Prediction: Broadcom and Nvidia Will Be 2027's Best Performing AI Stocks

With 2026 winding down, investors need to start thinking about which stocks will perform the best in 2027. In December and January, institutional investors do this and reposition their portfolios accordingly, and this can cause end-of-year and start-of-year rallies in stocks. That makes it smart to get in on these stocks before the rallies happen, so investors need to start considering what will be best next year now.

In 2026, shares of some of the best-performing artificial intelligence (AI) companies took a bit of a breather, and some others have done quite well, like memory chip stocks, hardware suppliers, and other infrastructure companies. Two that haven't done great are Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). Nvidia is up about 17%, beating the S&P 500 (SNPINDEX: ^GSPC), which is up about 11%. However, Nvidia investors are used to greater returns in one year. Broadcom investors are very disappointed, as the stock is up less than 5%, which puts it well behind the S&P 500.

Despite the poor 2026 performance, I think these two will have a phenomenal year in 2027 and are excellent stock picks now, as an end-of-year rally could be coming once the market realizes how mispriced these stocks are.

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