Cathie Wood Remains Bullish on Broadcom Amid AI and Datacenter Exposure

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Hottest Stocks to Buy in 2026.

On January 23, Cathie Wood made another purchase of Broadcom Inc. (NASDAQ: AVGO) shares, marking her fourth trade in the semiconductor firm this month. Through her Ark Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW), Wood added 49,048 shares of AVGO valued at $15.96 million on January 23.

Earlier, Wood purchased 32,408 shares of Broadcom on January 20, 143,089 shares on January 14, and 31,573 shares on January 8. The veteran investor made these trades as AVGO shares dipped in January. Year-to-date, Broadcom shares have declined nearly 4.91%. ARKK and ARKW combined hold a stake valued at $82.60 million. AVGO was the most targeted stock in January on Wood’s radar, showing her conviction in the company’s AI and datacenter exposure as a long-term winner.

In other news, on January 30, TheFly reported that Wolfe Research upgraded Broadcom Inc. (NASDAQ:AVGO) from Peer Perform to Outperform. Chris Caso at Wolfe Research has a $400 price target on AVGO.

Caso believes that Broadcom will ship 7nm tensor processing units by 2028, with high demand and other projects creating optionality. The analyst is bullish on AVGO, expecting the company to double its AI revenue in 2027, generating $18 in EPS. “We can no longer ignore Broadcom’s growth and competitiveness in tensor processing units,” Caso added.

Broadcom Inc. (NASDAQ:AVGO) develops and sells various semiconductor devices and infrastructure software solutions worldwide. The company operates through two segments: Semiconductor Solutions and Infrastructure Software.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

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