The AI Stock I’m Buying on Repeat (And It Isn’t Nvidia)

The AI Stock I’m Buying on Repeat (And It Isn’t Nvidia) Alex Sirois Tue, September 15, 2026 at 5:15 PM GMT+2 4 min read AVGO NVDA Quick Read Broadcom's AI semiconductor revenue surged 221% year-over-year to $16. 7 billion, while free cash flow hit $13. 7 billion, which represented 46% of total revenue.

Broadcom's forward P/E of ~19 and 15-year dividend raise streak give it clear valuation and income advantages over Nvidia. Hock Tan guided to over $30 EPS in FY2028 and projects AI revenue reaching $230 billion, saying the company is 'just getting started. ' Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) I keep hitting the buy button on Broadcom ( NASDAQ:AVGO ), and September's pullback just handed me another reason to do it again.

The stock is down 12. 28% over the past month and essentially flat year to date at $344. 72, while the business underneath it just posted the quarter of a lifetime.

That gap is where my conviction lives. Shutterstock Why I Keep Adding at These Prices My thesis is simple. Broadcom is quietly becoming the plumber for the AI build-out that everyone else rents from a single GPU vendor.

When a hyperscaler decides its own workloads deserve their own silicon, they call Hock Tan. Custom accelerators are a different business than merchant GPUs, and I want to own it for the next decade. The Q3 FY2026 numbers make the case without me embellishing anything.

Revenue landed at $29. 59 billion, up 85. 5% year-over-year.

AI semiconductor revenue alone hit $16. 70 billion, up 221% YoY and 54% sequentially. Free cash flow was $13.

66 billion, or 46% of revenue. Operating income jumped 171. 02% YoY.

Those are cash generation numbers I structure a retirement position around. Second, the balance sheet moved the right way. Cash rose to $23.

98 billion, up 123. 69% YoY, while total liabilities dropped 4. 21% YoY.

Management repaid $5. 6 billion of long-term debt in the quarter and another $1. 5 billion after quarter end.

Deleveraging while free cash flow nearly doubles is the combination I want. Third, the dividend keeps compounding. The quarterly payout sits at $0.

65, following a 10% raise that marked the 15th consecutive annual dividend increase since fiscal 2011. My yield-on-cost climbs every year I hold. Learn 7 Secret Wealth Tips High Net Worth Investors Use How do you continue to grow a seven-figure portfolio in retirement?

The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Story Continues Passing on Nvidia, Again The obvious alternative is NVIDIA ( NASDAQ:NVDA ), and I own some.

I keep adding to Broadcom instead for two verifiable reasons. First, income. Broadcom pays a forward annualized dividend of $2.

60 per share behind a 15-year raise streak, a profile Nvidia does not meaningfully match. Second, valuation on forward earnings. Broadcom trades at a forward P/E of roughly 19 with a PEG of 0.

358. Broadcom is also the pick-and-shovel play on Nvidia's own customers designing around it: Google, OpenAI, Meta and Anthropic are all named Broadcom XPU customers, with the Anthropic-plus-OpenAI financing platform targeting 20 gigawatts of compute by the end of 2028. Risk I Take Seriously Customer concentration is real.

Tan said it plainly: "we have only six customers to deal with. " If one delays a program or in-sources further, the AI revenue curve bends. I hold the position anyway because the FY2027 AI outlook of approximately $115 billion and FY2028 outlook of $230 billion come with management saying supply is already secured, and the Infrastructure Software segment, up 29% YoY to $8.

75 billion at a 94% gross margin, cushions any single-customer shock. What Keeps the Buy Button Live Tan told the September call, "Q3 demand was simply hot and we're just getting started. " Management is guiding to over $30 in earnings per share in fiscal 2028.

At today's price, that math is why my next contribution goes to the same ticker it went to last month, and the month before that. (The traits that showed up in the biggest tech winners years before their runs are the ones we cataloged in a free playbook here: The Next Nvidia Playbook. ) Learn 7 Secret Wealth Tips High Net Worth Investors Use How do you continue to grow a seven-figure portfolio in retirement?

The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact editorial@247wallst.

com for any questions or corrections.