Nasdaq Correction: Buy 2 Trillion-Dollar AI Stocks With 50% Upside, According to Wall Street

The Nasdaq Composite (^IXIC +1.16%) entered correction territory on March 26, when it closed more than 10% below its record high. But corrections have historically been buying opportunities because the Nasdaq has never failed to recoup its losses.

Most Wall Street analysts believe two trillion-dollar companies are deeply undervalued:

• Among 73 analysts, Meta Platforms (META +1.24%) has a median target price of $855.50 per share. That implies 50% upside from its current share price of $572.
• Among 52 analysts, Broadcom (AVGO +1.29%) has a median target price of $472.50 per share. That implies 52% upside from its current share price of $310.

Here’s what investors should know about these trillion-dollar artificial intelligence (AI) stocks.

Image source: Getty Images.

Meta Platforms: 50% upside implied by Wall Street’s median target price

Meta Platforms has built an advertising empire atop its portfolio of industry-leading social media networks. Its growth strategy is heavily concentrated on artificial intelligence. The company has designed machine learning models that personalize content and advertising, and it has developed custom AI chips to power those models.

Some investors are concerned about how much money Meta has poured into AI product development, but that spending has led to tangible results. Users are spending more time on its social media platforms, and ad performance is improving. In turn, ad impressions rose 12% last year, and the average price per ad rose 9%.

In a recent note to clients, Brian Nowak at Morgan Stanley wrote, “We think Meta’s runway to further improve engagement and monetization is long as it better analyzes its data and improves its recommendation engines with a growing suite of data, tools, and products.”

Additionally, Nowak believes the conversational assistant Meta AI could become a major source of agentic commerce and advertising revenue. Across its social media platforms, Meta has data from 3.5 billion daily active users and 250 million businesses. Meta AI could use that data to facilitate purchases and bookings and to help brands automate precisely targeted campaigns.

As a caveat, Meta Platforms and Alphabet’s Google recently lost a court case in Los Angeles, where a jury held both companies liable for creating deliberately addictive platforms that damaged a plaintiff’s mental health. Meta and Alphabet will appeal, but they could face a number of similar lawsuits if the ruling sticks.

Even so, Wall Street estimates Meta’s earnings will increase at 22% annually over the next three years. That makes the current valuation of 23 times earnings look fairly cheap. From that price, Meta could certainly return 50% in the next year, but the stock is worth owning even if that doesn’t happen.

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NASDAQ: META

Meta Platforms

Today’s Change

(1.24%) $7.10

Current Price

$579.23

Key Data Points

Market Cap

$1.5T

Day’s Range

$573.82 - $592.55

52wk Range

$479.80 - $796.25

Volume

24M

Avg Vol

16M

Gross Margin

82.00%

Dividend Yield

0.36%

Broadcom: 52% upside implied by Wall Street’s median target price

Broadcom develops semiconductors used across a broad range of markets, but its products fall into two major categories: slow-growing (non-AI) and fast-growing (AI). The first category includes connectivity chips (Wi-Fi and Bluetooth), storage device controllers, and broadband modem chips. Non-AI chip revenue was flat in the first quarter.

The second category includes data center networking chips and custom silicon designed to support artificial intelligence workloads. Broadcom is the leading supplier of Ethernet switching and routing chips, which control data traffic within and between data centers. AI networking revenue increased 60% in the first quarter.

Broadcom is also the leading designer of custom AI accelerators, often called XPUs. These chips are generally a more cost-efficient alternative to Nvidia GPUs, but they also support a more limited range of workloads. Broadcom designs XPUs for five hyperscalers: Google, Meta, ByteDance, Anthropic, and OpenAI. XPU revenue increased 140% in the first quarter.

Nvidia will likely retain its dominance in AI accelerators because its GPUs are more flexible and are backed by a robust software ecosystem. But Morgan Stanley analysts estimate Broadcom XPUs will account for 20% of AI accelerator sales in 2030, up from 10% in 2025. That hints at strong growth, but investors should expect non-AI products to drag on revenue.

Wall Street estimates Broadcom’s earnings will increase at 41% annually in the next three years. That makes the current valuation of 60 times earnings look relatively reasonable. I’m not sure the stock will return 50% in the next year, but the current price is a sensible entry point for patient investors.