12 AI Stocks on Latest News and Ratings

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5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 158

On May 28, Redburn-Atlantic began coverage on Broadcom Inc. (NASDAQ:AVGO) with a “Buy” rating and set a price target of $301. Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

Redburn analyst Mike Harrison highlighted Broadcom as a leading ASIC co-partner with a strong customer pipeline. The company boasts a noteworthy presence in AI data centers, with the recent acquisition of VMware seen as a strategic move that strengthens its offerings in cloud and AI-related services. It also boosts its position in the private cloud market, particularly for Generation AI technologies.

The firm forecasts Broadcom’s revenue to be 6% above consensus estimates, driven by the company’s strong market positioning and anticipated growth in the coming years. The company has demonstrated an impressive 40.3% revenue growth in the past twelve months and impressive gross profit margins of 76.3%.

Overall, the firm views significant upside potential for Broadcom’s stock.

“Broadcom is arguably the pre-eminent ASICs co-partner with a strong pipeline of future customers.”

-Harrison said in the note, directing to its involvement across multiple GenAI silicon programs, including with Meta, Apple, and OpenAI.

“We think that consensus is not giving Broadcom sufficient credit for the strength of its ASICs pipeline,” the analyst added.

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