5 Compelling Stocks Worth Buying More Of Right Now (Including Broadcom)
2026-07-21 15:15
•Micah Zimmerman •The Motley Fool
•••••••• ••••••••••• Axe Capital view
AI and Connectivity: The New Frontier for Selective JSE Plays
Global AI infrastructure leaders signal clear themes for South African investors, with select telecom and tech proxies on the JSE worth watching.
Broadcom’s role in custom AI chips and networking gear puts it at the center of a massive global upgrade in data infrastructure. While Broadcom itself isn’t on the JSE, the tech giant’s prominence underlines why investors should look at local names like Prosus and Naspers. These companies hold significant stakes in global internet and cloud leaders and could benefit indirectly from AI-driven demand. On the telecom front, T-Mobile’s bullish broadband growth and Verizon’s fiber expansion have no perfect JSE match, but MTN offers exposure to telecom growth and connectivity trends in Africa. The USD/ZAR exchange rate will be a key barometer here—continued rand weakness could dampen returns even if the underlying businesses thrive. But if you believe AI infrastructure will reshape industries and connectivity remains critical, it’s worth selectively adding to these counters. Beware, steep valuations and global political uncertainties could delay gains and pressure sentiment. this is just my opinion and not financial advice
Buy Prosus and Naspers selectively for tech/AI exposure through their global holdings, and keep a close watch on MTN for telecom-driven growth in Africa. Use USD/ZAR trends as a currency risk gauge.
- Prosus
- Naspers
- MTN
- USD/ZAR
- Rand volatility undermining returns
- Global AI growth slower than expected
- Geopolitical tensions impacting supply chains
6/10
The article recommends five stocks positioned to benefit from AI infrastructure build-out and connectivity demand: Broadcom (custom AI chips and networking), Taiwan Semiconductor Manufacturing (foundry services), Alphabet (search, cloud, and AI), T-Mobile (telecom growth via home internet), and Verizon (fiber expansion and dividends). While acknowledging risks including elevated valuations and geopolitical concerns, the author suggests gradually adding to positions that align with long-term investment goals.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Micah Zimmerman
Categories: Equities, Earnings, M&A, Capital Returns, Geopolitics, Technology, AI, Semiconductors
Tickers: AVGO, TSM, GOOG, GOOGL, GOOGM, GOOGN, TMUS, TMUSI, TMUSL, TMUSZ, VZ
Sentiment: Positive - Described as 'one of the most important companies in AI' with dominant market position in custom AI chips and networking gear, massive AI order backlog, and diversified revenue streams providing stability. Positioned as an irreplaceable chokepoint in AI economy with 'extremely robust' AI demand, raised growth outlook, and $100 billion investment in advanced manufacturing capacity.
Keywords: artificial intelligence, semiconductor, chip design, data center, connectivity, broadband, fiber, telecom
Insights:
- AVGO: Positive: Described as 'one of the most important companies in AI' with dominant market position in custom AI chips and networking gear, massive AI order backlog, and diversified revenue streams providing stability.
- TSM: Positive: Positioned as an irreplaceable chokepoint in AI economy with 'extremely robust' AI demand, raised growth outlook, and $100 billion investment in advanced manufacturing capacity.
- GOOG: Positive: Combines profitable search business with fast-growing cloud and leading AI models; endorsed by Berkshire Hathaway's large stake; weaving AI across products rather than facing disruption.