Prediction: The Nasdaq's Artificial Intelligence (AI) Rally Has More Room to Run. Here Are the Best Growth Stocks to Own.

5 hours ago 3

Harsh Chauhan, The Motley Fool

Tue, May 5, 2026 astatine 6:50 AM CDT 5 min read

The Nasdaq Composite scale has been connected a stellar tally implicit the past month, gaining 14% arsenic of this writing. Investors look to person regained assurance successful exertion stocks, pursuing the turmoil caused by the Middle East struggle successful March.

The ongoing negotiations betwixt the U.S. and Iran to reopen the Strait of Hormuz and the anticipation of a bid program to extremity the warfare person positively impacted tech stocks of late. It won't beryllium astonishing to spot the Nasdaq's rally summation momentum during the ongoing net season. That's due to the fact that the tech assemblage is expected to timepiece 45% net maturation successful Q1.

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The net maturation anticipation of the tech assemblage jumped implicit 10% since the opening of the year, driven chiefly by the beardown maturation that artificial quality (AI) companies person been clocking this year. That's wherefore it is simply a bully clip to bargain apical AI stocks, specified arsenic Broadcom (NASDAQ: AVGO) and ASML (NASDAQ: ASML), earlier the Nasdaq heads higher.

Image source: ASML.

Custom AI spot request is going to beryllium a immense tailwind for Broadcom

Broadcom banal has changeable up an awesome 34% implicit the past month. It's rapidly becoming 1 of the apical AI spot stocks to bargain owed to booming request for its application-specific integrated circuits (ASICs), which are customized AI processors deployed successful information centers to tally AI workloads cost-effectively.

These customized AI chips person gained prominence for their ratio successful performing AI inference. Custom chips designed for AI inference tin little operating costs, trim powerfulness consumption, and execute their intended tasks much efficiently. This explains wherefore Broadcom saw robust request for customized AI processors from Meta Platforms, Anthropic, and OpenAI.

Broadcom announced successful April that it is deepening its narration with Meta to make customized AI chips for its AI information centers. Before that, AI start-up Anthropic announced that it volition physique AI infrastructure successful collaboration with Broadcom and Google (Alphabet) done 2031. These deals archer america wherefore Broadcom is assured it tin execute much than $100 cardinal successful AI spot gross successful 2027.

That points toward a important acceleration, arsenic Broadcom generated $8.4 cardinal successful AI spot gross successful the archetypal 4th of fiscal 2026 (which ended connected Feb. 1). So, it is casual to spot wherefore analysts person go bullish astir Broadcom's net maturation and are expecting its bottommost enactment to treble successful conscionable 2 years.

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