The Market Is Panicking, But You Should Keep Buying Shares of This Artificial Intelligence (AI) Powerhouse
Yahoo Finance ·
The stock market is going through a bit of a panic moment right now, selling off many artificial intelligence (AI) stocks that were loved just weeks ago. One stock that has been hit particularly hard is Broadcom ( AVGO 3.39% ) . Broadcom was one of the top stocks to own in 2026 through the beginning of June, but a poorly received earnings report and a negative AI market sentiment have caused the stock to sell off. At its peak, Broadcom was up about 40% for the year. Now it's up about 9% at the time of this writing. However, I think now is the perfect opportunity to pounce, and Broadcom's future looks brighter than most . While Broadcom does a lot of things as a company, investors' biggest focus is its custom AI chip business. Most companies use graphics processing units (GPUs) for AI, which are powerful and flexible computing units that can handle just about any workload thrown at them. However, those units aren't always the most cost-effective choice, as their flexibility is useless if a computing unit only sees one type of workload during its lifespan. To remedy this problem, Broadcom is using its chip design expertise and partnering with various AI companies to create its own chips perfectly suited for the workloads they run. These chips often outperform GPUs on a head-to-head basis and often cost less. They're starting to become wildly popular, and 2027 could be the year we see them truly take off.
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