{
  "id": 14785889,
  "title": "3 Chip Stocks to Buy Before Big Tech Reports Its Spending Plans",
  "url": "https://urgent.news/2026/10/15/3-chip-stocks-to-buy-before-big-tech-reports-its-spending-plans",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-15T20:41:03.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/15/3-chip-stocks-to-buy-before-big-tech-reports-its-spending-plans/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Before major tech companies release their spending plans, three chip stocks merit consideration. Microsoft's fiscal first-quarter results are due out on October 28, with other major cloud and internet firms typically reporting around the same time. Capital spending, which reflects how much each company intends to invest in data centers and large-scale projects, is a key metric for chip investors. This year, these plans are expected to continue growing.\n\nAlphabet plans to allocate $195 billion to $205 billion towards capital spending by 2026, while Amazon has increased its estimate to approximately $220 billion. Meta Platforms anticipates spending between $130 billion and $145 billion, nearly double its 2025 spending of $72 billion. Microsoft projects around $175 billion for 2026, bringing the combined spending plans of these four companies to over $700 billion this year.\n\nAmong the three chip stocks, Nvidia, Broadcom, and Marvell Technology each cater to distinct aspects of the industry. Nvidia manufactures and sells the full systems required for training and running artificial intelligence (AI) models, including GPUs, processors, and networking equipment. In the fiscal second quarter of 2027, Nvidia's data center revenue grew 117% year-over-year to $89.0 billion, with Q3 revenue forecast at around $108 billion, a $12 billion increase from the previous quarter. At the time of writing, Nvidia's stock trades near $229, slightly below its October 6 record close and valued at about 14 times earnings using analysts' consensus for fiscal 2028.\n\nBroadcom, on the other hand, assists big tech companies in designing their own AI chips, such as Alphabet's tensor processing units (TPUs) and Meta's MTIA accelerators. The company also sells Ethernet switches to connect these components. Broadcom's AI semiconductor revenue grew 221% year-over-year to $16.7 billion in the fiscal third quarter of 2026, accounting for 56% of its total revenue. Management expects AI revenue to reach $21.7 billion in fiscal Q4, marking a 236% increase. Broadcom's stock trades near $357, about 26% below its June 2 record close and priced at around 19 times earnings using analysts' consensus for fiscal 2027.\n\nMarvell Technology is the smallest of the three, focusing on optical digital signal processors (chips in data modules), switches, and custom chips for cloud giants. Data centers constitute 79% of Marvell's revenue in the fiscal second quarter of 2027, with data center revenue growing 27% year-over-year in fiscal Q1 and 46% in fiscal Q2. Management projects a 75% growth in fiscal Q3. Marvell's stock is currently $269, slightly below its June 4 record close and valued at about 37 times earnings using analysts' consensus for fiscal 2028. While Marvell's growth is accelerating, its price-to-earnings ratio is higher compared to Nvidia and Broadcom. Overall, investors may consider purchasing all three stocks, but Nvidia appears to be the most attractive option due to its lower valuation and continued robust data center growth.",
  "summary": "Four of the largest data center spenders have budgeted over $700 billion for 2026. Microsoft's update comes Oct. 28.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}