The AI Infrastructure Stock That Could Make Investors Millionaires Is Hiding in Plain Sight, and Wall Street Isn’t Paying Attention

Artificial intelligence (AI) infrastructure spending has been growing at an incredible pace, and the good news is that major hyperscalers, AI companies, and neocloud specialists are expected to continue investing more money in this space.

Nvidia recently noted that the combined capital expenditure of the top five hyperscalers is poised to reach $800 billion in 2026. The semiconductor specialist added that their capex could jump to $1.3 trillion in 2027. Importantly, Nvidia estimates that overall AI capex could jump to $3 trillion to $4 trillion by 2030 .

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Semiconductor stocks are winning big from the booming AI infrastructure spending. This explains why the PHLX Semiconductor Sector index has zoomed higher by 97% over the past year. However, Broadcom (NASDAQ:AVGO) stock has underperformed the semiconductor sector during this period, with a flat performance.

The company's latest quarterly report hasn't done much to improve confidence in the stock either. However, a closer look at Broadcom's impressive growth suggests that investors may be missing the bigger picture.

Broadcom's stellar results and guidance don't justify the stock's underperformance

Broadcom makes application-specific integrated circuits (ASICs) and networking components. These products are in terrific demand in AI data centers, which explains why the company reported phenomenal growth last quarter.

Broadcom released fiscal 2026 third-quarter results (for the three months ended Aug. 2) on Sept. 2. Its revenue jumped 86% year over year to $29.6 billion, driven by robust demand for custom AI chips and networking processors. What's more, the company's non-GAAP earnings nearly doubled year over year to $3.32.

Broadcom noted that its AI chip revenue jumped by a whopping 221% year over year in fiscal Q3 to $16.7 billion. The company anticipates a stronger year-over-year increase of 236% in AI revenue this quarter to $21.7 billion. As a result, Broadcom's overall revenue is on track to increase by 93% in fiscal Q4 to $34.8 billion.

There is no doubt that Broadcom's numbers and guidance are impressive. However, Wall Street expected Broadcom to guide for $35.1 billion in fiscal Q4 revenue. This explains why Broadcom stock was in the red following its stellar quarterly report. However, Broadcom's underperformance means savvy investors can now buy the stock at a very attractive valuation, which could be a smart move given its terrific prospects.