7) Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holdings: 130
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductor and infrastructure software solutions.
Wall Street analysts opine that Broadcom Inc. (NASDAQ:AVGO)’s long-term growth trajectory is expected to be aided by its competitive advantages, which stem from intangible assets in chip design and switching costs for the software products. The company plans to continue its focus on hyperscalers, cloud, and digital natives for AI products. Broadcom Inc. (NASDAQ:AVGO) anticipates a recovery in non-AI markets and robust AI revenue growth in fiscal 2025.
Its strategic financial management, which includes debt restructuring and dividend payouts, demonstrates a commitment to maintaining a healthy balance sheet while, at the same time, delivering value to shareholders. Its focus on AI and collaboration with Seagate reflect its emphasis on innovation and market trends. Broadcom Inc. (NASDAQ:AVGO) has been positioning itself for strong growth in the rapidly evolving tech landscape.
The company is a critical player in the AI revolution, leveraging expertise in custom silicon and networking solutions in a bid to tap a substantial share of the expanding market. The robust demand for its AI accelerators and Ethernet solutions should continue to aid its topline. Broadcom Inc. (NASDAQ:AVGO)’s strong position in custom AI silicon and high-speed networking solutions position it as the leader in the AI revolution.
Analysts at Mizuho increased their price objective on shares of Broadcom Inc. (NASDAQ:AVGO) from $190.00 to $220.00, giving an “Outperform” rating on 14th October. Baron Funds, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“We continued to build our position in Broadcom Inc. (NASDAQ:AVGO), a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. As AI continues to proliferate, we believe hyperscalers – such as Meta, Microsoft Azure, Google Cloud Compute, and Amazon Web Services, to name just a few – will increasingly deploy custom accelerator chips for their AI workloads as they can be more cost-effective and energy-efficient than using NVIDIA’s general-purpose GPUs. Broadcom has a leading position partnering with hyperscalers to develop these custom chips, with its AI customer accelerator business up 3.5-times year-over-year in its most recently reported quarter, and a goal of at least $8 billion in custom accelerator revenues for this fiscal year. Additionally, VMware continues to perform better than expected as Broadcom is implementing its product simplification and subscription revenue model strategy. Further, its non-AI related semiconductor business, which tends to be more cyclical, is in the early stages of a recovery. Combined, all these factors will drive strong revenue and earnings growth over the next several years.”
