10 AI Stocks That Will Skyrocket

5. Broadcom Inc. (NASDAQ:AVGO)

Street High Upside as of December 3, 2024: 44%

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) designs and develops a range of semiconductor products and is well known for making application-specific integrated circuits (ASICs). It also provides infrastructure software products. Some of its products include cable modems, networking processors, and storage adapters. The company serves the data center, networking, software, broadband, storage, and wireless markets.

During 2024, Broadcom (NASDAQ:AVGO) launched breakthrough technologies that facilitate the management of large datasets for AI tasks, positioning it as an innovative leader. Aligning with its position, on November 15, the company unveiled VeloRAIN, a platform empowering AI networking beyond data centers. On the same day, AVGO, extended its offerings to offer a private cloud platform to accelerate customers’ autonomy over AI workloads.

Broadcom’s (NASDAQ:AVGO) cloud computing platform for enterprises promises a solid growth opportunity as it leverages artificial intelligence. AVGO’s revenue from AI is expected to grow by 10% sequentially to $3.5 billion, bringing the full-year total to $12 billion, driven by ethernet networking and custom accelerators for AI data centers. Analysts are also bullish on the stock and their high price target represents an upside of 44% from current levels.

ClearBridge Investments’ ClearBridge Large Cap Value Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q3 2024 investor letter:

“In IT, we bought Broadcom Inc. (NASDAQ:AVGO) as we believe the company has a long runway for growth with its custom silicon business, which should be more durable and less volatile than other components within the AI food chain. We also believe the acquisition of VMware creates another opportunity for steady, subscription-based durable growth that is still in its early innings. We believe the stock has an attractive risk/reward profile given the reasonable visibility toward mid-teens EPS growth at a low-20s P/E multiple. We made room for Broadcom by exiting Lam Research, whose shares we believed priced in a full recovery, while we grew increasingly concerned that China exposure might create an air pocket.”