10 Best Semiconductor Stocks to Buy According to Billionaires

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Billionaire Investors: 25

Billionaire Holdings: $14.5 billion

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Its products are used in end products such as enterprise and data center networking, including AI networking and connectivity, home connectivity, broadband access, smartphones and base stations, data center servers and storage systems, and factory automation.

Following the results, Morgan Stanley analyst Joseph Moore increased Broadcom Inc. (NASDAQ:AVGO) price target from $246 to $260 and reiterated an Overweight rating. The analyst believes the quarter should ease concerns following disappointing performance by one of the peers. He highlighted the company’s over 40% quarter-over-quarter growth in Ethernet AI as a key strength from the results. Additionally, the company highlighted two potential long-term customers for its custom xPU solutions, reinforcing its growth outlook.

Around the same time, a Truist Securities analyst also raised the price target from $260 to $267 and maintained his Buy rating in a post-results note. Notwithstanding the healthy Q1 outperformance, Q2 guidance relied on AI-driven growth offsetting softness elsewhere. The analyst was also positive after management reported four potential customers that could drive annual sales growth beyond 30%.