Broadcom, Nvidia, Nebius: 3 AI Stocks to Buy Now
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- Broadcom, Nvidia, and Nebius are pitched as 'genius buys' in AI infrastructure, with the author arguing investors should target component suppliers rather than the still-private generative AI companies
- Nvidia makes the industry-standard GPUs for AI computing, while Broadcom designs custom AI chips for hyperscalers that complement rather than compete with Nvidia's hardware
- Data center spending is projected to reach a cumulative $7 trillion by 2030 per McKinsey, with Nvidia estimating annual global data center capex of $3 trillion to $4 trillion by 2030
- Broadcom and Nvidia are both trading cheaply on next fiscal year's projected earnings, with the market effectively pricing in only a successful 2026, per the author
- Nebius, a neocloud company backed by Nvidia with priority access to cutting-edge Nvidia products, expanded from 2 data center sites in 2024 to 7 in 2025, targeting 16 by end of 2026
- Nebius posted Q4 core AI revenue up 802% year over year, with management targeting a $7 billion to $9 billion annual run rate by end of 2026, up from $1.25 billion at end of 2025
- Nebius stock is down more than 20% from its all-time high despite the growth trajectory, a selloff the author attributes to broader concerns about the AI buildout
Why it matters: The author is calling a market mispricing on three AI infrastructure names, arguing investors are pricing in only a 2026 success story while ignoring multi-year data center spending projected to total trillions. For retail investors, the pitch is that buying the picks-and-shovels plays—GPU maker Nvidia, custom-chip designer Broadcom, and Nvidia-backed neocloud Nebius—captures AI growth without having to pick which private model company wins. Nebius's 20%+ drop from highs despite 802% revenue growth is the most actionable contrarian signal in the piece.
