Top 10 Semiconductor Stocks to Buy Now

3. Broadcom Inc. (NASDAQ:AVGO)

No. Of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductors and infrastructure software for diverse applications, including networking, connectivity, and industrial use. The company’s earnings from Q1 2025 revealed revenue of $14.92 billion, and operating income of $9.8 billion.

Broadcom Inc. (NASDAQ:AVGO) growth is fuelled by AI chip demand, particularly from hyperscalers, with strong prospects in Application-Specific Integrated Circuits (ASICs) and networking. DeepSeek’s emergence could further boost demand for ASIC. The recent sell-off presents a potential buying opportunity.

Broadcom Inc.’s (NASDAQ:AVGO) ASICs are used in multiple AI applications, including machine learning, deep learning, and natural language processing. As AI adoption continues to grow, the company is expected to see strong demand for its ASICs. Analyst optimism arises from the fact that Broadcom’s AI prospects are mostly linked to the ASICs end market, not to mention networking and Ethernet connectivity. ETF provider VanEck states that the semiconductor market is positioned to have another transformative year in 2025, with Broadcom Inc. (NASDAQ:AVGO) positioned well to thrive and capitalize on AI-driven innovations, with an upside of 8.07%.