Lyle Daly, The Motley Fool

Tue, Jun 24, 2025, 5:00 PM5 min read

• Broadcom is making custom artificial intelligence (AI) accelerators for several tech companies, including Alphabet and Meta Platforms.

• Alphabet has incorporated AI tech throughout its businesses, and shares are affordably priced right now.

• ASML manufactures machines that are crucial to semiconductor production.

• 10 stocks we like better than Broadcom ›

Artificial intelligence (AI) stocks are arguably the best growth opportunity available right now. Analysts have projected that the AI market will be worth trillions of dollars in the next five to 10 years. If you have $3,000, that's more than enough to invest in a few of the companies set to capitalize on the AI boom.

For the best results, you may want to split your money among companies that each focus on different parts of the AI market. Here are three options to consider.

Broadcom (NASDAQ: AVGO) is one of the largest semiconductor companies in the world. It creates AI chips that tech companies use in their data centers, similar (but not entirely identical) to GPU maker Nvidia.

Semiconductor stocks are an excellent AI investment opportunity. They provide the hardware necessary to run the most advanced AI models, and the semiconductor industry is growing to meet rising demand. The global semiconductor market grew by 19.7% in 2024, and is projected to grow another 11.2% in 2025.

Broadcom stands out from the competition because it makes customizable chips called AI accelerators. Some of the major hyperscalers, including Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Meta Platforms, use Broadcom to make their own custom AI chips. It's rumored that OpenAI is another company partnering with Broadcom for this reason. Broadcom CEO Hock Tan says that it has three hyperscaler customers expected to deploy 1 million AI accelerators in 2027.

Broadcom is on the pricey side, trading at a forward price-to-earnings (P/E) ratio of 38. That's common for AI companies, and based on Broadcom's momentum and earnings projections, this could still be a good time to invest.

It beat expectations in its second fiscal quarter of 2025, with revenue rising 20% year over year to $15 billion. AI revenue was particularly impressive, growing 46% year over year to $4.4 billion. Tan expects that to grow even more in the third quarter to $5.1 billion.

Tech conglomerate Alphabet is integrating AI throughout its products and services. Perhaps the most well-known example is the AI overviews that now sit at the top of Google search results. Alphabet has also added AI tools to Google Workspace (Gmail, Docs, Sheets, etc.), launched its Gemini chatbot, and uses AI for its self-driving car project, Waymo.