12 Best 5G Stocks to Invest in According to Hedge Funds

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 183

Broadcom Inc. (NASDAQ:AVGO) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Wells Fargo increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $410 to $430 and upgraded its rating from Equal-Weight to Overweight.

Wells Fargo noted that the recent weakness in the share price has created a better entry point for investors. The firm also pointed to growing confidence in new growth drivers that could support Broadcom Inc. (NASDAQ:AVGO) through 2026. Wells Fargo raised its estimates for the company for calendar years 2026 and 2027 based on stronger expectations for the AI semiconductor revenue.

Earlier, on January 9, Bernstein reaffirmed its Outperform rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $475 after meeting with the company’s leadership. The discussion focused on investor concerns about growing competition in the AI space.

Following the meeting, Bernstein had “more conviction than ever” that the worries about competition are “hugely overblown” and that Broadcom Inc. (NASDAQ:AVGO) is not expected to lose its leadership position in the ASIC (Application-Specific Integrated Circuit) space anytime soon.

Bernstein also pointed to the company’s innovations in areas such as 3D chip stacking, 400G SerDes, investments in substrate manufacturing, and new manufacturing techniques that could eliminate the need for interposers. The firm sees these as advantages that “no competitors or customers can match.”

Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions. The company’s solutions include critical components for 5G infrastructure.

While we acknowledge the potential of AVGO as an investment, 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 a 100x upside potential, check out our report about this cheapest AI stock.

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