5 Best Semiconductor Stocks to Buy According to Billionaires

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Billionaire Holders: 41

Broadcom Inc. (NASDAQ:AVGO) is among the Best Semiconductor Stocks.

On June 5, Bloomberg reported that Broadcom Inc. (NASDAQ:AVGO) is shifting away from acquisitions since Chief Executive Officer Hock Tan stated that accelerating artificial intelligence growth is a stronger driver of returns. Tan said at the Bloomberg Tech conference that “artificial intelligence revenue is surging” and that “what can I buy that would come close to that?”

Tan told Bloomberg that acquisitions can distract both the company and its customers. He also commented that demand for AI infrastructure remains “almost insatiable.” He stressed the firm’s focus on supplying networking gear and custom accelerators that power AI systems, projecting that segment could exceed $100 billion in revenue by fiscal 2027.

The pivot marks a break from Broadcom Inc. (NASDAQ:AVGO)’s deal-centric strategy, following acquisitions including VMware, Symantec Enterprise Security, and CA Technologies since 2016.

Bloomberg reported that shares fell on June 4 after the corporation issued a forecast that disappointed Wall Street. Tan called the environment “very surreal” and said that he remains focused on “fundamentals” rather than stock price swings.

Broadcom Inc. (NASDAQ:AVGO) is a multinational technology business that designs, develops, and sells semiconductors and infrastructure software solutions. It works through Semiconductor Solutions and Infrastructure Software divisions.