These companies are cashing in on AI.

The AI market is booming. Bain projects the total addressable market for AI hardware and software will grow 40%-55% annually, reaching $780 billion to $990 billion by 2027.

This growth is enabling companies that provide AI tools, such as chips for data centers, to benefit as demand surges for infrastructure supporting AI applications. Nvidia ( NVDA -0.77% ) and Broadcom ( AVGO -0.00% ) stand out as early leaders of the AI megatrend. They're turning into cash-flow machines. Both are producing such an abundance of cash that they're returning most of their growing windfalls to shareholders.

1. An AI-powered cash-flow machine

Nvidia pioneered GPU-accelerated computing, a technology that leverages specialized semiconductors and algori

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