Missed Out on Nvidia's Historic Run? These 2 Tech Winners Are Just Getting Started.

Nvidia (NASDAQ: NVDA) has been a huge winner for its long-term -- and even its medium-term -- investors. Just since the AI arms race kicked off in 2023, the stock is up over 1,300%. With spectacular returns that have turned the chipmaker into the world's largest company already behind it, some investors may feel like they've missed the boat. Further, while I'd argue that Nvidia is still a fantastic investment at today's prices, many investors already have enough of it in their portfolios, and may instead want to add more diversification via some other high-potential tech option.

Two that have been widely successful as of late that I think still have strong upside from here are Broadcom (NASDAQ: AVGO) and Micron (NASDAQ: MU).

Image source: Getty Images.

Broadcom

Broadcom is an emerging competitor to Nvidia, thanks to its different approach to AI processing. Instead of designing broad-purpose GPUs as Nvidia does, it's teaming up with hyperscalers and others to design custom chips suited for their AI workloads. These application-specific integrated circuits (ASICs) can provide more cost-effective operations for handling the narrow range of workloads they are suited for, and they are all the rage right now in AI computing. Broadcom's big-name clients include Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), OpenAI, and Anthropic. All of them are at different stages of launching their own chips. However, most of its ASIC designs are starting to reach production, and Broadcom expects this to translate into huge growth over the next year.

In its fiscal 2026 second quarter, which ended May 3, Broadcom's AI semiconductor revenue rose by a jaw-dropping 143% year over year to $10.8 billion. Annualized, that's $43.2 billion. However, Broadcom expects its AI semiconductor revenue to exceed $100 billion by the end of its fiscal 2027. If these custom AI chips turn out to be as popular as Broadcom expects, then 2027 could be just the beginning. That's huge news for investors, and with a lot of that growth still to come, now could be a perfect time to scoop up Broadcom shares before the stock really takes off, especially with it trading for just 19.9 times 2027 earnings.

Micron

If you invested in Micron in 2023 instead of Nvidia, you've actually outperformed it. Micron's stock rose by over 1,800% in that time frame versus Nvidia's 1,300%. True, the bulk of those gains have come over the past few months, but I think the spread between these two will continue to grow over the next year.

Micron makes memory chips, which are in short supply in the data center world. The memory chip industry wasn't expecting the demand wave that hit due to the AI infrastructure build-out, and now, Micron and its peers are scrambling to build new foundries and increase production capacity. But in the meantime, prices of memory chips have skyrocketed, causing Micron's profits and revenues to soar.

MU Revenue (Quarterly YoY Growth) data by YCharts.

With Micron's management team telling investors that it expects memory shortages to persist beyond 2027, its outlook is quite strong, giving it a real chance to outperform Nvidia for years. Micron's fiscal 2027 starts in September, and Wall Street analysts expect 81% revenue growth. They also expect earnings per share to more than double from $73.39 in fiscal 2026 to $150.91 in fiscal 2027. Those would be incredible results.

However, because of the cyclical nature of the memory chip market, shareholders will need to keep a careful eye on this investment. Once the memory chip makers finally succeed in expanding production capacity to meet or exceed demand (or if the AI build-out slows and demand falls), they will lose the pricing power afforded them by the shortage. At that point, falling memory chip prices are likely to take a heavy toll on Micron's financials and its stock price.

Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.