Top 10 AI Stocks on Latest Analyst Ratings and News

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1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On January 13, Jefferies named Broadcom as a top pick, saying that the semis company is a top idea in 2025. The firm raised its price target on the stock to $300 from $225 based on its strong and growing customer base. Broadcom has a rapidly growing AI chip market, driven by demand for custom-designed chips, or ASICs. Its advanced chips are anticipated to rival Nvidia’s in compute density as new technologies like 3.5D packaging and silicon photonics gain traction. The firm further revealed that Broadcom’s AI chip sales could generate over $60 billion in revenue by 2027. This could drive earnings per share to $12 or more. Its AI business has also gained momentum, specifically in training-focused chips, which need higher prices as designs become more complex. As these chips become larger and incorporate more advanced technologies, it will drive the average selling prices higher.

“AVGO Top Pick but Plenty of Growth to Go Around.”

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 timeframe. 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 Stock To Buy Now  and 30 Most Important AI Stocks According to BlackRock.

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