10 AI News Investors Should Not Miss

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On December 4^th, HSBC analysts initiated coverage of chipmaker Broadcom Inc. (NASDAQ:AVGO) with a “Hold” rating and a price target of $160 per share. The rating initiation comes from Broadcom’s increasing revenue exposure from artificial intelligence. As of Q3 2024, the company saw its revenues rise 47% to $13.1 billion, fueled by strong demand for AI semiconductor solutions and VMware.

The analysts told investors in a research note that Broadcom’s valuation has risen significantly, now trading at 27 times its estimated earnings for fiscal 2025, compared to 18 times previously. However, the firm believes there is no room for further upside since the stock is already trading at a higher valuation than its competitors Nvidia and AMD. This is why the firm sees a less attractive risk/reward for Broadcom.