2 Unstoppable Artificial Intelligence (AI) Stocks to Buy Right Now for Less Than $1,000

The rapid adoption of artificial intelligence (AI) is creating generational wealth-building opportunities for investors. Demand for the chips powering this technology remains strong, yet the leading semiconductor stocks are trading at discounts relative to their expected earnings growth.

For investors with extra cash they can commit to a long-term investing strategy, here are two chip stocks to consider buying right now.

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1. Broadcom

The top AI companies spent a combined $410 billion on capital expenditures in 2025, up 80% from 2024, according to research from The Motley Fool. While there is always the risk of a slowdown in data center spending, the competition among these companies to stay on the cutting edge of AI is driving a massive infrastructure boom. This should continue to benefit Broadcom (NASDAQ: AVGO).

Broadcom provides cloud software, networking, and semiconductor components for data centers. In the fiscal first quarter of 2026, its AI chip revenue grew 106% year over year, and management guided that AI revenue growth would accelerate to 140% in the second quarter of 2026.

The risk investors will need to watch is increasing competition. While some AI companies are building their own chips, Broadcom's edge stems from its design and supply chain capabilities. These are not easy to replicate, which is why it continues to see such strong demand for its products.

The stock's PEG ratio, which compares the price-to-earnings multiple to expected earnings growth, is currently 0.73. Typically, any multiple lower than 1.0 is considered cheap for a growth stock. Broadcom's valuation suggests the market is significantly underestimating the long-term demand for its data center products, leaving upside for patient investors.

2. Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing (NYSE: TSM) is the leading chip foundry, with 72% market share, as of the third quarter of 2025. It makes chips for several tech giants, including Amazon's cloud business.

The risk of investing in any semiconductor stock is that demand can slow during recessions, making the industry cyclical. However, the increasing digitization of the economy has driven steady growth for TSMC for decades. It has a wide competitive moat due to its ability to supply the world's most advanced chip technologies at scale.

Revenue grew 36% to $122 billion in 2025, and management is guiding for approximately 30% growth in 2026. Importantly, TSMC's relationships with customers give it insights into demand trends. The company's outlook for AI chip revenue calls for 50% annualized growth through 2030, which should benefit the stock.

The main risk to TSMC's unstoppable business is a potential conflict between Taiwan and China. While it's considered a low-probability event in the next few years, it would pressure TSMC's business, so investors should size their positions in the stock accordingly. To mitigate this risk, TSMC is expanding its manufacturing base outside Taiwan. By 2030, TSMC is expected to be able to manufacture its most advanced chip processes in the U.S.

Even with these risks, the importance of TSMC in the global chip supply chain makes it a top AI stock to consider holding. It offers an attractive valuation, with the stock's PEG ratio of 0.79, leaving room for long-term upside.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.