, the latest data suggests that another chip stock could be poised for a meteoric rise in the coming years. According to a recent report from The Motley Fool, Broadcom is emerging as Wall Street's new favorite in the AI semiconductor space, with nearly 100% of analysts covering the stock rating it a "buy."
The bigger picture here is that Broadcom is uniquely positioned to benefit from the secular tailwinds fueling investments across the AI infrastructure value chain. As CNBC reported, the company recently raised its spending forecast, signaling that the AI trade is back on and that Broadcom is well-placed to capitalize.
A Potential 32% Upside
Wall Street analysts are bullish on Broadcom's prospects, with some projecting the stock could surge as much as 32% in the next 12 months. As The Motley Fool reported, the company is trading at a modest valuation and looks primed for a breakout as the AI revolution continues to unfold.
Of course, no investment is without risk, and investors would be wise to do their own due diligence before jumping in. But with the AI train showing no signs of slowing down, Broadcom could be a dark horse candidate to join the likes of Nvidia, Taiwan Semiconductor, and Micron Technology in the trillion-dollar club.