Analyst Recommends Broadcom (AVGO) Amid Sora AI, $2 Trillion Market

We recently published 10 Buzzing News to Watch as Investors Look for Best AI Stocks Amid Fed Rate Cuts. Broadcom Inc (NASDAQ:AVGO) is one of the best AI stocks amid Fed rate cuts.

Ben Reitzes, Melius Research’s head of technology research, said in a recent program on CNBC that Broadcom Inc (NASDAQ:AVGO) is one of the stocks he’s recommending. He  believes investors should “sit tight” and invest in major semiconductor stocks amid rising demand. He talked about the total addressable market for these companies and the demand boost due to AI video apps.

“Go play with Sora AI, a new social media app for generating video, and then you know how much inferencing there needs to be. That app is incredible. OpenAI is going to need a lot of compute, but it’s all about OpenAI and NVIDIA. In semis, we’re kind of recommending the elite three now, which are Nvidia, Broadcom, and AMD. We think the TAM for compute and networking is $2 trillion by the end of this decade, and maybe even higher. All this inferencing, and then autonomous vehicles and robots, are really going to continue to build out the infrastructure. Sit tight.”

Sora is a text-to-video model developed by OpenAI.

ClearBridge Dividend Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:

“During the quarter, we benefited from our positions in Broadcom Inc. (NASDAQ:AVGO) and Oracle, both of which are major players in AI. Our experiences with these two names are emblematic of our broader approach to investing. Each was bought on its own merits, based on a positive assessment of its fundamental outlook married with a constructive underwriting of its risk/reward. We purchased them in 2020, well before AI became an investable theme. Over the years, both companies have executed well in their traditional categories and taken advantage of opportunities in AI as they have unfolded. We could not have predicted the phenomenal courses either has charted in navigating the AI wave, but by investing in great companies with talented management teams, we have profited handsomely. Both stocks surged in September on robust earnings and outlooks.”

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Disclosure: None. This article is originally published at Insider Monkey.