The Best Stocks to Invest $1,000 in After Last Week's Market Volatility

The stock market has been volatile lately as war rages on in the Middle East and earnings season winds down. If you're looking to dip your toe into some stocks, say with $1,000, let's look at two strong options.

Image source: The Motley Fool.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Broadcom

Broadcom (NASDAQ: AVGO) has struggled to find its footing a bit in the market this year, but the company has one of the best growth outlooks in the megacap tech space. The company is seeing strong momentum in its data center networking business, but its biggest opportunity is in custom AI chips.

As spending on AI infrastructure continues to climb, hyperscalers (owners of large data centers) are increasingly looking for cheaper alternatives to Nvidia's graphics processing units (GPUs). One of the best options is to develop custom chips called ASICs (application-specific integrated circuits), which are hardwired chips designed for specific tasks.

Broadcom has proven itself a leader in this field, helping co-develop Alphabet's highly successful tensor processing units (TPUs). With TPU demand soaring and Broadcom securing commitments from other hyperscalers to help them create their own custom AI ASICs, Broadcom is set to see explosive growth. The company said it is on track to generate more than $100 billion in AI ASIC revenue alone in its fiscal 2027, which is more than 1.5 times its total fiscal 2025 revenue.

Given its huge growth opportunity ahead and the market tailwinds shifting in its favor, now is a great time to scoop up Broadcom shares.

Amazon

Amazon (NASDAQ: AMZN) is another stock that has lagged to start the year. While higher fuel prices are a headwind, nobody has been better at driving efficiencies than Amazon.

Through its use of robots and AI, the company has been reducing costs and seeing impressive operating leverage in its e-commerce operations. Within this segment, it's seen strong growth from its high-margin sponsored ad business, as well.

At the same time, Amazon's cloud computing unit, Amazon Web Services (AWS), is also starting to see its revenue growth accelerate. This is actually the company's largest segment by profitability, and it is spending aggressively to increase capacity to meet growing demand.

Meanwhile, it has partnerships with both Anthropic and OpenAI that should help drive growth in this segment. According to reports, Amazon CEO Andy Jassy sees AWS growing to be a $300 billion revenue business in the next decade, more than twice the level he originally thought it could approach.

With a huge cloud computing opportunity still ahead of it and its leading e-commerce operations, Amazon is top stock to buy.

Geoffrey Seiler has positions in Alphabet, Amazon, and Broadcom. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.