10 Hot AI Stocks to Buy Now

6. Broadcom Inc. (NASDAQ:AVGO)

Magnitude of revision in street 2026 EPS estimates: +25%

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a leading global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions used in a wide array of applications, ranging from networking and broadband communications to enterprise data centers and industrial systems. Its diverse product lineup includes chips and integrated circuits that enable high-speed data transfer and connectivity, powering everything from smartphones and servers to automotive systems and cloud infrastructure.

In light of recent market disruptions driven by the emergence of low-cost, high-performance AI models, Broadcom Inc. (NASDAQ:AVGO) faces a set of potential opportunities. The company’s extensive and diversified product portfolio positions it well to benefit from increased demand in data center connectivity and network infrastructure, which are essential for supporting advanced AI workloads. AVGO’s strong position is confirmed by a transformative fiscal 2024, with consolidated revenue growing by a whopping 44% YoY, driven by two significant factors: the successful integration of VMware and the growth in AI revenue. AI revenue grew 220% to $12.2 billion in fiscal 2024, representing 41% of total semiconductor revenue. Looking forward, management sees a massive AI opportunity over the next 3 years, with an estimated AI revenue serviceable addressable market of $60 billion to $90 billion in fiscal 2027 alone. During the recent 4Q 2024 earnings call, management communicated the expectation for Broadcom Inc. (NASDAQ:AVGO)’s AI semiconductor business to rapidly outgrow the non-AI semiconductor business going forward.