History Says Buying Growth Stocks During a Rotation Beats the Market. Here Are 2 to Buy Right Now.

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While it can be tempting to follow Wall Street's lead, investors are typically best served sticking with elite growth stocks during these rotations, not abandoning them.That's especially true when the underlying trends haven't changed. AI infrastructure demand is still growing rapidly, and semiconductors remain the foundation of the data center buildout. Even great stocks can get pulled down when investors reshuffle their portfolios, but that creates opportunity.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Two stocks worth pouncing on during this rotation are Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor Manufacturing (NYSE: TSM). Both sit at the heart of the AI buildout, and long-term trends are working in their favor. Meanwhile, the pressure in their stocks has created a great buying opportunity.With the AI infrastructure buildout trending in Broadcom's direction, now is the time to lean into the stock, not rotate out of it. The company is just at the beginning of two powerful trends that are set to power its growth for years to come.The first trend is the growing size of AI chip clusters. Cluster sizes are set to grow to over 1 million chips, which vastly increases the importance of data center networking. The reason for this is simple: If a company is spending tens of billions of dollars on chips, they need those chips to be constantly working together as a unit. If this isn't happening, then their investment is being underutilized.That's why managing this data workflow through networking components, like Ethernet switches, is so important, so chips don't sit idly by. Broadcom is the market leader in data center networking and is thus riding this trend.At the same time, Broadcom is also benefiting from the shift toward custom chips to help power AI workloads. The company is a leader in ASIC (application-specific integrated circuit) technology, helping its customers turn their chip designs into reality. It helped Alphabet develop its popular Tensor Processing Units (TPUs), and it forecast that its AI ASIC revenue will skyrocket to over $100 billion next fiscal year (that's 1.5x times its total company revenue from fiscal 2025!).Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 67,258.23 +368.97 (+0.55%)ETH-USD Ethereum USD 2,064.02 +12.50 (+0.61%)XRP-USD XRP USD 1.31 -0.00 (-0.18%)SOL-USD Solana USD 80.75 +0.47 (+0.59%)SOUN SoundHound AI, Inc. 6.78 +0.10 (+1.50%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 103.91 +17.56 (+20.34%)SBAC SBA Communications Corporation 204.04 +32.48 (+18.93%)YSS York Space Systems, Inc. 28.03 +4.43 (+18.77%)VSAT Viasat, Inc. 53.69 +8.46 (+18.70%)LUNR Intuitive Machines, Inc. 23.99 +3.75 (+18.53%)Top losersKNF Knife River Corporation 73.91 -8.20 (-9.99%)WIX Wix.com Ltd. 81.95 -8.55 (-9.45%)PBH Prestige Consumer Healthcare Inc. 52.48 -5.20 (-9.02%)ENPH Enphase Energy, Inc. 34.92 -3.36 (-8.78%)RGC Regencell Bioscience Holdings Limited 30.80 -2.92 (-8.66%)Most activeNVDA NVIDIA Corporation 177.39 +1.64 (+0.93%)INTC Intel Corporation 50.38 +2.35 (+4.89%)NOK Nokia Oyj 8.82 +0.55 (+6.65%)PLUG Plug Power Inc. 2.4100 +0.1600 (+7.11%)TSLA Tesla, Inc. 360.59 -20.67 (-5.42%)Top economic eventsEarnings eventsMy earnings eventsEarnings events