10 Trending AI Stocks on Wall Street

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 158

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Trending AI Stocks on Wall Street. On July 10, Goldman Sachs analyst James Schneider initiates coverage on the stock with a “Buy” rating and a price target of $315.00.

The firm initiated the U.S. digital semiconductor and electronic design automation software group.

“We believe the AI investment cycle is in a state of transition, with over $350bn in CapEx spent on AI infrastructure. Although monetization has been elusive, we see early signs of incremental revenue and much clearer evidence of cost takeout to justify these investments — and we believe AI CapEx can sustain growth from current levels.”

This is what the firm said particularly for Broadcom:

“Broadcom has a dominant franchise position across several segments of infrastructure software as a result of a long-term M&A strategy. We believe the company is likely to sustain its dominant position in enterprise networking silicon, and will continue to leverage this leadership to drive majority share in custom silicon processors for major US hyperscalers – which should drive AI to comprise over 40% of the company by 2026. At the same time, Broadcom continues to generate steady, growing profitability in its core infrastructure software business. We see the stock’s premium valuation as justified by the greater visibility provided by its sole-sourced position at key silicon accounts and the mission-critical nature of its software portfolio.”

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