Here039s

Broadcom (NASDAQ: AVGO) is playing a key role in supplying data centers with custom chips and networking products. Strong revenue and free-cash-flow growth have pushed the stock to new highs this year, with shares up 54% year to date through market close Oct. 13.

The stock is up more than 500% since the end of 2022, when the artificial intelligence (AI) boom started. However, there are important reasons why the stock will likely climb higher in 2026 and beyond.

Image source: Getty Images.

Broadcom is printing cash

Broadcom has a long history of delivering profitable growth, which has led to market-beating returns. Its free-cash-flow growth has accelerated over the last year. Free cash flow through the first three quarters of fiscal 2025 was 40% larger than the year-ago period. This shows Broadcom’s margins expanding from higher sales of custom AI accelerators and strong growth from its software business.

Its order backlog hit a record $110 billion, which is significantly higher than its trailing-12-month revenue of $60 billion. Spending on AI infrastructure by hyperscalers is expected to reach $350 billion this year, meaning more money could be headed Broadcom’s way. Data center spending is expected to grow into the trillions by the end of the decade.

Broadcom’s cash-rich business should fuel investment in more innovation that rewards shareholders. This is a quality semiconductor stock to profit off of the AI boom.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Source link

Nvidia‘s (NASDAQ: NVDA) powerful chips are used in almost every data center and cloud service provider for the most advanced artificial intelligence (AI) workloads. Its stock has rocketed over 30,000% over the last 10 years, making Nvidia the most valuable company in the world with a market cap over $4.6 trillion at the time of writing.

But Nvidia’s management mentioned one number on the company’s last earnings call that stunned analysts, and it’s why the stock is still a no-brainer buy.

Image source: Nvidia.

A multitrillion-dollar opportunity

During Nvidia’s fiscal second-quarter 2026 earnings call, CFO Colette Kress said, “We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade. The scale and scope of these build-outs present significant long-term growth opportunities for Nvidia.”

This statement further builds the case that Wall Street is still underestimating the magnitude of the AI opportunity for Nvidia. AI model builders like OpenAI, which use Nvidia’s chips, are seeing more demand than they have computing capacity. This is why there has been a rush to secure more data center capacity this year by tech companies.

Despite Nvidia‘s data center revenue growing 56% year over year last quarter, investors can still buy the stock at a very reasonable earnings multiple of 30 based on next year’s earnings estimate.

John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Source link

Key Points

• Every growth investor should be closely monitoring AI stocks.

• If I could only buy one AI stock, this would be it.

• 10 stocks we like better than Nvidia ›

When it comes to growth investing, finding businesses that can grow by leaps and bounds for decades to come is a dream. But that’s what many popular artificial intelligence (AI) stocks today offer. If I could only buy one AI stock, the GPU manufacturer below would be it.

Nvidia is my top choice for every growth investor

In my opinion, every growth investor should be paying close attention to Nvidia (NASDAQ: NVDA). In fact, I think it should top your watch list of companies to consider investing in. That’s because the company sits at the center of the AI revolution. The United Nations predicts AI spending will grow by more than 30% annually for the next decade. Most longer-term forecasts believe this growth should be sustained for many years to follow. Being at the center of this industry, therefore, is a great place to be.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

What makes Nvidia so special? It’s the leading producer of GPUs — specialized components that make most artificial intelligence and machine learning tasks possible — for the entire AI industry. Many estimates believe the company has a market share of 90% or more. This dominant market share is fueled by early investment and a powerful software platform that keeps users embedded within Nvidia’s ecosystem.

Nvidia is facing some short-term headwinds due to the ongoing trade war between the U.S. and China. But long term, there’s no denying that the firm will benefit immensely from rising AI spending, a trend that could persist for quite a while. If you’re new to growth investing, Nvidia needs to be one of the first companies you consider for your portfolio.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $640,916!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,090,012!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Source link

Key Points

• Some analysts are predicting that it could hit $4 this year.

• The number of functions for XRP keeps expanding.

• XRP continues to outperform the benchmark cryptocurrency Bitcoin.

• 10 stocks we like better than XRP ›

If you’re looking for a high-risk, high-reward cryptocurrency, look no further than XRP (CRYPTO: XRP). After soaring in value in the early part of 2025, it tumbled during the spring, only to mount a stunning recovery in July. However, during August, XRP has again dipped and now trades for about $3.

So is it once again time to buy the dip on XRP? Here are three reasons you should consider holding on to your XRP.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

XRP’s legal problems are in the rearview mirror

In early August, Ripple, the company behind the XRP token, finally settled its long-running litigation with the Securities and Exchange Commission (SEC). In December 2020, the SEC alleged that XRP was actually a security, and not a cryptocurrency, and XRP had been under a cloud of regulatory uncertainty ever since.

To end the case, Ripple agreed to pay a penalty of $125 million to the SEC in August, but at least it can get back to business as usual. That’s huge news for Ripple because its U.S.-based operations have been largely put on ice for the better part of five years. Already, there are signs of a return to form for the company with the launch of new services in 2025.

The utility narrative around XRP is building

When it comes to evaluating cryptocurrencies, a major factor is “utility.” This is a catchall term that can basically be boiled down to the following question: What can you actually do with this cryptocurrency, other than HODL (“hold on for dear life”) and hope it explodes in value one day?

Image source: Getty Images.

Right now, XRP’s primary function is acting as a bridge currency for cross-border payments. It’s faster, cheaper, and more efficient to use the XRP blockchain ledger to send cross-border payments than traditional financial networks.

Thus, XRP has always been known as a “banker’s coin.” Its primary use is for big financial institutions that are moving enormous sums of money across borders. According to top Ripple executives, XRP could one day power a new blockchain-based payment system to rival the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which uses 50-year-old technology.

The only problem is that XRP was not designed as a smart-contract blockchain platform, so it doesn’t have anywhere close to the functionality of Ethereum (CRYPTO: ETH), which remains the world’s preeminent smart-contract blockchain platform. Therefore, in the eyes of many, XRP still has very limited appeal for average investors, unless they are sending money abroad.

But that could be changing. Almost every month seems to bring some new function for XRP, giving it expanded utility. Recently, cryptocurrency exchange Gemini introduced a new “XRP credit card” that’s branded with the crypto’s logo and includes the option to earn 4% back in XRP on purchases. While some think the new card is nothing more than a marketing gimmick, it does show that XRP has the potential to become much more of a mainstream cryptocurrency.

XRP continues to outpace Bitcoin

Most encouragingly, XRP continues to run circles around Bitcoin, which is typically considered the benchmark cryptocurrency that all others are measured against. During the past 100 days, XRP is up 38%, while Bitcoin is only up 7%. For the year, XRP is up 43%, while Bitcoin is up 22%.

As long as XRP continues to outpace Bitcoin, there’s no need to sell. And that’s especially the case since so many of the future price predictions for XRP are simply off the charts. According to online prediction markets, XRP has a 41% chance of hitting $4 this year, and a 32% chance of hitting $5. Given that it is currently trading for about $3, that’s more than enough upside for you to hold on and not sell.

Final caveats for investors

Just be aware: Investing in XRP is not for the fainthearted. As noted above, it has been on a roller coaster ride in 2025. The volatility can be intense, and all the hype, buzz, and speculation around XRP can confuse and disorient even the most diligent of investors.

Case in point: In more than a decade, XRP has never traded higher than $4. Yet, many predictions call for it to hit $10, $20, $30, or even $100 in the near future. So, remember to keep your expectations in check.

The most likely upside scenario is that it hits $4 by the end of the year. That’s a 33% return on your money, and certainly worth the investment. But just remember to buckle up before getting aboard the XRP roller coaster.

Should you invest $1,000 in XRP right now?

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $664,110!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,104,355!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Dominic Basulto has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.

Source link