I Sold My Warner Bros. Shares and Bought These 2 Growth Stocks Instead. The AI Supercycle Made It Obvious.

By Geoffrey Seiler – Apr 17, 2026 at 6:45PM ESTKey PointsBroadcom is set to see huge growth from networking and custom AI chips.AMD can ride two powerful trends with inference and agentic AI.With Warner Bros. Discovery in the process of being acquired, I sold my shares in the company and instead have put money into these two top artificial intelligence (AI) names: Broadcom (AVGO +2.02%) and Advanced Micro Devices (AMD +0.05%). Nvidia has ridden the first wave of the AI boom to great heights, but the next wave promises a new set of big winners. Broadcom and AMD look very well positioned for the next AI supercycle just getting started. Broadcom: The networking and custom chip opportunity Broadcom is set to ride two powerful trends emerging in AI infrastructure. The first is the increasing importance of networking. Although large language model (LLM) training and inference are all about speed, it is no longer about how fast a single chip can operate, but how quickly a large cluster of chips can work together. And the more AI accelerators that are strung together, the more important the networking components that tie them together become. Without high-speed networking to reduce latency, companies would not get much added benefit from having huge chip clusters. Broadcom is the leader in data center networking, offering a variety of components that help connect servers and networks to quickly transfer data. The centerpiece of its networking portfolio is its Tomahawk Ethernet solution, which is one of the gold standards for switching and the backbone of many hyperscalers' data centers. With clusters set to reach 1 million chips, this is a fast-growing business. ExpandNASDAQ: AVGOBroadcomToday's Change(2.02%) $8.04Current Price$406.51Key Data PointsMarket Cap$1.9TDay's Range$399.81 - $406.7352wk Range$161.61 - $414.61Volume618KAvg Vol27MGross Margin64.96%Dividend Yield0.62% The other big trend that Broadcom is riding is custom AI accelerators. The company is the leader in application-specific integrated circuit (ASIC) technology, where it provides some of the intellectual property and know-how to turn its customers' chip designs into physical chips that can be manufactured at scale. It helped Alphabet develop its popular tensor processing units (TPUs). These chips are a big growth driver for the company, given the strong demand not only from Alphabet but also from outside customers like Anthropic, which has started to deploy the chips. Broadcom also has deals with OpenAI and Meta Platforms to help them design their own custom chips. It has projected it will see $100 billion in custom chip sales alone in fiscal 2027, and this looks like just the start. Image source: Getty Images. AMD: An agentic AI and inference winner Like Broadcom, AMD is also at the convergence of two important trends: inference and agentic AI. AMD's upcoming MI450 graphics processing unit (GPU) is expected to be a big leap for the company, especially for inference. The company is using a chiplet design, which allows for significantly more memory. This can not only reduce costs but also improve inference performance. AMD's ROCm software platform has also improved significantly, and the company is benefiting from most new AI code being written with open-source frameworks. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(0.05%) $0.13Current Price$278.39Key Data PointsMarket Cap$454BDay's Range$274.14 - $281.0552wk Range$83.75 - $281.05Volume36MAvg Vol38MGross Margin45.99% Management has already partnered with OpenAI and Meta, with each having committed to 6 gigawatts' worth of its new GPUs. Both companies will also take a stake in AMD through warrants and incorporate its ROCm software into their workflows. The issuance of warrants came at a price, but it was an important step for the company to gain access to two of the largest AI infrastructure spenders. AMD also has a huge opportunity in data center central processing units (CPUs). Server racks dedicated to agentic AI will need a much higher CPU-to-GPU ratio, as CPUs will be needed to provide the sequential logic and handle the real-world interactions required to manage AI agents. The company is the leader in this space, and it is developing high-performance CPUs specifically to handle the demands of agentic AI. Through its acquisition of ZT Systems, AMD will soon be able to provide end-to-end full rack systems designed specifically for inference and agentic AI, making it a much more formidable AI infrastructure player. The next big AI winners The AI infrastructure market is shifting, and Broadcom and AMD look poised to be two of the biggest winners. As such, the stocks look like two great options right now.Read NextApr 17, 2026 •By Parkev Tatevosian, CFAMassive News for Meta Stock and Broadcom Stock InvestorsApr 17, 2026 •By Matt Frankel, CFPS&P 500 Explained: How the Index Works and How to Invest in ItApr 17, 2026 •By Rachel WarrenBest Microchip Stocks to Buy in 2026 and How to Invest in ThemApr 16, 2026 •By Daniel FoelberIs Energy the Real AI Bottleneck?

What Investors Need to KnowApr 15, 2026 •By Joe TenebrusoWhy Broadcom Stock Climbed TodayApr 15, 2026 •By Scott LevineBest Edge Computing Stocks for 2026 and How to InvestAbout 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$406.51(+2.02%)+$8.04Advanced Micro DevicesNASDAQ: AMD$278.39(+0.05%)+$0.13*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.