Prediction: 2 Stocks That Will Be Worth More Than Broadcom 5 Years From Now
2026-10-09 11:15
•Micah Zimmerman •The Motley Fool
••••• •••• Axe Cap view
Two AI Stocks That Could Surpass Broadcom in Five Years
AMD and Palantir are positioned to outgrow Broadcom's $1.7 trillion valuation thanks to AI-driven expansion.
Broadcom’s $1.7 trillion valuation stands as a towering benchmark in the AI semiconductor space, but it’s not untouchable. AMD’s recent $1 trillion milestone, boosted by a massive GPU capacity deal with OpenAI, sets them on a credible path to about 70% growth over five years. Their access to cutting-edge AI chip production could disrupt the sector’s status quo. Palantir’s even bolder, boasting near-150% growth in its commercial AI software segment alone. With $2.1 billion in fresh U.S. contracts and a strong software moat, it’s a clear bet on data-driven AI analytics outpacing traditional chipmakers. For JSE investors, this means watching the USD/ZAR closely as increasing tech demand could strengthen the rand through foreign inflows. Meanwhile, local heavyweights like Naspers and Prosus might indirectly benefit as AI adoption from global giants expands. That said, both AMD and Palantir depend heavily on flawless execution and sustained AI growth momentum. Missed contracts or technology pivots could derail these lofty ambitions. this is just our opinion and not financial advice
Buy AMD with an eye on its AI GPU upside and watch Palantir for a compelling, though riskier, commercial software play. Keep an eye on USD/ZAR movements as dollar strength could pressure returns. Avoid chasing Broadcom at current valuations.
- AMD
- PLTR
- USD/ZAR
- Execution risk on AMD’s production scale-up
- Palantir’s ability to sustain hyper-growth
- USD strength negatively impacting rand-based returns
6/10
The article predicts that Advanced Micro Devices (AMD) and Palantir Technologies will surpass Broadcom's $1.7 trillion valuation within five years. AMD needs approximately 70% growth, supported by its major OpenAI deal for GPU capacity. Palantir would need to roughly quadruple from its current $456 billion valuation, driven by exceptional commercial revenue growth of 149% year-over-year. Both stocks carry execution risks but are positioned to benefit from AI market expansion.
Our take is based on reporting first published by The Motley Fool.