10 Best Growth Stocks To Invest In Now

7. Broadcom Inc. (NASDAQ:AVGO)

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). The company serves the data center, networking, software, broadband, storage, and wireless markets. During the third quarter, Broadcom Inc. (NASDAQ:AVGO) generated $13.1 billion in revenue, up by 47% year over year. The growth in revenue and operating profits was driven by AI revenue, VMware bookings, and sustained non-AI semiconductor revenue. In the fiscal fourth quarter of 2024, Broadcom expects revenue from AI 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.

AVGO’s CEO expects a solid opportunity from AI over the next few years, and some strategists agree. On December 14, Laffer Tengler Investments CEO and CIO, Nancy Tengler, joined Yahoo Finance to discuss her position on AVGO. She categorized AVGO as a long-term stock and emphasized that it is a “well-operated company” with solid fundamentals. She also added that the AI spending is “not over” and expects AVGO to benefit from that. Overall, Broadcom Inc.’s (NASDAQ:AVGO) cloud computing platform for enterprises promises a solid growth opportunity as it leverages artificial intelligence.

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.”