Three years ago, Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices Inc (NASDAQ:AMD), and Broadcom Inc (NASDAQ:AVGO) were collectively worth about $600 billion. Today, that number has ballooned to nearly $6.8 trillion.
I/O Fund CEO and Lead Tech Analyst Beth Kindig highlighted the tenfold surge on X, and investors aren't blinking.
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Read Also: Nvidia Skyrockets A Stunning 475% Vs. Mag 7 Since 2022
AI's Golden Triad Rewrites Market Gravity
The three firms have become the backbone of the semiconductor revolution. Nvidia leads the charge, commanding valuation premiums that make old-school investors wince — its forward P/E of 42.5x is 64% above the sector median. AMD and Broadcom aren't far behind, trading at multiples more than double their historical norms.
But when earnings are compounding faster than expectations, valuation gravity loses its pull. In the AI era, these names aren't just growth stocks — they're infrastructure.
Smart Money's Still Buying the Silicon Story
Despite the eye-popping numbers, institutional investors remain firmly in the game. Hedge funds increased semiconductor exposure through 2025, betting that AI spending — from hyperscalers to enterprises — is still in the early innings.
Broadcom's diversification into networking and custom silicon has strengthened the bull case, while AMD's growing GPU presence is positioning it as the alternative AI engine.
Nvidia, of course, remains the poster child — turning compute power into Wall Street's most valuable commodity.
Wall Street analysts still have a Buy call on these stocks with recent ratings pointing to 45%, 13% and 16% upside for NVDA, AMD and AVGO stock, respectively.
Valuations Look Stretched — But So Does the AI Runway
Skeptics call it Silicon Inflation; optimists call it the new normal. Even as all three trade at 100%-plus premiums to the sector, few are ready to step aside. The market seems convinced that as long as AI demand compounds, earnings will eventually catch up to price.
Don't Fight the Chips
With Nvidia, AMD, and Broadcom up 1,000% in just three years, chasing them may look reckless — but fighting them has been costlier. Until AI growth hits a ceiling, investors are likely to keep treating every pullback as a buying opportunity in the market's most powerful trio.
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