Broadcom And 2 Undervalued AI Stocks To Watch

AI is back in the political spotlight after Donald Trump hosted Anthropic CEO Dario Amodei at the White House, putting high profile artificial intelligence companies and their tools at the center of a fresh regulatory debate. When policymakers start courting AI leaders, it signals how important this technology has become, and that creates a window for investors. This article highlights three undervalued AI related stocks from our screener that could merit a closer look.

The three stocks below are only a small sample, as the full screen pulled out 48 more AI focused businesses with similarly compelling stories that are not covered here. To identify and analyze those additional opportunities directly, head into the Undervalued Artificial Intelligence/ AI Stocks screener.

Broadcom (AVGO)

Broadcom is a key plumbing supplier to the AI boom, building the chips and infrastructure software that help hyperscale customers train and run large language models at scale.

Broadcom Inc. designs and supplies chips and infrastructure software used in data centers, networking, and enterprise systems. Its AI linked Semiconductor Solutions arm generates about US$59.4b, and Infrastructure Software contributes roughly US$29.7b. The business carries a market value near US$1.68t.

"Broadcom benefits from that outcome regardless of which AI model wins, which cloud provider gains share, or which software platform becomes dominant."

What happens to Broadcom’s AI story if a single assumption about long term demand for high end custom silicon and networking shifts?

If that assumption proves too cautious or too aggressive, the full narrative for Broadcom illustrates how Broadcom’s AI momentum, cash engine, and risk profile could be separating from the main headline debate.

Cerebras Systems (CBRS)

Cerebras Systems sits right in the thick of the AI compute build out, supplying wafer scale chips and full stack systems that are purpose built for training and running large language models. This makes it a natural fit for an AI focused undervalued screen.

Cerebras Systems generates about US$680.7 million in semiconductor related revenue from its rack delivered AI compute platform built around its wafer scale engine chips and software, and with a market value near US$49.1b it is already a sizeable player in the ChatGPT era infrastructure race.

"In late 2025, Cerebras signed a transformative Master Relationship Agreement with OpenAI, which is contractually bound to procure 750 megawatts of inference capacity through 2028, backed by a $1.0 billion working capital loan to fund Cerebras's manufacturing scale-up. The first major fruit of this union is GPT-5.3-Codex-Spark, a model explicitly optimized for Cerebras hardware that cranks out real-time code at over 1,000 tokens per second."

What happens to Cerebras Systems’ AI economics if a single assumption about long term inferencing demand and capacity build out has to be reset?

If that reset is on your mind, the full narrative for Cerebras Systems explains how Cerebras Systems’ wafer scale bet could accelerate, stall, or quietly decouple from headline AI hype.

Oracle (ORCL)

Oracle is best known for enterprise databases and applications, but the AI story now runs through Oracle Cloud Infrastructure and its generative AI services, where hosted large language models are wired directly into tools like Fusion ERP, HCM, and NetSuite.

Oracle generates about US$62.8b from cloud and software, US$5.8b from services, and US$3.2b from hardware, with the AI linked OCI and application layer embedded in that largest software bucket. The group is valued at roughly US$415.6b.

For this screener, Oracle matters because its AI ready cloud stack gives enterprises a way to run ChatGPT style workloads alongside critical databases and back office systems. This can turn the AI theme into something embedded in day to day business processes.

"The foundation of Oracle’s AI narrative rests on its Gen2 AI infrastructure and the validation it received from the premier generative AI powerhouse, OpenAI."

One key question for investors is what happens to Oracle’s earnings power if a single assumption about how quickly that contracted AI demand turns into high margin usage has to be reset.

That reset starts with how you frame Oracle’s AI usage curve inside the full narrative for Oracle, which digs into where earnings power could be quietly accelerating.

Seeking Alternatives Before Momentum Flies

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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