We just covered Billionaire Ken Fisher’s Latest Portfolio: 10 Best AI Stocks to Buy. Broadcom Inc. (NASDAQ:AVGO) ranks #8 (see the 5 Best AI Stocks to Buy).
Billionaire Ken Fisher’s Stake: $4.79 billion
Companies are racing to sign multi-year AI chip contracts with Broadcom Inc. (NASDAQ:AVGO). Recent deals include hyperscaler commitments from Google, Anthropic, and TikTok/ByteDance. What’s special about Broadcom Inc. (NASDAQ:AVGO) is its ability to deliver custom, workload-specific silicon that general-purpose GPUs cannot match.
Broadcom Inc’s (NASDAQ:AVGO) moat is strong because there are only a few companies capable of delivering high‑performance custom chips tailored for large‑scale AI workloads, and that specialization delivers real economic advantages. While Nvidia’s GPUs dominate general‑purpose AI compute, Broadcom designs application‑specific ASICs and XPUs that hyperscalers prefer for massive inference tasks because they can reduce total cost of ownership by roughly 40–60% compared with GPU clusters, especially in steady, predictable production environments.
According to a Deloitte report, the custom AI chip market is expected to exceed $50 billion in 2026, driven by a shift in workloads from training to inference, which will account for roughly two-thirds of all compute that year. While lighter inference tasks can be handled on PCs and smartphones with onboard accelerators, enterprise and hyperscale workloads still require high-performance, custom-designed chips to efficiently manage post-training and test-time scaling.
Analysts and industry reports also suggest that deploying Broadcom Inc’s (NASDAQ:AVGO) custom silicon at scale can save companies billions in upfront capital expenditures and cut electricity costs by about half, due to the chips’ much lower power draw and higher performance per watt.
Broadcom Inc. (NASDAQ:AVGO) ranks 8th in our list of the best AI stocks to buy according to billionaire Ken Fisher.
Emerald Wealth Partners Focused Equity Strategy in its investor letter mentioned several catalysts for AVGO that compelled it to buy a position in the stock (Click here to read the full text).
While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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