We recently published a list of 10 Tech News Updates Investors Should Not Miss. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other tech news updates investors should not miss.
On March 6th, CoreWeave, an Nvidia-backed cloud-computing startup, denied claims in a Financial Times report that Microsoft had pulled the plug in some of the agreements it had signed with the cloud provider due to service delivery challenges and missed deadlines.
“We pride ourselves in our client partnerships and there have been no contract cancellations or walking away from commitments. Any claim to the contrary is false and misleading,” a CoreWeave spokesperson told Reuters in an emailed statement.
The news follows after Stack Capital Group made an investment of $10 million in the AI-infrastructure company, according to a company release on March 5th.
“Given its growing data center presence across the United States, Europe, and Canada, CoreWeave is extremely well-positioned to continue capitalizing on accelerating global demand for AI infrastructure and compute capabilities,” said Jeff Parks, CEO of Stack Capital.
According to a Reuters report on March 7th, the Azure parent has begun testing out models from xAI, Meta and DeepSeek to develop AI models to compete with OpenAI.
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, as of Q4 2024.
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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, develops, builds and supplies semiconductor and infrastructure software products. On March 7th, CFRA maintained a buy rating on the company as it maintains its long-term outlook on its relationship with three major hyperscalers. The company is also engaged with four customers that develop custom silicon chips, thus suggesting additional growth opportunities.
Shares of Broadcom surged after the company published its second quarter results on March 6, which exceeded Wall Street’s estimations. Wall Street had projected EPS of $1.51 with a revenue of $14.6 billion, and Broadcom logged an EPS of $1.60 on revenue of $14.92 billion. CEO Hock Tan said that the company is expecting “continued strength in AI semiconductor revenue,” which is projected to reach $4.4 billion in the second quarter. Robust AI sales also prompted KeyBanc Capital Markets to raise the company’s price target from $260 to $275 and maintain its Overweight rating, on March 7.
Overall, AVGO ranks 1st on our list of tech news updates investors should not miss. 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.
