We recently published a list of 10 High-Flying AI Stocks to Watch Today. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other high-flying AI stocks to watch today.
The most important conference in the tech world is in full swing, yet investors are skeptical about what’s ahead. According to Jensen Huang, his company is well-positioned to navigate a shift in the artificial intelligence industry, particularly where businesses are moving from training AI models to getting detailed answers from them.
Huang also defended his company’s lead in selling costly AI chips to customers, an aspect that was recently questioned after China’s DeepSeek created a competitive chatbot with relatively fewer chips.
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Despite Huang’s reassuring remarks, the chipmaker’s stock fell more than 3%, reflecting how investors haven’t been entirely assured by Huang’s presentation. Calling the conference the “Superbowl of AI”, Huang commented that “almost the entire world got it wrong,” regarding DeepSeek.
“The amount of computation we need as a result of agentic AI, as a result of reasoning, is easily 100 times more than we thought we needed this time last year.”
-Huang, when referring to autonomous AI agents that require little human intervention for routine tasks.
At the same time, new AI models and tools are being launched in the tech world as businesses and countries compete in an attempt to lead the AI arms race. In the latest news, tech giant Tencent has unveiled a suite of new artificial intelligence tools capable of converting text and images into 3D visuals. The move marks the growing Chinese momentum in the field of generative AI.
Similarly, Baidu has released two new AI models which are freely available to individual users ahead of schedule. ERNIE 4.5 is a native multimodal foundation model, while ERNIE X1 is a reasoning model with deep-learning capabilities. The company aims to increase user involvement across its platforms, attempting to combine these models into its larger ecosystem.
As major players continue to release new models and tools, the race to dominate the AI landscape intensifies even further. It’s worth waiting to see who eventually ends up leading the AI arms race and how these technologies end up making an impact on the business world and society.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in 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) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On March 18, the company announced highlights and new program elements of VMware Explore(R) 2025, an essential cloud event for IT professionals. Kicking off in Las Vegas on August 25, it will move on to select cities in Asia Pacific, Japan, and Europe. The event will feature technical and business-level sessions, panel discussions, technical deep-dive sessions, expert roundtables, instructor-led and self-paced labs, private AI, and more. Attendees will be able to leverage actionable insights on technical topics as well as access to an extensive ecosystem including VMware Cloud Service Providers (VCSPs), hyperscalers, Value-Added OEMs (VAO) partners, and VMware Technology Alliance Partners (TAP).
“We are excited to offer Explore across more countries and communities while also building more engagement and choice with our flagship Las Vegas event. With Explore 2025, we’re delivering more content sessions, a new pricing model and additional locations to better meet the needs of IT practitioners, innovators and leaders. The goal remains to provide our customers with insights, tools and engagement opportunities required to succeed in a continually dynamic IT environment.”
-Joan Stone, vice president of corporate marketing, Broadcom.
Overall, AVGO ranks 6th on our list of high-flying AI stocks to watch today. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.
