10 AI Stocks Taking Wall Street by Storm

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a technology company offering custom chips and networking assets. One of the biggest analyst calls for December 16 was issued for Broadcom. Goldman Sachs reiterated the company as a “Buy” and raised its price target to $240.00 from $190.00. The firm said it is sticking with the stock after the company’s earnings last week. It also believes that Broadcom is one of the key enablers of AI. Its custom chips and semiconductors, such as ASICs (Application-Specific Integrated Circuits) and networking solutions, play a key role in building and scaling AI systems. In short, they are the “nervous system” that connects different components of an AI infrastructure.

“Bottom line, we reiterate our Buy rating on AVGO with an updated 12-month price target of $240 (up from $190 prior) and continue to view the company as one of the key enablers of Gen AI”.

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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