20 Trending AI Stocks on Latest News and Ratings

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3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 130

Broadcom Inc. (NASDAQ:AVGO) is a global technology leader that develops, manufactures, and globally supplies a wide range of semiconductor and infrastructure software products. The company has had a strong FQ3 2024. It reported revenues rising 47% to $13.1 billion, fueled by strong demand for AI semiconductor solutions and VMware.

On October 14, 2024, Mizuho Securities adjusted its outlook for Broadcom Limited (NASDAQ:AVGO). It raised its price target to $220 from the previous $190 while maintaining an Outperform rating. Analysts at Mizuho have revised their price target upwards on the back of the company’s potential revenue from its collaboration with OpenAI on custom AI chips.

Mizuho Securities analyst Vijay Rakesh believes that the company’s current stock price isn’t fully reflective of its AI potential. In particular, Broadcom Inc. (NASDAQ:AVGO)’s silicon business, which includes application-specific integrated circuits (ASICs), enables customers to develop specialized solutions tailored to their needs. The analysis reveals that the partnership could potentially unlock more than $16 billion opportunity for Broadcom Inc. (NASDAQ:AVGO). In addition, the ASIC market is expected to exceed $56 billion in the coming years, which makes it a large opportunity.

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