Goldman Sachs Tech Stocks: 10 Stocks to Buy

7. Broadcom Inc. (NASDAQ:AVGO)

Number of hedge fund owners – 128

Broadcom Inc. (NASDAQ:AVGO) is a global technology leader specializing in the design, development, and supply of a wide range of semiconductor and infrastructure software solutions. Broadcom serves diverse markets such as data centers, networking, software, broadband, wireless, and industrial sectors.

Broadcom’s market positioning is further strengthened by its involvement in artificial intelligence (AI). The company is projected to enter a customer AI chip market worth $60 billion to $90 billion by fiscal 2027, driven by its application-specific integrated circuits (ASICs) projects with multiple customers.

Broadcom Inc. (NASDAQ:AVGO) remains a dominant force in the semiconductor industry, with strong exposure to artificial intelligence (AI) and infrastructure software. For fiscal Q2 2025, the company expects revenue of approximately $14.9 billion, a 19% year-over-year increase. In its latest quarter, Broadcom’s total revenue surged 43.99% from the prior year and 6.13% sequentially, reflecting robust demand for its AI-driven semiconductor solutions. In the first quarter of fiscal year 2025, the company reported revenue of $14.916 billion, marking a 25% increase from the prior-year period. The company also achieved a GAAP net income of $5.503 billion for the quarter.

On March 7, Broadcom Inc. (NASDAQ:AVGO) stock rallied following better-than-expected earnings, offering some relief to AI-focused investors. However, after peaking at a $1 trillion valuation in December, the stock has faced a 22% decline amid broader market corrections. With a market cap of $911 billion, the stock remains highly valued and could see further volatility if market conditions worsen.

Despite near-term fluctuations, Broadcom Inc. (NASDAQ:AVGO)’s AI revenue continues to soar, reinforcing its long-term growth potential. Over the past five years, the stock has delivered a staggering 1,058.6% return. Analysts remain bullish, with 89% issuing a “Buy” rating and a strong price target outlook.