13 NASDAQ Stocks with the Highest Upside Potential

4. Broadcom Inc. (NASDAQ:AVGO)

Average Upside Potential as of April 8: 62.19%

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) specializes in various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. Its products are used in many enterprise and data center networking applications, like AI networking and connectivity, home connectivity, and broadband access.

The company’s revenue from XPU and AI-related networking reached $4.1 billion in the FQ1 2025, which was up 77% year-over-year. This AI semiconductor revenue is projected to be $4.4 billion in FQ2, which will mark a 42% rise. This is fueled by the company’s shipments of networking solutions to hyperscale customers who are investing in next-gen AI models. The company anticipates a $60 to $90 billion SAM from its three primary hyperscale customers by the full fiscal year 2027. Four additional hyperscale customers are now already collaborating with it to develop custom AI accelerators.

On March 7, Piper Sandler reaffirmed an Overweight rating for the company with a $250 price target because of its AI and networking growth. Later the same month, the company also announced that it expanded its 200G/lane DSP PHY portfolio by introducing Sian3 and Sian2M, which are designed to improve AI/ML cluster connectivity. These DSPs optimize power usage in single-mode and short-reach multi-mode fiber links for 800G and 1.6T optical transceivers.

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.”