The Smartest Growth Stock to Buy With $1,000 Right Now

By Geoffrey Seiler – Mar 10, 2026 at 4:35PM ESTKey PointsBroadcom's custom AI chips are set to see explosive growth in the coming years.The semiconductor company's networking business is also growing rapidly. The artificial intelligence (AI) infrastructure market remains red-hot and a prime place to find attractive growth stocks. If you have $1,000, I think one of the best investments in the AI space that you can make right now is in Broadcom (AVGO 0.98%). With a $1,000 investment, you can buy three shares. Let's look at what makes Broadcom an attractive growth stock. Riding the custom AI chip wave Spending on AI infrastructure is surging, with the five largest hyperscalers (owners of massive data centers) planning to invest $700 billion in AI data centers this year. As AI spending soars, companies are beginning to look to shift some of their spending toward custom solutions to reduce chip costs. The company that these hyperscalers are increasingly turning toward for help developing custom AI chips, meanwhile, is Broadcom. Broadcom is a leader in application-specific integrated circuit (ASIC) technology, providing the building blocks that turn customers' designs into reality. ASICs are hardwired chips designed for a specific purpose, and, as such, they perform very well at those tasks while being more energy-efficient. That becomes even more important as the inference market grows, because it is an ongoing cost each time a large language model (LLM) answers a query or performs a function. ExpandNASDAQ: AVGOBroadcomToday's Change(-0.98%) $-3.40Current Price$342.35Key Data PointsMarket Cap$1.6TDay's Range$340.85 - $353.1352wk Range$138.10 - $414.61Volume1.3MAvg Vol32MGross Margin64.96%Dividend Yield0.70% Meanwhile, inference is not as technical as AI model training, so the moat that Nvidia has with its graphics processing units (GPUs) through its CUDA software program, which is where most foundational AI code has been written, isn't nearly as wide. At the same time, Broadcom already has a huge success story with helping Alphabet develop its Tensor Processing Units (TPUs). These chips have proven to be so good that Alphabet is not only using them for most of its internal workloads and within its cloud computing division, but it is also starting to sell the chips to customers for use outside of Google Cloud. For example, Anthropic has already placed a $21 billion TPU order with Broadcom to be delivered this year. Meanwhile, other hyperscalers, including OpenAI, are developing their own custom chips through Broadcom. The company has projected that it could generate more than $100 billion in AI ASIC revenue alone in fiscal 2027, which is more than the $63.9 billion in total revenue it produced last fiscal year. Image source: Getty Images. At the same time, Broadcom has a rapidly growing data center networking business as well. Its networking revenue grew by 60% last quarter (fiscal Q1 2026), and that growth is expected to accelerate in fiscal Q2. As AI clusters grow in size, networking becomes more important, and Broadcom is the leader in this space. Overall, Broadcom is set to see explosive growth over the coming years in both its ASIC and networking businesses, making the stock a smart buy.Read NextMar 9, 2026 •By David Jagielski, CPAWhy Broadcom Isn't Running Out of Growth Opportunities Anytime SoonMar 7, 2026 •By Geoffrey SeilerIs Broadcom a Buy as AI Revenue Continues to Surge?Mar 7, 2026 •By Jason HallWhat Is the Best Chip Stock to Own for the Next 10 Years?Mar 6, 2026 •By Daniel SparksBroadcom's Growth Is Accelerating. Time to Buy the Stock?Mar 5, 2026 •By Eric TrieStock Market Today, March 5: Broadcom Rallies as as AI Chip Demand Strengthens Revenue OutlookMar 5, 2026 •By Danny Vena, CPAWhy Broadcom Stock Rallied on ThursdayAbout the AuthorGeoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.TMFFindProfitStocks MentionedBroadcomNASDAQ: AVGO$342.35(-0.98%)-$3.40*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.