10 AI Stocks Everyone is Talking About These Days

4. Broadcom Inc (NASDAQ:AVGO)

Number of Hedge Fund Investors: 128

Sara Kunst from Cleo Capital said in a latest program on CNBC that Broadcom will remain a key AI player in the chips space. When asked whether Nvidia’s continuous rise would impact Broadcom Inc (NASDAQ:AVGO) negatively, the investor said:

“What we’ve seen over the last year or so is that once the market finds a new old—in most cases, these aren’t new companies—you know, AI companies, they tend to double down on it for a while. So I would guess that Broadcom Inc (NASDAQ:AVGO) is going to have a good run as long as their fundamentals can continue to be good. I think that the market has a lot of appetite for new AI names, and I suspect that those are going to remain kind of the darlings for a while.”

Baron Opportunity Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q3 2024 investor letter:

“We continued to build our position in Broadcom Inc. (NASDAQ:AVGO), a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. As AI continues to proliferate, we believe hyperscalers – such as Meta, Microsoft Azure, Google Cloud Compute, and Amazon Web Services, to name just a few – will increasingly deploy custom accelerator chips for their AI workloads as they can be more cost-effective and energy-efficient than using NVIDIA’s general-purpose GPUs. Broadcom has a leading position partnering with hyperscalers to develop these custom chips, with its AI customer accelerator business up 3.5-times year-over-year in its most recently reported quarter, and a goal of at least $8 billion in custom accelerator revenues for this fiscal year. Additionally, VMware continues to perform better than expected as Broadcom is implementing its product simplification and subscription revenue model strategy. Further, its non-AI related semiconductor business, which tends to be more cyclical, is in the early stages of a recovery. Combined, all these factors will drive strong revenue and earnings growth over the next several years.”