10 Buzzing AI Stocks on Latest News and Ratings

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 158

On June 4th, Seaport reiterated Broadcom Inc. (NASDAQ:AVGO) as “Buy,” stating that it is bullish on the company’s new Tomahawk chip. The firm also said that it is sticking with the stock heading into earnings on Thursday.

In a Monday report, Reuters unveiled that Broadcom has begun shipping the Tomahawk chip, which is its latest networking chip that aims to speed AI.

The chip promises double the performance compared with the prior version and other traffic control features, making it significantly more efficient. According to Ram Velaga, a Broadcom senior vice president, the chip can be used to construct the larger data centers that are necessary for AI. These can be over 100,000 graphics processors (GPUs) strung together.

“Broadcom launched its flagship networking chip, Tomahawk 6. Broadcom has a very strong track record in networking. The new chip firmly positions the company as the leading contender against Nvidia for the AI compute market.”

-Seaport analysts.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $252 implies a 3% upside, however, the Street-high target of $301 implies an upside of 15%.

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