Data centers are in high demand for AI operations, with the data center GPU market valued at $23.87 billion in 2024. It is projected to grow at a CAGR of 30.5% through 2032, reaching $201.64 billion. Companies involved in data center technology are set to profit significantly from this growth.

Broadcom (NASDAQ: AVGO) is a key player in the production of custom chips for AI, particularly ASICs. The company has seen strong growth, with full-year revenue for 2025 up 24% and net income up 42%. Investing in Broadcom has historically resulted in impressive returns, with an average annual return of 38.94% over the past 10 years.

Investing in Broadcom could lead to substantial wealth creation over time, with a $1,000 investment potentially growing to $9,300 in 10 years and nearly $87,000 in 20 years. The company’s stock is reasonably priced, with a forward-looking P/E ratio of 34 and a dividend yield of 0.8%, poised for growth in the future.

Consider the advice of experts before investing in Broadcom, as it may not be among the top 10 stocks recommended by the Motley Fool Stock Advisor team. Past recommendations by the team have led to significant returns, with stocks like Netflix and Nvidia generating substantial wealth for investors.

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Read more at Yahoo Finance: This Artificial Intelligence (AI) Stock Could Turn $1,000 Into $87,000 — and Much More