The Best Stocks to Buy Right Now

It’s hard to narrow down the list of best stocks to buy in the market to just three, but it’s something that investors must do in order to keep a fairly streamlined portfolio. If you have too many stocks, it becomes harder to follow them all closely, which could lead to a company slipping through the cracks.

I’ve narrowed down my list to three stocks that look like excellent buys, and you’ll be able to spot a common theme among them.

Image source: Getty Images.

  1. Broadcom

Broadcom (AVGO 0.98%) is a relatively new player to the artificial intelligence (AI) computing scene. While Nvidia (NVDA +1.13%) captured a lot of the market share during the first few years of the AI buildout because its graphics processing units (GPUs) were the best computing option available, there are other alternatives arriving.

One of those is from Broadcom, which has partnered directly with AI hyperscalers to design a custom AI chip that’s tailored for their workloads. The best example of this is Alphabet’s Google’s Tensor Processing Unit (TPU), but Broadcom has clients all over the industry that are using its chips.

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NASDAQ: AVGO

Broadcom

Today’s Change

(-0.98%) $-3.40

Current Price

$342.35

Key Data Points

Market Cap

$1.6T

Day’s Range

$340.85 - $353.13

52wk Range

$138.10 - $414.61

Volume

1.3M

Avg Vol

32M

Gross Margin

64.96%

Dividend Yield

0.70%

Broadcom sees incredible growth ahead for its AI chips, and it’s a prime reason to buy the stock. In Q1 of fiscal year (FY) 2026 (ending Feb. 1), Broadcom’s AI semiconductor revenue rose 106% year over year to $8.4 billion. Next quarter, they expect $10.7 billion in revenue.

However, both figures are small potatoes compared to the growth it expects by the end of next year. For 2027, Broadcom expects more than $100 billion in AI semiconductor revenue alone.

That’s a monster growth rate and could cause the stock to skyrocket. This makes Broadcom one of the best stocks to buy in the market, but its primary competition isn’t a bad buy either.

  1. Nvidia

Just because Broadcom is growing rapidly doesn’t mean Nvidia is going anywhere. Nvidia is similarly seeing impressive growth, with its revenue rising 73% in Q4 of FY 2026 (ending Jan. 25). Next quarter, it expects 77% revenue growth.

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NASDAQ: NVDA

Nvidia

Today’s Change

(1.13%) $2.07

Current Price

$184.72

Key Data Points

Market Cap

$4.4T

Day’s Range

$182.01 - $186.44

52wk Range

$86.62 - $212.19

Volume

6.7M

Avg Vol

177M

Gross Margin

71.07%

Dividend Yield

0.02%

While Broadcom’s chips are growing in popularity and serve as an alternative to Nvidia’s GPUs, the reality is that both are in massive demand. The AI hyperscalers are acquiring as much computing power as possible, and it doesn’t really matter if it comes from Nvidia or Broadcom.

Both companies are an integral part of the AI buildout. With data center capital expenditures expected to reach $3 trillion to $4 trillion by 2030, each company has a massive market share it could capture.

Nvidia is actually far cheaper than Broadcom, trading at 22 times forward earnings versus Broadcom’s 30. This makes Nvidia well worth buying as well, as it’s not often Nvidia trades at this much of a discount to its peers.

  1. Microsoft

Microsoft (MSFT 0.95%) is another stock that’s trading at a cheap valuation, at least compared to historical levels. Microsoft is taking a different approach to the AI buildout. Instead of developing its own generative AI model, it’s choosing to build the infrastructure that its clients can build and develop AI models on.

This makes Microsoft a huge winner in this realm and gives its massive data center spending spree a measurable return on investment. With its cloud computing revenue soaring 39% in the latest quarter, Microsoft’s spending looks to be justified.

Despite that, Microsoft’s stock is priced at an incredibly cheap level.

MSFT PE Ratio data by YCharts

Microsoft usually trades at a price-to-earnings ratio in the low 30s, but right now, it’s at 26. This is the lowest level it has been at since the marketwide sell-off in 2022, when everyone was convinced the economy was heading for a recession. The outlook is a lot brighter now than it was in 2022, which is why the sell-off is a head-scratcher.

The market is giving investors a rare gift with Microsoft’s stock. I don’t expect it to stay beaten down at these levels for much longer, and right now it looks like a prime buying opportunity.

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