10 Buzzing AI Stocks According to Goldman Sachs

8. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 130 

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. Charlie Kawwas, the president of the firm, spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, saying that increased spending by the large Tier-1 hyperscalers would drive growth in the AI semiconductor business of Broadcom in fiscal 2025. In light of this, per Kawwas, Broadcom had positively revised its fiscal 2024 AI semiconductor revenue outlook from $7.5 billion at the beginning of fiscal 2024 to $12 billion earlier this month Kawwas also reiterated Broadcom’s deep focus on markets where it could build a sustainable franchise founded on technological leadership.

Kawwas shared that Broadcom Inc. (NASDAQ:AVGO) had a central engineering team that developed foundational technologies like accelerators. He noted that custom accelerators had benefits over merchant solutions like GPUs, particularly when addressing internal workloads at hyperscalers with consumer platforms. He also predicted that Ethernet would prevail as the preferred AI networking protocol for hyperscalers due to its open-sourced nature and superior power efficiency.