The September Effect is a well-known trend in the stock market. September is the only month in the year where the market averages a negative return (February is also technically negative, but it’s nearly break-even). That’s a noteworthy effect, and many investors choose to ignore the month of September for this reason.
However, October, November, and December have some of the best returns by month on average, so positioning your portfolio wisely in September to take advantage of a potential sell-off is prudent investing. Three stocks that I think are well worth buying now due to their potential to rise toward the end of the year are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Micron (NASDAQ: MU).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
I’m a firm believer that these three will end the year on a high note, and they are great candidates to ignore the September Effect.
The AI buildout isn’t slowing
All three of these companies have one thing in common: They are thriving from the AI buildout. They are critical suppliers in this industry, and without them, AI wouldn’t look the same.
Nvidia makes GPUs, which are broad-purpose computing units that have been widely deployed by every AI hyperscaler. Nvidia holds the largest market share in AI-accelerated computing units by far, and its dominance has led it to become the largest company in the world by market cap.
Broadcom is challenging Nvidia on the AI computing front by taking a different path. While Nvidia’s GPUs excel in a variety of scenarios, sometimes a specialized computing unit makes the most sense from a financial standpoint. Many AI hyperscalers realize this, which is why they’ve partnered with Broadcom to design and produce custom AI chips. These offer advantages in some scenarios over Nvidia’s GPUs and are rising in popularity.
Micron makes memory chips, which are a major component of computing units from Nvidia and Broadcom. While there are several suppliers in the memory chip space, the combined capacity is not enough to meet the demand that the data center buildout is generating. As a result, prices for memory chips have skyrocketed, and Micron and its peers are making a fortune from it. It be mid-2027 and into 2028 before more production capacity is up and running.
The AI buildout is far from over, and isn’t slowing. Nvidia noted that the big five AI hyperscalers will spend nearly $800 billion on capital expenditures in 2026, with that figure expected to rise to $1.3 trillion in 2027. By the end of the decade, Nvidia expects worldwide annual capital expenditures to total $3 trillion to $4 trillion. If that pans out, there’s a ton of growth ahead for these three, but the market isn’t respecting that right now.
