12 Best Long-Term Growth Stocks to Buy Now

7. Broadcom Inc. (NASDAQ:AVGO)

5-Year Revenue Growth: 17.94%

Number of Hedge Funds: 128

Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company specializing in semiconductor and infrastructure software products. In fiscal Q4 2024, the company reported a 51% year-over-year revenue increase, reaching $14.05 billion. Its adjusted earnings per share also grew by 28% to $1.42. The company expects this momentum to continue, projecting revenues of $14.6 billion in fiscal Q1 2025.

Broadcom Inc. (NASDAQ:AVGO) has also estimated considerable growth in its AI-related revenue, projecting a serviceable addressable market of $60–90 billion by fiscal 2027, driven primarily through partnerships with major hyperscalers like Google, Meta Platforms, and ByteDance.

One of the company’s most substantial growth opportunities comes from its application-specific integrated circuits (ASICs) used in AI data center infrastructure. Prominent tech companies across the globe employ Broadcom Inc.’s (NASDAQ:AVGO) chips for AI needs, and an estimated increase in spending may boost further demand.

Aristotle Atlantic Core Equity Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as its third-quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, including contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.”