33 Most Important AI Companies You Should Pay Attention To

15. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 115

YTD Return as of August 1: 57% 

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The firm has become famous in the AI space over the past few years as it leads the industry in developing application-specific integrated chip (ASIC), a specialized 5 nanometer chip that is designed to run AI tasks. Chinese internet-tech firm ByteDance recently announced that it would be partnering with Broadcom for the production of these chips, with the designs of the latter helping the former with manufacturing outside the US. Tech giants like Amazon, Alphabet, and Meta, all customers of Broadcom, are set to increase their spending on these chips for the development of their AI data centers in the coming months.

Hock E Tan, the CEO of Broadcom Inc. (NASDAQ:AVGO), said during the second quarter earnings call that despite continued cyclical weakness in semiconductor revenue from enterprises and telcos, the firm managed to grow organic revenue, excluding that from recently purchased cloud firm VMware, by 12% year-on-year. The growth was attributed to AI spending, with the firm posting over $3 billion in AI revenue, a 280% year on year increase compared to the same period in the previous year.