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Broadcom Inc. (AVGO) Poised for Growth with AI Chips and VMware Acquisition

We recently compiled a list of the 10 High-Flying AI Stocks on News and Ratings. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other AI stocks.

Goldman Sachs raised its target price for Chinese stocks today. They estimate that AI adoption could significantly boost earnings growth and possibly bring in $200 billion of inflows. DeepSeek’s AI breakthrough has led these tech stocks on a strong rally, reigniting investor interest and optimism in Chinese technologies and capabilities. The firm raised its 12-month target price for China’s CSI300 to 4,700 from 4,600. It also raised its price target for MSCI China to 85 from 75.

READ ALSO: 10 AI Stocks Analysts Are Watching: Latest Ratings and News and Top 14 AI Stocks on Wall Street: News and Analyst Ratings

The Chinese startup may be all the rage for Chinese stocks, but some countries are exercising caution all the same. In the latest news, South Korea’s data protection authority has suspended new downloads of the Chinese AI app from DeepSeek. This is after DeepSeek acknowledged failing to take into account some of the agency’s rules on protecting personal data. The Personal Information Protection Commission (PIPC) has notified that the app service will be resumed once improvements are made according to the country’s privacy law. Even though DeepSeek’s web service remains accessible in the country, new downloads of the app are restricted.

Previously, the US Navy also instructed its members to avoid using artificial intelligence technology from China’s DeepSeek. According to the Navy, DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage”. In a similar move, Italy’s data protection authority, the Garante, has also ordered DeepSeek to block its chatbot in the country. This is because it failed to address the regulator’s concerns over its privacy policy.

Notably, BBC reported that the the first member of a Western government to raise privacy concerns about DeepSeek has been Australia’s science minister, Ed Husic. Husic has raised “data and privacy management” concerns over DeepSeek.

“I would be very careful about that, these type of issues need to be weighed up carefully”.

DeepSeek has failed to respond to requests for comment on these issues.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On February 17, Analyst Fang Boon Foo of DBS maintained a “Buy” rating on the stock and retained the price target of $250.00. Broadcom’s strategic acquisitions and strong financial performance have led to Boon Foo’s optimism. In particular, the analyst highlighted the recent acquisition of VMware which has boosted Broadcom Inc. (NASDAQ:AVGO)’s position in the infrastructure software market.

Being a key player in the custom AI chip market, it is well-positioned to benefit from the AI boom with substantial revenue growth anticipated. The company also has a solid growth trajectory driven by its impressive 10-year compound annual growth rate in revenue and EBITDA and its strategic shift towards software. Finally, the firm anticipates strong business momentum due to the company’s AI-chip demand and the VMware acquisition.

Overall AVGO ranks 3rd on our list of the high-flying AI stocks on news and ratings. 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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