10 Best Stocks to Buy For Long Term Growth

8. 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). 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.

2024 has been incredible for AVGO. Earlier this year, the company launched breakthrough technologies able to manage AI tasks and scalable AI systems. On November 5th, the company unveiled VeloRAIN, a platform that uses artificial intelligence and machine learning to improve the performance of AI security workloads. On the same day, the company launched a private cloud platform under its VMware Cloud Foundation to improve customers’ AI autonomy and security.

The company also forged prominent partnerships throughout the year. To align with its strategic trajectory, on November 5, the company expanded its partnership with Telia to revolutionize Telco and Cloud infrastructure. Overall, Broadcom Inc. (NASDAQ:AVGO) 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 in Q4 2024.

Broadcom Inc.’s (NASDAQ:AVGO) emphasis on introducing groundbreaking technologies is immense and is also its economic moat. At the moment, company officials believe AVGO is finally achieving stability on a company-wide level and is on track to becoming a technology powerhouse.

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.”