12 Best FAANG+ Stocks to Invest in Right Now

8. Broadcom Inc. (NASDAQ:AVGO)

Number of hedge funds: 128

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. The company’s products play a crucial role in enterprise and data center networking, broadband access, storage systems, smartphones, and wireless communications. Broadcom’s extensive portfolio includes solutions for data center networking, storage, and security, making it a key player in the data center ecosystem. It also provides infrastructure software solutions such as Private Cloud, Tanzu, and VeloCloud to help enterprises develop, deliver, automate, manage, and secure their applications. Its market cap currently stands at $1.0 trillion, up from $144 billion five years ago.

Broadcom Inc. (NASDAQ:AVGO) boasts one of the industry’s broadest IP portfolios, with around 21,000 patents. The company has been focusing on expanding its data center solutions, particularly in networking and storage. Broadcom is well-positioned to benefit from the growing demand for high-speed connectivity and data processing capabilities driven by the rise of cloud computing and AI applications. Recent advancements in 5G technology and strategic acquisitions, such as VMWare in 2023 and Symantec in 2019, have further strengthened Broadcom’s market position, enabling it to capture a larger share of the data center infrastructure market.

In December 2024, Broadcom Inc. (NASDAQ:AVGO) reported strong earnings, with full-year 2024 revenue growing 44% year-over-year (YoY) to $51.6 billion. The ‘Infrastructure Software’ segment revenue grew to $21.5 billion, driven by the successful integration of VMware, while the ‘Semiconductor’ segment revenue rose 7% YoY to $30.1 billion, fueled by AI revenue, which surged 220% YoY. On the impressive AI revenue growth, the company’s CEO noted:

“We see our opportunity over the next three years in AI as massive. We currently have three hyper-scale customers who have developed their own multi-generational AI XPU road map to be deployed at varying rates over the next three years. In 2027, we believe each of them plans to deploy one million XPU clusters across a single fabric. We expect this to represent an AI revenue serviceable addressable market, or SAM, for XPUs and network in the range of $60 billion to $90 billion in fiscal 2027 alone. We are very well positioned to achieve a leading market share in this opportunity and expect this will drive a strong ramp from our 2024 AI revenue base of $12.2 billion.”