AI Stocks: Microsoft & Broadcom - Prime Buy

0:00The AI trade hit some serious bumps in 2026, was stock selling off hard and investor nerves on edge. But Morningstar is calling it a prime buying moment for two solid dividend payers, Microsoft and Broadcom. Both have wide economic modes, meaning tough to beat advantages, and they're trading way below what they're really worth. These picks stand out, because they're profitable, growing fast, and hooked on sharing gains with shareholders. Microsoft dishes out $3.64 per share yearly, with a yield around 0.98% and its height dividends. For 21 straight years, Broadcom pays $2.60 annually, yielding about 0.85%, with 14 years of raises averaging over 30% growth. Investor sentiment flips quick after the early hype, leaving many folks spooked by the volatility. Still, these companies anchor the AI boom without the wild swings. Microsoft's Azure Cloud is a $75 billion beast, growing 30% a year, boosted by its open

1:03AI ties. Broadcom dominates custom AI chips, serving giants like Google, Meta, and Soon Open AI. Recent numbers back the hype. Broadcom's AI chips sales jumped 106% to $8.4 billion last quarter, with $10.7 billion guided next. Running star slaps a 5-star rating on Microsoft at a $600 fair value, saying it's 62% undervalued, while Broadcom's set up screen's long-term chip demand. For those playing the long game, these aren't flashing the pan yields, but reliable engines fueled by AI tailwinds that look ready to accelerate. This has been Durham News Today, powered by AI.