We recently published 10 Stocks Everyone Is Talking About As AI Investment Continues. One of the stocks that analysts have been talking about recently is Broadcom Inc. (NASDAQ:AVGO).
Stephanie Link, CIO at Hightower, said on a May 12 CNBC show that she’s piling into Broadcom Inc (NASDAQ:AVGO). The analyst at the time said she felt “good” about the company’s business and believed there was opportunity around the stock. At that time, AVGO was trading at around $221, while the stock price as of October 8 was $336.
“Yeah, I’ve been buying it for two months, right? And the stock is still down 14% from its highs,” Link said at the time. “It’s gone from 14 times forward estimates 5 years ago to 36 times. It’s now 30 times. It’s still expensive, but I like what they’ve done in terms of diversifying their revenue mix. AI is 30% of their revenue mix. Software is 40% of their revenue mix. It’s a great combination. And oh, by the way, they just announced a new $10 billion buyback program. It’s not huge, but it’s actually an endorsement that they feel good about their company. with the stock still down 14% from its highs, I still think there’s an opportunity here.
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Columbia Threadneedle’s Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Letter to investors for the second quarter of 2025:
“Stocks of another 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 track for 10 consecutive quarters of AI-related semiconductor growth and expects continued strong demand to persist, driven by the massive AI opportunity. In addition to its dominant market position, the company’s history of high returns on capital for shareholders translates into favorable prospects for a significant investor base.
While we recognize AVGO’s potential as an investment, our belief lies in the belief that certain AI stocks have more promise in terms of higher returns and have limited downside risk. If you’re looking for an extremely cheap AI stock that’s also a top beneficiary of Trump’s tariffs and relocation, check out our free report on the best AI stock in the short term.
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Disclosure: None. This article was originally published on Initiated Monkey.
