10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 130

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The firm is expected to benefit from increased AI capital expenditures by hyperscalers in the coming months, leading to strong revenue growth and margin expansion, and suggesting strong upside potential for the shares. Senior Bernstein analyst Stacy Rasgon claims that the company has the second best story in the space after NVIDIA, mostly due to chip and networking product sales to big tech firms. In a recent appearance on CNBC, the analyst said that the AI business had been good enough this year to cover up some nastiness in the core business of the firm, which was general networking. He added that the AI guidance of the firm seemed conservative and recent acquisition activity, like the VMware purchase, had upside to it. He underlined that the firm had the highest margins and highest free cash flow in the chip space.

Bernstein has an Outperform rating on Broadcom Inc. (NASDAQ:AVGO) stock with a price target of $195. In a recent investor note, the advisory noted that the acquisition of VMware was projected to be a significant growth driver for the chip firm in the next year, with a $4 billion revenue run rate expected in the coming quarters, either by the fourth quarter or the first quarter of the next fiscal year. This implied that revenues could surpass $16 billion next year even as gross margins remain stable, buoyed by the growth of software sales.