2 High-Growth AI Stocks I'd Be Buying Instead of SpaceX
Broadcom and AMD look like the much better AI stocks to buy right now.
By Geoffrey Seiler
Space Exploration Technologies (SPCX +0.47%) -- otherwise known as SpaceX -- has caught investors' imagination after a hot initial public offering (IPO) and promises of huge revenue figures in a few years. While its internet satellite business, StarLink, is currently its biggest source of profit, SpaceX is trying to position itself as the artificial intelligence company of the future.
The company's reusable rocket launch business gives it a cost advantage in getting satellites and other payloads into space. When Elon Musk merged his xAI business, home to his Grok AI model and AI infrastructure business, with SpaceX, it was with the goal of using this platform to eventually develop data centers in space. With near-constant sunlight, solar-powered data centers orbiting Earth could help solve AI's power consumption problem -- making it an intriguing idea.
However, there are technical issues to work out, including developing a way to cool the system in the vacuum of space, designing chips that can withstand cosmic radiation, and creating robots that can assemble and maintain these data centers in space. While Musk has predicted SpaceX could generate $1 trillion in revenue by 2030, that appears to be a moonshot bet, and it will have to overcome a lot of obstacles to achieve that goal.
As such, let's look at two AI stocks with huge growth ahead that are grounded much more in reality.
1. Broadcom: The custom chip and networking opportunity
Broadcom (AVGO +0.22%) is riding two powerful market opportunities right now. The first is the desire of hyperscalers (owners of large data centers) to move some of their supply away from AI chip leader Nvidia to save money, especially for inference. One way they are looking to do this is by developing their own custom AI accelerators.
Because of this, hyperscalers have been increasingly turning to Broadcom, which is a leader in ASIC (application-specific integrated circuit) technology. Broadcom helps turn its customers' designs into hardwired, physical chips that can be produced at a mass scale.
It helped Alphabet develop its highly successful Tensor Processing Units (TPUs), which comprise a huge, fast-growing business as the search and cloud computing leader plows money into AI infrastructure and is even starting to let select customers, like Anthropic, order TPUs directly from Broadcom. This is also leading to an increasing number of new custom AI chip customers.
Broadcom has projected it will generate more than $100 billion in ASIC revenue in fiscal 2027, well above the nearly $64 billion in total revenue it recorded in fiscal 2025. Its ASIC business also directly feeds into its leading data center networking business, which is becoming more important as chip cluster sizes grow. Between these two businesses, the company has a clear sight to explosive growth in the coming years.
2. AMD: The inference and agentic AI opportunity
Another company with a clear line of sight to rapid growth over the coming years is Advanced Micro Devices (AMD 1.29%). Like Broadcom, the company is also riding the momentum in the inference market. While it ceded the AI model training market to Nvidia, its GPUs are much better suited for inference.
Inference tends to be much more memory-bound than power-constrained, and AMD's chiplet design can pack in more memory. In addition, its recent acquisition of memory optimization company MEXT will give it AI-based software that can essentially help systems increase their memory capacity while lowering costs. Through its prior ZT Systems acquisition, it can now also deliver end-to-end solutions designed specifically for inference. AMD already has two large $100 billion GPU deals in place, so this should be a big area of growth.
At the same time, the company is set to ride the emerging trend of agentic AI. AMD has established itself as a leader in the data center central processing unit (CPU) market, and data centers will need significantly more of these chips to manage the rise of AI agents. AMD projects that this will become a $120 billion market over the next few years, giving it another strong growth driver.
Between its GPU and CPU opportunities, AMD has a clear, visible path to strong growth in the coming years.