8 Hot Growth Stocks To Buy According to Hedge Funds

3. Broadcom Inc. (NASDAQ:AVGO)  

Year-To-Date Gain as of November 6: 55.63%

Number of Hedge Fund Holders: 130

Broadcom Inc. (NASDAQ:AVGO) is a global leader in technology, specializing in semiconductor design and enterprise software. The company’s product lineup includes cable modems, networking processors, and storage adapters, catering to diverse markets such as data centers, networking, software, broadband, storage, and wireless.

BofA Securities reaffirmed its Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $215, following a meeting at Broadcom’s headquarters attended by CEO Hock Tan, CFO Kirsten Spears, and IR head Ji Yoo, which saw strong investor interest. The discussion focused on Broadcom’s growing presence in the artificial intelligence market. The company expects AI-related sales to contribute roughly $12 billion, or 24% of its total revenue, in fiscal year 2024. This growth comes from a total addressable market (TAM) projected between $100 billion and $125 billion, driven by increasing AI workload demands.

In the third quarter, Broadcom Inc. (NASDAQ:AVGO) reported $13.1 billion in revenue, reflecting a 47% increase year-over-year. This growth was fueled by robust AI-related revenue, strong VMware bookings, and stable non-AI semiconductor sales. For Q4 2024, Broadcom anticipates a 10% sequential increase in AI revenue to $3.5 billion, bringing the full-year total to $12 billion, primarily driven by ethernet networking and custom AI accelerators for data centers.