Nvidia, Broadcom, and Amazon positioned as AI stock leaders as Nasdaq enters new rally phase—analyst expects 79–85% revenue growth to drive gains through 2026

Nvidia reported 73% revenue growth in its latest quarter and Wall Street projects Q1 and Q2 growth will accelerate to 79% and 85%, respectively. The stock trades at a forward price-to-earnings ratio of 24.2, below its historical average, making it a candidate for rallying through the end of 2026 according to the analyst.

Broadcom's custom AI chip division (made in partnership with cloud companies) generated $8.4 billion in revenue during Q1 of fiscal 2026, up 106% year-over-year. CEO Hock Tan projects this custom chip division alone will produce more than $100 billion in annual sales by the end of 2027—a 10x jump in roughly 18 months.

Amazon Web Services (AWS), the cloud division that generates most of Amazon's operating profit, is experiencing triple-digit revenue growth in its custom chip business and has already sold out its inventory of third-generation Trainum3 chips, with fourth-generation chips (Trainum4) not launching for 18+ months. This positions AWS as a significant beneficiary of AI infrastructure demand.

For investors, the analyst argues these three stocks are undervalued relative to their growth trajectory and recommends buying now before they rally alongside the Nasdaq to new all-time highs over the next several months.