10 AI Stocks to Watch Out For in 2025

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 156

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks to Watch Out For in 2025. On September 2, Morgan Stanley raised the firm’s price target on the stock to $357 from $338 and kept an Overweight rating on the shares.

The firm said that its latest ASIC checks are positive and that it has a bullish ethernet networking outlook. Moreover, it also sees continued strength in hyperscaler capex and inference demand.

The firm is raising estimates ahead of earnings due to the “strong prospects” for both ASICs and networking in AI along with a “modest recovery” in Broadcom’s core business.

“Outside of AI, we expect a cyclical recovery in semis and stable software.”

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