5 Best Data Center Stocks to Buy in July

2. Broadcom Inc. (NASDAQ:AVGO)

Market Capitalization: $1.76 trillion

Number of Hedge Fund Holders: 173

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Data Center Stocks to Buy in July. On July 8, Apple announced a multi-year chip deal with Broadcom expected to exceed $30 billion, the largest U.S. manufacturing commitment to date, CNBC reported.

The agreement covers the production of more than 15 billion U.S.-made chips as well as a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado.

Reuters reported on July 6 that Broadcom will expand its partnership with Apple through 2031 for the development and supply of custom chips.

In other news, TipRanks reported on July 7 that Erste Group analyst Hans Engel downgraded its rating on Broadcom to Hold from Buy, highlighting valuation concerns.

Based on 54 analyst ratings compiled by CNN, 93% marked Broadcom Buy while 7% assigned a Hold rating. The stock has an average price target of $525, a 41.59% upside from the current price of $370.78.

Broadcom Inc. (NASDAQ:AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs.