This Under-the-Radar Stock Could Be a Market Leader by 2027

If you asked the average investor to name the top 10 largest companies by market cap or every $1 trillion company, they probably could do fairly well. However, I can nearly guarantee that the majority of investors would leave one company off the list: Broadcom (NASDAQ: AVGO). Broadcom isn't as well-known as some of the other household names at this threshold, and that makes it fly a bit under the radar, even if it's worth $1.5 trillion.

Over the next two years, Broadcom has a ton of growth in the pipeline that could push it from an obscure stock to one of the more well-known ones, similar to how Nvidia rose from niche knowledge to kitchen table talk. This rise in fame would also coincide with stock price appreciation, making Broadcom a fantastic option to consider buying now.

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Broadcom is Nvidia's only real challenger

Nvidia has dominated the AI computing market and has secured a massive market share. However, its clients are constantly looking for ways to replace Nvidia's graphics processing units (GPUs), because they're so expensive.

Broadcom is trying to steal some of that market share by partnering directly with AI hyperscalers and designing custom AI chips suited for their needs. These chips are set up to run one function, so they aren't as flexible as a GPU. However, companies can buy more ASICs (application-specific integrated circuits) for their dollar than they can Nvidia GPUs, which leads to a more cost-effective solution.

The chipmaker already has several large clients using its chips, most notably Google with its Tensor Processing Unit. However, there are several other AI hyperscalers that are in the process of finishing their designs and purchasing chips throughout 2026 and 2027. This will lead to impressive growth, challenging Nvidia at the top of the computing food chain.

For the first quarter, Broadcom expects its AI semiconductor revenue to double year over year. That's the fastest growth rate from any company in the AI computing space, showcasing Broadcom's ability to take market share. However, Broadcom is more than just a custom AI chip company. It has several other business units that aren't growing nearly as fast, which drags down Broadcom's overall growth rate.

Still, Wall Street analysts project 52% revenue growth companywide in fiscal year 2026, even with AI semiconductor revenue making up less than half of its current total. FY 2027 is also strong, with 39% revenue growth expected. That growth will vault Broadcom up the company rankings, allowing it to potentially reach the exclusive $3 trillion market cap club by the end of 2027.

That would result in the stock doubling in two years, making it a clear, no-brainer buy right now.

Keithen Drury has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.