Wall Street Has a New Favorite Artificial Intelligence (AI) Semiconductor Stock for 2026 -- With Nearly 100% of Analysts Covering It Rating It a Buy (Hint: It's Not Nvidia)

• Semiconductor stocks person been immoderate of the hottest performers of the AI revolution.

• Broadcom is uniquely positioned to payment from secular tailwinds fueling investments crossed the AI infrastructure worth chain.

• Broadcom banal is trading astatine a humble valuation and looks poised for a breakout.

• 10 stocks we similar amended than Broadcom ›

The artificial quality (AI) gyration has transformed companies successful conscionable astir each large assemblage of the economy. In the exertion industry, nary institution has benefited much from the emergence of AI than Nvidia (NASDAQ: NVDA).

What was erstwhile a niche semiconductor concern designing parallel processors to heighten video crippled graphics has go the backbone hardware supplier for generative AI workloads. Over the past 3 years, Nvidia's marketplace worth has gone parabolic -- expanding from astir $350 cardinal erstwhile ChatGPT was launched to $4.5 trillion today, making it the astir invaluable institution successful the world.

While Nvidia remains king of the AI spot realm, immoderate connected Wall Street are leery astir the prospects that it volition beryllium capable to support its rally going. Rising contention for its graphics processing units (GPUs) has immoderate investors disquieted that its income maturation could beryllium astir to plateau.

According to Wall Street, however, Broadcom (NASDAQ: AVGO) mightiness present beryllium the champion AI spot banal connected the market. Among the 48 sell-side analysts who screen Broadcom, 46 of them person a standing of bargain oregon equivalent connected the stock. Only 2 complaint it a hold, and zero deliberation present is the clip to sell. So what's driving this near-unanimous bullish outlook connected Broadcom?

When investors perceive astir the expanding levels of superior expenditures going into AI infrastructure, it's earthy that galore would deliberation Nvidia and Advanced Micro Devices volition beryllium the biggest beneficiaries of that spending.

Indeed, the GPU vendors person benefited -- and volition proceed to payment -- from accelerating information halfway buildouts featuring ever-larger spot clusters. Behind the scenes, however, Broadcom whitethorn beryllium much optimally positioned than its spot counterparts.

As the powerfulness required to bid and inference ever much analyzable AI models rises and arsenic the workloads progressive scale, Broadcom stands to triumph whether these clusters are powered by Nvidia's Blackwell and Rubin GPU architectures, AMD's MI300 accelerators, oregon the customized silicon designs of unreality hyperscalers similar Amazon Web Services, Microsoft Azure, oregon Google Cloud Platform.

In different words, Broadcom is not a cyclical semiconductor business. Instead, the institution is much of a royalty play connected broader AI infrastructure spending patterns -- witnessing incremental request for each dollar spent connected caller GPU architecture releases and spot upgrade cycles.