This Analyst’s Prediction About Broadcom (AVGO) Was Right

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks analysts were recently talking about.

Stephanie Link, CIO at Hightower, said during a CNBC program on May 12 that she was piling into Broadcom Inc (NASDAQ:AVGO). The analyst at the time said she felt “good” about the company’s business and believed there was an opportunity around the stock. At that time, AVGO was trading at around $221, while the stock price as of Oct. 8 is $336.

“Yeah, I’ve been buying it for the last two months, right? And the stock is still down 14% from its highs,” Link said at the time. “It went from 14 times forward estimates 5 years ago to 36 times. It’s now at 30 times. That’s still expensive, but I like what they’ve done in terms of the diversification to their revenue mix. AI is 30% of their revenue mix. Software is 40% of their revenue mix. That’s a great combination. And oh, by the way, they just announced a $10 billion new buyback program. It’s not huge, but it’s actually an endorsement that they feel good about their business. And with the stock down still 14% from its highs, I still think there’s an opportunity there.”

This Analyst’s Prediction About Broadcom (AVGO) Was Right

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Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Shares of fellow semiconductor giant Broadcom Inc. (NASDAQ:AVGO) also outperformed during the quarter, as customer demand for the company’s custom accelerator chips remained insatiable despite the uncertain economic environment. The company is on pace for 10 consecutive quarters of AI-related semiconductor growth and expects continued strong demand persist, due to the sizable AI opportunity. In addition to its dominant market position, the company’s history of strong capital returns to shareholders results in a favorable outlook for a sizable investor base.”

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 Right Now.

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