2 Stock-Split Artificial Intelligence (AI) Stocks Wall Street Billionaires Are Buying

Group 1: Broadcom - Broadcom is a semiconductor and software company with an 80% revenue share in Ethernet switching and routing chipsets, which are crucial for data center operations [4] - The market for Ethernet chipsets is projected to grow at a rate of 30% annually as enterprises invest in AI infrastructure [4] - Broadcom holds a 60% market share in high-end ASICs, which are essential for accelerating AI workloads [5] - Revenue from three unnamed hyperscalers could reach between $60 billion and $90 billion by 2027, up from $12.2 billion in 2024, indicating a potential annual growth of 70% to 95% [6] - Broadcom's adjusted earnings are expected to grow at 22% annually through 2027, making its current valuation of 47 times adjusted earnings appear reasonable [7] Group 2: Arista Networks - Arista Networks specializes in high-speed Ethernet switches and is the revenue leader in switches of 100 gigabits per second and faster, essential for AI workloads [8] - Arista has three times more market share in high-speed Ethernet switches compared to Cisco Systems, attributed to its single operating system, EOS [9] - The total addressable market for Arista is expected to grow at 14% annually through 2028, driven by investments in AI infrastructure from hyperscalers and modernization efforts from smaller enterprises [10] - Wall Street anticipates Arista's adjusted earnings to increase at 17% annually through 2027, although its current valuation of 53 times adjusted earnings may seem high [11] - Arista has consistently beaten consensus estimates, with reported earnings averaging 14% above expectations in the last six quarters [12]