The Ultimate AI Investing Basket: 4 Stocks Primed to Skyrocket in 2027

Artificial intelligence (AI) investing is not the hottest sector in the market right now. It's selling off a bit due to a hot inflation report that could prompt an interest rate increase. An interest rate increase could cause some companies to borrow less to build out AI infrastructure due to higher interest costs, slowing overall progress. That's the prevailing line of thinking in the market right now, but it's extremely short-sighted.

While an interest rate hike could be coming, the reality is that nothing is stopping the AI build-out. Many AI hyperscalers plan years in advance for how they will spend their money, and as long as there is still massive demand for new AI technology (and there is), this space will be a great one to invest in.

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With the market selling off pretty much every stock associated with AI, now is the perfect time to swoop in and buy these stocks at a discount. There are four that I think are nearly guaranteed winners in 2027: Taiwan Semiconductor Manufacturing (NYSE: TSM), Micron Technology (NASDAQ: MU), Nvidia (NASDAQ: NVDA), and Broadcom (NASDAQ: AVGO). All four of these stocks are on sale and look like major bargains right now.

Nvidia and Broadcom have given bullish guidance for next year

Nvidia and Broadcom are two of the biggest providers of AI computing units. Nvidia makes GPUs, while Broadcom partners directly with AI hyperscalers to design custom AI computing units optimized for the workloads they will run. Many companies are choosing between a hybrid approach of Nvidia GPUs and custom AI chips, and there is plenty of growth to go around.

For next year, Nvidia already informed investors that it expects 70% revenue growth. For Nvidia to announce that level of growth already shows it has strong visibility into its revenue streams, making today's interest-rate problems a non-issue. Broadcom is similar, as it informed investors it expects its AI semiconductor revenue to rise to $115 billion next year, up from about $65 billion this year.

Both companies expect huge growth, yet none of it is priced into their stocks yet. When next year's earnings projections are used, Nvidia and Broadcom trade far below where they do now.

Data by YCharts.

These are two incredibly cheap price tags for some of the best stocks in the market. If you buy Nvidia and Broadcom stock now and they hit analyst expectations, each could provide incredible returns next year.

The chip providers are rapidly growing

Companies like Nvidia and Broadcom don't make their own chips; they only design them. The fabrication duties are handed off to TSMC, which handles chip fab for nearly all of the big tech firms. While there are alternatives out there, none can match the scale of TSMC. TSMC just announced a monster quarter, with Q3 revenue growing at some of the fastest rates during the AI build-out.

Data by YCharts.

Micron is another major chip provider, though it focuses on memory chips rather than the logic chips Taiwan Semiconductor makes. Memory chips are in short supply right now, as demand from AI has consumed all available production capacity. High demand and low supply have driven up commodity prices, and that's exactly what has happened this year.

Micron has made a fortune from this mechanism, although it's far from done. Its management team told investors that it expects market conditions to worsen in 2027 and 2028, despite additional production capacity coming online in mid-2027. That will keep Micron in the driver's seat and allow it to excel.

Despite that, the stock trades for a dirt cheap 5 times this fiscal year's earnings, making it the biggest bargain on this list.

Data by YCharts.

As long as the AI market stays healthy, Micron's stock will be a must-own in 2027.

All four of these AI stocks are fantastic buys right now, and investors should take advantage of the current sale prices.

Keithen Drury has positions in Broadcom, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.