Most investors have heard of "doubling down" on stocks, which means increasing positions in their stocks that have dipped. However, sometimes it can be a good idea to "double up" on stocks -- buy more shares of holdings that have been on strong runs.
Let's look at two stocks to double up on right now.
1. Alphabet
Last year, Alphabet (GOOGL +0.06%) (GOOG 0.05%) was viewed as an artificial intelligence (AI) loser whose main Google search business was facing an existential crisis. Fast-forward a year, and that perception has changed. Alphabet is now seen as one of the top companies positioned for the AI era.
NASDAQ: GOOGL
Key Data Points
During this period, the company has integrated its Gemini large language model (LLM) across its suite of products -- including Google search and its Android smartphone operating system --and leveraged its cloud computing infrastructure for AI development. Its recently introduced Gemini 3 model has been widely praised, and rival OpenAI, which was the early AI model leader, has admitted Alphabet's AI innovation is likely to cause it some headwinds.
On top of that, the company's custom AI chips, called tensor processing units (TPUs), are now viewed as arguably the best alternative to Nvidia's (NVDA 1.83%) graphics processing units (GPUs) for AI workloads. As an ASIC (application-specific integrated circuit) designed specifically to run within Google Cloud's TensorFlow framework, these chips have both strong performance and are more energy-efficient and cost-effective. As the market shifts more toward inference, this becomes even more important.
The combination of having a world-class AI model and custom chips gives Alphabet a huge structural cost advantage, both with cloud computing and its AI/search business. It can run its own AI workload cheaper and more cost-effectively because of this, and get high margins in its cloud business. This is just something no other company has right now.
Moving forward, Alphabet looks like it will just become a bigger AI winner over time, and investors can still confidently add shares even after the stock's run-up.
Image source: Getty Images.
2. Broadcom
Another stock investors should feel confident doubling up on is Broadcom (AVGO +1.36%), the company that has helped Alphabet design its TPUs. While Alphabet's TPUs have been 10 years in the making and are in their seventh generation, their success is leading to other companies turning to Broadcom to help them make their own custom AI chips.
NASDAQ: AVGO
Key Data Points
Broadcom has said it sees a more than $60 billion market opportunity in fiscal 2027 from its three custom AI customers furthest along, which is about double its total revenue today. Meanwhile, it also recently got a $10 billion order from a fourth customer and signed a deal with OpenAI to deploy 10 gigawatts of its chips. One gigawatt of power equates to about $35 billion worth of chips, so that deal alone could be worth over $100 billion a year down the road.
In addition to custom chips, Broadcom is also a leader in data center networking. Its components, such as Ethernet switches and optical interconnects, help move data more quickly inside large AI clusters. This is another important and fast-growing market that is benefiting from the AI infrastructure buildout.
Broadcom also owns a large infrastructure software business that it has cobbled together through acquisitions. The most important of these businesses is virtualization company VMWare, whose software stack allows multiple virtual machines to run on a single server to help lower costs. Broadcom has transitioned VMWare to a subscription model and begun upselling customers to its VMware Cloud Foundation platform, which lets enterprise customers manage AI workloads across public clouds and their own on-premise data centers. This helps avoid cloud vendor lock-in and thus has seen solid growth with the AI boom.
Given the huge growth opportunity Broadcom has in front of it, especially with custom AI chips, the stock is one to double up on.
