35 Chip Stocks Powering AI Boom

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 130 

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. Even as chip markets remain volatile, Broadcom seems well-positioned to deliver solid returns in the space over the next few years. This is because the firm has robust growth through custom AI chips, and the increasing networking demand also supports top line expansion. In addition, the company also has a high-margin subscriptions and services segment and strong enterprise backlog, further bolstering long-term prospects. Analysts expect another dividend raise likely by the end of 2024. The chipmaker has rich free cash flow and a historical commitment to shareholder returns that is rare in the semi space.

Broadcom Inc. (NASDAQ:AVGO) remains an important chip stock on Wall Street. Benchmark has a Buy rating on the stock with a price target of $210. In a recent investor note, the advisory claimed that the earnings report of the chipmaker was being looked to as some sort of savior of the AI momentum trade following a week of incredibly poor performance in most AI related names. Analysts at the advisory, however, highlighted that Broadcom delivered a solid report without any material soft points even though the AI business lacked the clear upside momentum the Street was looking for.