The Top Stocks to Put $1,000 Into Today --

Top Semiconductor Stocks to Consider for Your Investment Portfolio

Whether you have $100, $1,000, or $100,000 to invest, Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) are two companies that stand out as strong candidates for your watchlist.

Both firms are leaders in the semiconductor industry, a sector that has experienced significant growth recently. This surge is largely driven by the rapid expansion of artificial intelligence (AI) and the increasing demand for advanced data centers to support AI workloads.

Image source: The Motley Fool.

Impressive Historical Returns

Take a look at the average annual returns these two stocks have delivered over various time frames:

Source: Morningstar. Data as of March 10, 2026.

Spotlight on Nvidia

Nvidia has earned its reputation as a market favorite. The company has shifted its primary focus from gaming hardware to chips designed for AI data centers. In addition, Nvidia is expanding its reach into software, networking, and related services, including its recent entry into AI agents.

The company generates substantial cash flow and has been aggressively repurchasing its own shares, spending $41 billion in the last fiscal year and planning to allocate at least another $58 billion. These buybacks benefit shareholders by reducing the number of outstanding shares, thereby increasing each remaining share’s claim on future earnings.

Spotlight on Broadcom

Broadcom operates as both a semiconductor and software provider, and is a major player in networking hardware. The ongoing AI revolution has been a significant growth driver for Broadcom, as AI applications require both advanced chips and software solutions.

The company offers customizable AI accelerators for data centers, and its AI segment has recently outpaced Nvidia’s in terms of growth.

Both Nvidia and Broadcom are well-positioned for the future, especially as leading technology companies are set to invest hundreds of billions of dollars in AI infrastructure in 2026 alone.

Is Now the Time to Buy Nvidia or Broadcom?

Given their remarkable historical returns, you might wonder if these stocks are already too expensive. However, Nvidia’s forward price-to-earnings (P/E) ratio of 22.75 is significantly lower than its five-year average of 36.94, and its price-to-sales ratio of 20.74 is also below its five-year average of 23.91. (It’s worth noting that both ratios are still quite high.)

Broadcom, on the other hand, currently trades at a forward P/E of 32.40, which is above its five-year average of 19.97, and its price-to-sales ratio of 24.64 is more than double its five-year average. Even so, for long-term investors, buying now could still yield strong results. Alternatively, you might consider investing gradually over time.

Of course, there are plenty of other promising growth stocks available if these two don’t fit your investment strategy.

Should You Buy Nvidia Stock Today?

Before making a decision on Nvidia, keep this in mind:

*Stock Advisor returns as of March 14, 2026.