10 AI Stocks on Wall Street’s Radar Right Now

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On Friday, February 28, Wells Fargo analyst Aaron Rakers maintained a “Hold” rating on the stock and kept the price target at $230.00. The firm contends that even though it is optimistic about Broadcom’s role in AI infrastructure and networking, and that AI networking revenue and custom AI ASICs are expected to grow, certain concerns are hampering this optimism.

One such concern is Apple shifting to internally developed chips, which has the potential to impact Broadcom’s wireless revenue, since Apple is a major customer of Broadcom. In addition, while it is true that Broadcom is expected to gain from AI demand, a slowdown in non-AI semiconductors and uncertain future orders from major clients like Microsoft and Google contribute to a cautious outlook.