Sell in May and Go Away? 3 Stocks Where This Old Idea Doesn't Apply
Sell in May and Go Away? 3 Stocks Where This Old Idea Doesn't Apply
Keithen Drury, The Motley FoolTue, May 5, 2026 at 11:05 AM UTC
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Key Points -
Nvidia's growth isn't fully priced into the stock.
Broadcom is seeing huge growth from its custom AI chips.
Nebius could be poised for explosive growth.
10 stocks we like better than Nvidia ›
Sell in May and go away is an old saying among Wall Street traders. The logic is that there isn't a ton of movement during the summer months, because so many people are on vacation. Although there may have been credence to this idea when you had to be in an office to buy or sell stocks, that's no longer the case. As a result, I think it's best to ignore that maxim and focus on the best values in the market.
For me, I believe that's Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Nebius (NASDAQ: NBIS). The value in these stocks is their rapid growth rates, and what each company expects during the next few years makes it obvious that they are strong buys now.
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1. Nvidia
As the world's largest company by market value, there are questions about how high Nvidia can go. I think that is mostly out of the company's hands, as it lies in how much money the artificial intelligence (AI) hyperscalers are willing to spend. Currently, all indications point toward "more." Meta Platforms (NASDAQ: META) just increased its 2026 capital expenditure projection, and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) told investors its 2027 spending plans are a "significant increase" from 2026's.
Nvidia makes the most powerful AI computing chips in the form of its GPUs, and its dominance doesn't show any signs of slipping. All of that adds up to a bright future for Nvidia, and despite its strength, the stock trades for a mere 24 times forward earnings.
NVDA PE Ratio (Forward) Chart
NVDA PE Ratio (Forward) data by YCharts
With Q1's revenue projected to come in about 79% higher than a year ago, according to Wall Street analysts' estimates, Nvidia is an excellent stock to buy in May. Nvidia tends to have a significant run-up to end the year, and one of those could start in May, making now the perfect time to buy.
2. Broadcom
Broadcom is another company riding on the same spending wave as Nvidia. Instead of making GPUs like Nvidia, it's developing custom AI chips with AI hyperscalers. One shining example of Broadcom's partnership is the Tensor Processing Unit (TPU), which it designed with Alphabet. The TPU is a hot commodity in the AI training world right now, and leading AI firms like Anthropic (the makers of Claude) partially utilize TPUs for training.
Management expects explosive growth from this business unit, and projects annual revenue of more than $100 billion by the end of 2027. For reference, the business unit where this segment is currently accounted for had Q1 revenue of $8.4 billion. There are other products in that division, but Broadcom still expects to at least triple its custom chip revenue bet now and next year.
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That's major growth, and I think it highlights why Broadcom is an excellent stock to buy now and hold.
3. Nebius
Both Nvidia and Broadcom are multi-trillion dollar companies, and Nebius is much smaller. However, that doesn't mean that it isn't a worthy investment. Nebius is a neocloud company, meaning it's an AI-focused cloud computing business. It has deep partnerships with Nvidia and gains early access to its leading technology. That's a big advantage over the competition, and it cannot be replicated.
It's experiencing explosive growth, and Wall Street estimates that it will grow at a 523% pace this year and a 206% clip next year. That's about as fast a growth rate as you'll ever see, and I think the market isn't fully pricing in this growth, as it's hard to believe. However, between the huge AI demand out there and Nebius' purpose-built offering, it looks like a great investment opportunity.
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Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
Source: “AOL Money”
