Not automatically. Broadcom and Applied Digital are the two alternatives named in The Motley Fool’s October 3, 2026 article, but neither is a like-for-like replacement for Palantir. Broadcom sells AI-related chips and networking equipment and has a software business; Applied Digital develops and operates data-center capacity for AI workloads. They offer different kinds of exposure, with different risks. Whether either belongs in your portfolio depends on its current valuation, financial resilience, execution and your tolerance for risk—not simply on enthusiasm for AI.
How these stocks differ from Palantir
The title can sound like a choice among three comparable AI companies. It is not. Palantir is the software company in this comparison; Broadcom and Applied Digital are presented as ways to invest in infrastructure used to build and run AI systems. That distinction matters: demand for AI software does not automatically translate into equal demand or returns for chipmakers, networking suppliers and data-center developers.
The Motley Fool article frames Broadcom as the comparatively steadier choice and Applied Digital as the higher-risk, potentially higher-reward one. Those are the author’s judgments, not a verified ranking of investment risk. A company’s place in the AI supply chain does not establish that its stock is cheap, financially resilient or suitable for a particular investor.
What the two alternatives actually do
| Company | AI exposure described in the article | What the investment thesis depends on | What the article establishes—and does not |
|---|---|---|---|
| Broadcom (NASDAQ: AVGO) | Custom AI chips, networking equipment and software, including VMware AI Factory. | Continued demand for custom silicon and networking, alongside performance from its software business. | The Motley Fool article reports that AI semiconductor revenue more than tripled year over year in the last quarter and that management raised its longer-term AI revenue outlook. It does not identify the quarter, exact revenue figure or guidance amount. |
| Applied Digital (NASDAQ: APLD) | Development and operation of data-center campuses and capacity intended for AI workloads. | Financing, construction, leasing and delivery of data-center capacity. | The Motley Fool article reports $36 billion in contracted capacity across three deals with an investment-grade hyperscaler at different campuses. It does not state the accounting definition, contract duration, contingencies or recognition schedule, so the figure cannot be treated as booked revenue or guaranteed cash flow. |
What the reported figures can—and cannot—tell you
Broadcom’s reported AI growth
The more-than-threefold year-over-year increase in Broadcom AI semiconductor revenue is a claim reported by The Motley Fool on October 3, 2026. Without the quarter, revenue base and exact figure, it is not enough to calculate a growth rate, judge how large AI is within Broadcom, or determine whether that pace is sustainable. The article also says management raised its longer-term AI revenue outlook, but the available account does not give the revised outlook or its assumptions.
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Before relying on either point, check Broadcom’s relevant earnings materials for the period covered, the definition of AI semiconductor revenue and management’s exact guidance. A fast-growing business can still disappoint if expectations are already reflected in the share price.
Applied Digital’s contracted capacity
The article’s $36 billion figure describes reported contracted capacity, not an amount established as recognized revenue, profit or cash received. Its commercial meaning depends on contract terms and delivery over time. The available account does not provide the duration, cancellation conditions, contingencies or revenue-recognition assumptions needed to assess how much economic value the contracts represent.
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The Motley Fool article also reports that Applied Digital’s Polaris Forge 1 began operations. That status and the contract details should be checked against company disclosures before being used to assess operating performance. The article reports a move to separate the cloud services business into ChronoScale (CHRN), leaving Applied Digital to focus on AI campuses; the terms and completion status of that corporate development are not independently established here.
Risks to weigh before choosing
Broadcom: diversified business, but not a risk-free AI bet
The article’s case for Broadcom rests on exposure to custom chips and networking as well as software. Its business mix may differ from that of a company concentrated on data-center development, but diversification alone does not establish lower volatility, attractive valuation or protection from weaker AI spending. Consider how much of the investment case depends on continued hyperscaler demand, and examine the company’s financial results and guidance rather than relying on an unspecified growth claim.
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A data-center developer must turn planned capacity into completed, operating facilities and meet customer requirements. That makes construction, financing, leasing and delivery central to the thesis. A large contracted-capacity figure does not, by itself, resolve those risks or show when projects will contribute revenue and cash flow. Review the company’s filings for funding needs, obligations, project timelines and customer concentration.
Both: price still matters
The available article summary does not establish a current valuation or a comparable assessment of financial resilience for Broadcom, Applied Digital and Palantir. Without current share prices and financial statements, it cannot show which stock offers the best prospective return. Compare valuation against each company’s own earnings, cash flows, growth expectations and risks; do not infer that one is a better buy merely because its business sounds more directly connected to AI.
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A practical way to decide
- Define the exposure you want. Decide whether you want a software business, a supplier of AI chips and networking, or a developer of data-center capacity. These are different bets, even when all are linked to AI demand.
- Check the primary disclosures. For Broadcom, verify the period and definitions behind AI revenue and the exact terms of management’s outlook. For Applied Digital, examine the contracts, project schedules, financing and recognition assumptions behind reported capacity. For Palantir, review its own disclosures rather than assuming its prospects track infrastructure spending.
- Compare valuation and financial resilience. Use up-to-date market data and company filings for all three. Assess what expectations are embedded in each share price and whether the balance sheet and cash generation can support the business plan.
- Match the risk to your portfolio and time horizon. Consider how much concentration, construction or financing risk you can tolerate, and whether you can withstand a long delay or a sharp decline. A higher-risk thesis is not automatically appropriate just because it may offer greater upside.
So, should you forget Palantir?
No single answer follows from the available comparison. Broadcom may be worth investigating if you want AI-infrastructure exposure through chips, networking and software; Applied Digital may suit an investor deliberately seeking a more concentrated data-center development thesis and able to accept its execution and financing risks. Neither conclusion establishes that either stock is a better buy than Palantir at today’s price. Make that call only after comparing current valuations, company disclosures and your own risk tolerance.
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