6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
With strong hedge fund and Wall Street support, Broadcom Inc. (NASDAQ:AVGO) ranks among the best AI infrastructure stocks and has 8.6% upside potential.
Broadcom Inc. (NASDAQ:AVGO) heads into its quarterly report with analysts expecting the company’s AI-driven growth to remain firmly intact.
On June 1, 2026, Morgan Stanley analyst Joseph Moore raised the firm’s price target on the stock to $485 from $470 and maintained an “Overweight” rating ahead of results scheduled after the market close on June 3, 2026. The firm expects Broadcom Inc. (NASDAQ:AVGO) to meet elevated investor expectations, supported by a strong ramp in both networking and application-specific integrated circuits (ASICs). Moore also said Broadcom is likely to retain a strong majority of the Tensor Processing Unit (TPU) business.
That view follows a strong fiscal first-quarter report released on March 4, 2026.
Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $19.3 billion, up 29% year-over-year, while AI semiconductor revenue climbed 106% to $8.4 billion, driven by demand for custom AI accelerators and AI networking. Adjusted EBITDA reached a record $13.1 billion, representing 68% of revenue.
Management guided for fiscal second-quarter revenue of approximately $22.0 billion, implying 47% year-over-year growth, with adjusted EBITDA expected to remain around 68% of revenue. Semiconductor revenue is projected to reach $14.8 billion, including AI semiconductor revenue of roughly $10.7 billion, up about 140% from a year earlier. Infrastructure software revenue is expected to reach approximately $7.2 billion.
Broadcom Inc. (NASDAQ:AVGO)’s management also said it has secured key component capacity through 2028 and stated it has a line of sight to AI chip revenue exceeding $100 billion in 2027, reflecting the scale of demand from hyperscale customers and custom AI silicon programs.
Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.
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