SpaceX, Micron, and Sandisk Are Getting All the Hype -- but This Stock Quietly Beats Them All for Long-Term Investors

Space Exploration Technologies (NASDAQ: SPCX) completed the largest U.S. initial public offering on record in June 2026. Shares of Micron Technology (NASDAQ: MU) have gained nearly 240%, while Sandisk (NASDAQ: SNDK) shares have soared over 591% so far in 2026.

But Broadcom (NASDAQ: AVGO) may be the better stock for long-term investors. Here's why.

Image source: Getty Images.

Broadcom's AI business is already producing a lot of cash

Broadcom's revenue rose 48% year over year to $22.2 billion in the second quarter of fiscal 2026 (ending May. 3, 2026). Artificial intelligence (AI) semiconductor revenue jumped 143% year over year to $10.8 billion. Management expects AI semiconductor revenue to reach $16 billion in the third quarter.

As companies build larger computing clusters, Broadcom benefits in two ways. The company helps develop custom accelerators and sells the networking products that connect those chips.

Broadcom generated $10.3 billion in free cash flow but logged just $231 million in capital expenditures in the second quarter. The company can keep its own capital spending relatively low in part because it outsources much of its chip production. In the first two quarters of fiscal 2026, about 95% of the wafers produced by its contract manufacturers came from Taiwan Semiconductor Manufacturing.

The other three stocks come with bigger questions

SpaceX's revenue rose 92% year over year to reach $7.8 billion. But its capital expenditures were $18.4 billion, including $15.8 billion on its AI business. Those investments could pay off, but execution risk is also high.

Micron and Sandisk are benefiting from exceptionally strong memory-market conditions. Micron's revenue reached $41.5 billion, while non-GAAP gross margin hit 84.9% in the third quarter of fiscal 2026 (ending May. 28, 2026).

Sandisk's gross margin was similarly high at 84.6% in the fourth quarter of fiscal 2026 (ended July 3, 2026). Revenue rose 51% sequentially to nearly $9 billion, and two-thirds of that growth was associated with higher prices rather than increased volumes.

However, both companies still face the risk that today's unusually high profits could fall once memory supply catches up with demand. Both are trying to make their results more predictable.

Micron has signed 16 multiyear customer agreements, typically running from calendar year 2026 through calendar year 2030. These deals commit customers to specific purchase volumes, with fixed prices, agreed-upon price ranges, or market-based terms, depending on the contract. Sandisk has also signed new multiyear agreements with eight customers, covering about half of its planned fiscal 2027 memory bits and roughly two-thirds of fiscal 2028 bits.

Broadcom's risk-reward proposition is still attractive

Broadcom is trading at roughly 20 times its average fiscal 2027 earnings estimate of $19.53 (as of Aug. 14, 2026). The valuation looks reasonable, considering analysts expect the company's fiscal 2027 earnings per share to grow year over year by 68%.

Broadcom's five largest customers already account for about 45% of net revenue in the second quarter. The company is also taking on some financing risk. The company has agreed to support financing for AI computing racks leased to one customer over five years. If that customer stops making lease payments, Broadcom could face up to $29 billion of exposure.

Of the four stocks, Broadcom still looks like the better choice for long-term investors. The company combines rapid AI growth, strong cash generation, and a valuation that could support solid returns even as growth slows.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, Micron Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.