10 Stocks That Will Benefit From AI

6. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders In Q3 2024: 128

Broadcom Inc. (NASDAQ:AVGO) is one of the biggest players in the semiconductor design industry. It is also a diversified technology firm that benefits from having a sizable software business under its wing. On the semiconductor front, Broadcom Inc. (NASDAQ:AVGO)’s modems and other products are used across a multitude of personal computing devices. This division also lends the firm the potential to generate additional favorable catalysts from the AI industry through custom chip design. NVIDIA’s chips are among the most expensive and contested products in the world which has led to tight supply. Consequently, should firms like OpenAI turn to Broadcom Inc. (NASDAQ:AVGO) to design custom processors, the firm could add more AI tailwinds. On the flip side, the loss of key orders, such as those from Apple could create trouble.

Columbia Threadneedle Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q3 2024 investor letter. Here is what the fund said:

“Similar to the earnings results for Nvidia, shares of Broadcom Inc. (NASDAQ:AVGO) initially sold off after the company reported solid earnings that fell light of elevated market expectations, but the stock did recover from its drawdown in the matter of a few weeks. With an enticing combination of custom chip offerings as well as networking assets, Broadcom remains one of the best positioned companies as part of the AI revolution. Broadcom outlined a path to derive a majority of its revenue from the AI end market within a couple of years, and the non-AI part of the business has stabilized after a deep correction. The company’s dominant market position in its end markets, along with durable growth, strong margins and best-in-class capital allocation, presents an opportunity to compound capital over time.”