11 Best Innovative Stocks to Buy According to Analysts

2. Broadcom Inc. (NASDAQ:AVGO)

Average analysts’ upside: 48.07%

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a global designer and supplier of semiconductor and infrastructure software solutions. Its semiconductor products serve data centers, networking, broadband, wireless, storage, and industrial markets. The company also has an established software portfolio, which consists of cybersecurity, enterprise automation, and mainframe operations. The company’s strong focus on innovation is reflected in its products being used by leading OEMs, cloud providers, and telecom firms around the world.

Broadcom Inc. (NASDAQ:AVGO) is showing strong momentum as it delivered record Q1 2025 results with a total revenue of $14.9 billion, up 25% YoY, and consolidated adjusted EBITDA of $10.1 billion, up 41% YoY. The semiconductor segment generated revenue of $8.2 billion, up 11% YoY, driven by AI revenue of $4.1 billion, which grew by a whopping 77% compared to last year. The infrastructure software segment revenue reached $6.7 billion, up 47% YoY and 15% sequentially. The share of software revenue is growing, which transforms AVGO into a more diversified technology player.

Broadcom Inc. (NASDAQ:AVGO) is making significant R&D investments in next-generation AI technologies, including the development of the industry’s first 2-nanometer AI XPU and advancing networking capabilities to enable AI clusters scaling towards 1 million XPUs. Beyond their current three hyperscale customers, AVGO has engaged with four additional hyperscalers to develop custom accelerators for training next-generation frontier models. In the software segment, the company has successfully converted over 60% of customers to subscription models. As a pioneer in AI-related hardware, AVGO represents one of the best innovative stocks to invest in.