We recently published a list of 9 AI News and Ratings on Investors’ Radar. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other AI news and ratings on investors’ radar.
According to a Reuters report posted on March 25, Chinese AI firms have made significant progress in closing the technology gap with the U.S., with some areas now only three months behind, according to 01.AI CEO Lee Kai-fu. He highlighted DeepSeek’s advancements in optimizing chip usage and algorithm efficiency, allowing China to compete more closely in AI development. Despite U.S. semiconductor sanctions, Chinese companies have adapted by improving their algorithms, with DeepSeek even surpassing expectations in certain areas like infrastructure software engineering.
As per the report, Lee emphasized that investing in proprietary models is becoming more challenging due to competition from major tech firms and open-source alternatives, leading 01.AI to focus on AI applications instead. The company recently launched Wanzhi, a platform for enterprise AI deployment, and expects substantial revenue growth in 2025.
China Advances AI Despite US Chip Export Controls
Senior foreign officials and major tech companies are urging the Trump administration to ease AI chip export restrictions. In a discussion on March 25, Bloomberg Intelligence analyst Mandeep Singh explained that initial U.S. controls began in 2022 under the Biden administration, limiting the semiconductor kingpin’s high-end chip shipments to China by restricting interconnect bandwidth. These measures expanded with a 168-page diffusion rule categorizing countries based on access levels. Despite restrictions, Chinese firms like Ant Group continue AI advancements by optimizing available resources, including Huawei and AMD chips, reducing pre-training costs by 20% through heterogeneous computing.
According to Singh, the semiconductor kingpin argues that these restrictions are cutting into its revenue, with its China exposure dropping from 20% to below 10%, while AI firms like OpenAI claim the market remains undersupplied, further driving demand for GPUs. Singh noted that U.S. AI models still outperform Chinese counterparts in reasoning and multimodal tasks, giving them a competitive edge. Furthermore, investors remain confident in the Mag 7 stocks, viewing market dips as buying opportunities. However, concerns are rising about data center expansion and energy supply challenges, especially in regions beyond traditional hubs like Virginia.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductor and infrastructure software solutions for networking, telecommunications, and consumer electronics.
On March 25, Broadcom announced that it has expanded its 200G/lane DSP PHY portfolio with the introduction of Sian3 and Sian2M, designed to improve AI/ML cluster connectivity. These DSPs optimize power usage in both single-mode and short-reach multi-mode fiber links for 800G and 1.6T optical transceivers.
Sian3 is a 3nm 200G/lane PAM4 DSP and it improves energy efficiency for 800G and 1.6T transceivers using single-mode fiber, reducing power consumption by over 20% compared to its predecessor. On the other hand, Sian2M is tailored for short-reach multi-mode fiber links, integrating VCSEL drivers and using Broadcom’s 200G VCSEL technology to boost efficiency.
With AI workloads driving demand for higher bandwidth, these advancements support scalable, low-power optical connectivity. Broadcom is providing early access to customers, with Sian3 set for production in Q3 2025.
Overall, AVGO ranks 1st on our list of AI news and ratings on investors’ radar. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
