10 Best Semiconductor Stocks to Buy According to Reddit

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3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 158

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Mizuho analyst Vijay Rakesh raised the price target on the company’s stock to $315 from $310, while keeping an “Outperform” rating. The firm increased estimates and price targets for several names in the broader semiconductors and semiconductor capital equipment group. The firm took a look at the data center and AI server market after the re-rating post the Liberation Day selloff. Overall, the firm expects Broadcom Inc. (NASDAQ:AVGO) to achieve industry-leading FY 2026 gross margins and operating margins, with potential FCF growth.

In Q2 2025, Broadcom Inc. (NASDAQ:AVGO) achieved record revenue due to continued momentum in AI semiconductor solutions and VMware. Its Q2 2025 AI revenue saw an increase of 46% YoY to more than $4.4 billion, thanks to the strong demand for AI networking. Broadcom Inc. (NASDAQ:AVGO) expects growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3 2025, delivering 10 consecutive quarters of growth, with the company’s hyperscale partners continuing to invest. In Q2 2025, the company saw a record FCF of $6.4 billion, up 44% YoY.

ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Adding Broadcom Inc. (NASDAQ:AVGO), a leader in semiconductor design for communications and networking devices, enables the Strategy to better participate in the development of custom silicon chips for AI computing. Broadcom is well-positioned for continued healthy investment in AI, working with several large technology companies to develop custom silicon that we expect to grow alongside robust demand for Nvidia’s all-purpose GPUs. The company’s cloud infrastructure software business should also continue to grow for the next several years given its entrenched position within enterprises.”

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