10 Tech News Updates Investors Should Not Miss

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) designs, develops, builds and supplies semiconductor and infrastructure software products. On March 7th, CFRA maintained a buy rating on the company as it maintains its long-term outlook on its relationship with three major hyperscalers. The company is also engaged with four customers that develop custom silicon chips, thus suggesting additional growth opportunities.

Shares of Broadcom surged after the company published its second quarter results on March 6, which exceeded Wall Street’s estimations. Wall Street had projected EPS of $1.51 with a revenue of $14.6 billion, and Broadcom logged an EPS of $1.60 on revenue of $14.92 billion. CEO Hock Tan said that the company is expecting “continued strength in AI semiconductor revenue,” which is projected to reach $4.4 billion in the second quarter. Robust AI sales also prompted KeyBanc Capital Markets to raise the company’s price target from $260 to $275 and maintain its Overweight rating, on March 7.

While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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