12 Best Tech Stocks to Buy For Long-Term Investment

10. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a tech company that designs, develops, and supplies various semiconductor devices. It focuses on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. It operates in two segments: Semiconductor Solutions and Infrastructure Software.

The company’s Semiconductor Solutions improved its revenue by 11% year-over-year in FQ1 2025 to generate an amount of $8.2 billion. A lot of this was the segment’s AI revenue, which reached $4.1 billion alone, and marked a surge of 77%. In FQ2, the company expects AI revenue to increase by 44%. This growth comes from hyperscale customers who heavily invest in next-gen AI models. Three of these major hyperscale clients are expected to create a SAM of $60-$90 billion by FY27.

Additionally, Broadcom Inc. (NASDAQ:AVGO) is working with such clients to develop systems that will support massive AI clusters, ranging from 500,000 to 1,000,000 AI accelerators. The company is also developing cutting-edge technologies like two-nanometer AI XPUs with 3.5D packaging, which targets a performance of 10,000 teraflops. It’s working on the next-generation 100 terabit Tomahawk 6 switch to support the scaling of large AI clusters. On March 7, Piper Sandler reiterated its Overweight rating on the company with a $250 price target due to its strong performance driven by AI growth.

Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”