Just because a stock is on a strong run, doesn’t mean you can’t add more shares. Let’s look at two growth stocks you may want to consider doubling up today.
Broadcom (NASDAQ: AVGO ) With its stock essentially doubling in value in 2023 and 2024, and then rising by nearly 50% in the past year, the shares are on a strong run. The stock has recently pulled back some from its highs, and has a big upside opportunity ahead of it. This makes it a top option to double up in 2026.
Where to invest $1,000 now? Our analyst team recently revealed what they believe 10 Best Stocks Join Stock Advisor when you buy now. View Stock »
Broadcom is one of the biggest beneficiaries of the recent shift among artificial intelligence (AI) companies that are starting to move more toward custom AI chips. As graphics processing units (GPUs) dominate the landscape today, more and more companies are looking to design their own custom chips to help keep costs down. Meanwhile, these companies are increasingly turning to Broadcom, a leader in ASIC (application-specific integrated circuit) technology, to help take their designs and make them a reality.
Broadcom helped Alphabet With its highly successful Tensor Processing Units (TPUs), which has become a growth driver for Broadcom as Alphabet begins to let its cloud computing customers use these chips. Meanwhile, other companies, including OpenAI, have also turned to Broadcom for help building their own custom chips. With Broadcom’s AI revenue set to explode in the coming years, it’s a stock to double.
Another tech stock to consider doubling up on right now Micron Technology (name: mu). One of the biggest bottlenecks in AI infrastructure right now is memory, and Micron is the leader in the space. About 80% of its revenue comes from DRAM (Dynamic Random Access Memory) and 20% from NAND (Flash Memory).
For GPUs and other AI chips to perform well, they need a special form of DRAM called high-bandwidth memory (HBM) that can store, retrieve, and send data quickly. However, HBM manufacturing is a more complex process and requires three to four times the wafer capacity of conventional DRAM. This is causing supply shortages and memory prices going through the roof. It has also pulled resources from NAND at a time when data centers also need large enterprise, high-performance solid-state drives (SSDs).
The result is increased demand for Micron’s memory components and skyrocketing prices, leading to greater gross margin expansion and increased profitability. The company sees HBM demand growing at a 40% annual clip through 2028 and is aggressively investing in building new plants to help increase capacity to better meet demand. You may want to double down on stocks because of this supercycle environment.
