15 AI News Updates That Broke The Internet

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a technology company engaged in the design, development, and supply of a broad range of semiconductor, enterprise software, and security solutions. Its custom chip offerings and networking assets position it uniquely in the AI space. On December 6, Wells Fargo analyst Aaron Rakers maintained a “Hold” rating on the stock and a $170.00 price target.

Rakers rating stems from various factors, but mainly considers Broadcom’s AI revenue potential and conservative guidance for FY25. The company is expected to report positive F4Q24 results, and investors are keen on its AI silicon expansion and diversification. AI semiconductor revenue is also poised to demonstrate substantial growth, even though there is an air of uncertainty due to investors hoping for even higher figures.

Broadcom’s non-AI semiconductor business is also stabilizing, reducing overall risk. Additionally, the company’s anticipated dividend increase and potential share repurchase authorization indicate strong fundamentals and together, all the factors lead to a balanced outlook for Broadcom. All in all, the Hold rating signifies steady performance without major short-term price changes, urging caution in investment decisions.