Motley Fool favors Broadcom, Nvidia, TSMC over AMD, Intel for Q4

The Motley Fool identifies Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing as the preferred artificial intelligence stock positions for the fourth quarter of 2026, prioritizing companies with lower valuations over recent top performers. The outlet argues that while AMD and Intel have led the S&P 500 in price appreciation this year, their current earnings multiples suggest limited future upside compared to their larger peers.

AMD and Intel rank among the top ten S&P 500 performers in 2026, with shares up 195% and 230%, respectively. The Motley Fool contends that these gains have priced in significant growth expectations, making the stocks less attractive for new investment. In contrast, Broadcom and Nvidia are described as growing faster than AMD despite their larger market capitalizations. AMD reported data center revenue of $6.7 billion in the second quarter, a 107% increase. Nvidia’s data center revenue reached $89 billion, growing at a 117% pace. Broadcom’s AI semiconductor revenue totaled $16.7 billion in its latest quarter, expanding at a 221% rate.

The outlet notes that AMD’s valuation has surged relative to Nvidia and Broadcom based on next year’s earnings projections. This higher multiple is expected to constrain AMD’s share price growth in the near term. Consequently, investors are advised to focus on Nvidia and Broadcom for potential returns in October.

The analysis also addresses Intel’s foundry business, which has received cash injections from outside investors to fund efforts to close the capability gap with industry leader Taiwan Semiconductor Manufacturing. While this strategic shift has driven Intel’s stock price higher, The Motley Fool states that much of the anticipated turnaround is already reflected in the share price. A comparison of forward one-year price-to-earnings ratios shows Taiwan Semiconductor Trading at a significant discount to Intel.

The outlet predicts that Taiwan Semiconductor will outperform Intel over the next year due to this valuation gap. Although Intel’s improved foundry capabilities will increase competition, Taiwan Semiconductor remains the dominant player in chip manufacturing. The Motley Fool expects Taiwan Semiconductor to deliver faster growth and better stock performance than Intel through the remainder of 2026 and into 2027.