10 Best Performing Cybersecurity Stocks in 2024

2. Broadcom Inc. (NASDAQ:AVGO)

Year-to-Date Performance as of November 8: 69.19%

Number of Hedge Fund Holders: 130

Broadcom Inc. (NASDAQ:AVGO) is a global technology powerhouse known for its expertise in semiconductor design, development, and supply, alongside its enterprise software and security solutions. The company’s cybersecurity portfolio includes a range of products, such as its Symantec Enterprise Cloud platform, as well as solutions for payment, mainframe, network, endpoint, and identity security.

In the third quarter, Broadcom Inc. (NASDAQ:AVGO) reported $13.1 billion in revenue, marking a 47% year-over-year increase. This growth was driven by strong AI revenue, VMware bookings, and solid non-AI semiconductor performance. Looking ahead to Q4 2024, Broadcom Inc. (NASDAQ:AVGO) expects its AI revenue to rise 10% sequentially, reaching $3.5 billion, which would bring the total for the year to $12 billion, primarily fueled by ethernet networking and custom AI accelerators for data centers.

On November 5, BofA reaffirmed its Buy rating on AVGO, citing the company’s leadership in AI computing and networking, along with its strong free cash flow. However, the bank lowered its fiscal 2025 earnings forecast due to seasonal challenges, particularly stemming from a product transition with Google’s Tensor Processing Unit (TPU) that is expected to affect revenue in the first half of the year. Still, Broadcom’s position is expected to be buoyed by new AI and networking contracts, along with further opportunities with Apple, potentially leading to adjusted earnings per share of $7.31 by 2026. As AI adoption continues to grow, Broadcom’s focus on high-performance AI networking solutions, especially in complement to NVIDIA’s Blackwell architecture, could potentially strengthen its future prospects.