10 AI Stocks Making Headlines on Wall Street

5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 156

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks Making Headlines on Wall Street. On November 25, Goldman Sachs reiterated the stock as “Buy” and raised its price target on the stock to $435 per share from $380.

With Broadcom set to post earnings Dec. 1, analyst James Schneider anticipates investor focus to be on FY26 AI revenue guidance, contributions from Google and OpenAI, and gross margins as custom XPU shipments scale.

“We believe expectations are elevated and investors are positioned positively heading into the quarter, given strong peer results (Nvidia), and positive datapoints from Google with its Gemini 3 release.”

Expectations for the quarter are quite high, with updated guidance likely to exceed the previous forecast of 100% yoy AI revenue growth.

“We expect sustained AI strength in 4Q, with 1Q guidance above the Street given robust spending at key customers — and we expect updated FY26 AI revenue guidance above 100% YoY”

Schneider anticipates AI revenue for fiscal year 2026 to come at $45.4 billion, an estimated year-over-year rise of 128%. This could reach $77.3 billion in 2027, increasing 70% year over year.

With Broadcom helping Google parent design its in-house specialized AI chips, investors are also going to be looking at Google and OpenAI contributions next year, in addition to Broadcom’s margin progression in 2026.

“We believe expectations are elevated heading into the quarter, and investors are positioned positively given strong peer results and positive datapoints related to key XPU customers, mostly notably Google following its latest Gemini 3 launch.

Given gross margin dilution from the custom XPU business, we expect focus on Broadcom’s margin progression in FY2026 as XPU revenue ramps (up over +160% YoY per our estimates).”

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.