Artificial intelligence (AI) is just starting to reshape the world we live in, making it one of the best places for people to invest in over the next few years. Let's look at two AI stocks for investors to buy right now for the next five years.
Broadcom: A custom AI chip leader
In her recent Big Ideas for 2026, famed portfolio manager Cathie Wood of Ark Investment Management predicted that AI infrastructure spending would nearly triple by 2030. She also forecast that networking growth would outpace compute growth and that AI ASICs (application-specific integrated circuits) would start to take some meaningful share from graphics processing units (GPUs). If those predictions are accurate, Broadcom (AVGO +0.80%) will be a top stock to own over the next five years.
NASDAQ: AVGO
Key Data Points
Broadcom is a leader in both networking and ASIC technology. Its networking portfolio is vital in helping AI data center operators manage data flow, and as AI clusters grow larger, networking becomes even more important. This is a strong area of growth for the company, but not its biggest opportunity. That would be helping customers create their own custom AI chips.
Broadcom helped Alphabet develop its highly successful Tensor Processing Units (TPUs), and now other customers, including OpenAI, have turned to it to help them develop their own custom AI ASICs. This is a huge opportunity, with Citigroup analysts predicting that it could power Broadcom's AI revenue to go from around $20 billion last fiscal year to $100 billion in fiscal 2027. That's incredible growth over a two-year period and one of the biggest reasons to own this monster stock over the next five years.
Image source: Getty Images.
Taiwan Semiconductor Manufacturing: A near-monopoly
With AI infrastructure spending predicted to continue to rise, Taiwan Semiconductor Manufacturing (TSM +1.46%) continues to find itself in an enviable position. The foundry is the only chip manufacturer that has proven it can make advanced logic chips at scale with high yields. As such, this has made it the go-to partner for chip designers, and the company is set to aggressively increase capacity over the coming years to help meet growing demand.
NYSE: TSM
Key Data Points
Meanwhile, with a near-monopoly on making advanced chips, the company has established strong pricing power, which has also helped push up its gross margins. According to reports, TSMC has already informed its customers of its plans for a four-year hike schedule. Between strong pricing and increasing demand, TSMC has projected that its AI revenue will increase at an annual rate of more than 50% through 2029.
That makes it a monster growth stock you want to own over the next five years.
