10 AI News That Broke The Internet

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1.     Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO), a technology company, offers custom chip offerings and networking assets that has helped it establish a strong position in the AI space. On December 9, JP Morgan analyst Harlan Sur maintained an Overweight rating on Broadcom Inc (NASDAQ:AVGO) with a price target of $210. With the technology company set to report its earnings on Thursday, the firm remains bullish on the stock on the back of a strong demand profile for AI products, continued cyclical recovery in its diversified semiconductor (ex-AI) end markets, and unlocked VMWare revenue synergy.

Sur affirmed that software renewals from major corporate customers will lead to strong growth in the VMWare business, a cloud computing technology company that Broadcom acquired in November 2023. Overall, the analyst projects revenue and EPS upside for the full year, continued strong demand for AI products, and a coordinated end market recovery in its diversified semiconductor (ex-AI) end markets for fiscal year 2025. With a $30 billion pipeline of AI revenue opportunities per AI customer over the next 4-5 years, and strong VMWare momentum, Sur projects strong dividend growth and sustained AI leadership for the company.

“Broadcom is set to report October quarter (F4Q24) earnings Thursday, and we continued to see a strong demand profile for its AI products combined with continued cyclical recovery in its diversified semiconductor (ex-AI) end markets (e.g., enterprise, server/storage) and VMWare revenue synergy unlock.”

While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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