Why Analysts are Bullish Despite Rumors of Intel Takeover Talks?

We recently published a list of 20 AI News and Analyst Ratings You Should Not Miss. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other AI news and analyst ratings that you should not miss.

The artificial intelligence (AI) market continues to show tremendous growth, with significant advances across sectors. According to a report by McKinsey on the AI industry, the AI revolution is driving innovation across industries, with investment in AI increasing sevenfold in recent years despite economic downturns in other tech sectors. This surge is primarily fueled by the growing demand for AI applications in data analysis, content generation, and predictive modeling. In particular, generative AI has drawn the most attention, revolutionizing industries like marketing, customer service, and product design​. Moreover, high-performing companies are heavily investing in AI to gain a competitive edge. These firms, often referred to as AI high performers, allocate a significant portion of their digital budgets – over 20% – to AI technologies. They prioritize AI not only for cost reductions but also for new revenue streams.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

The market for AI applications is set to expand even further, with several industry reports predicting that by 2030, AI could contribute up to $13 trillion to the global economy. Over a course of the next decade, informed estimates by investment advisors at Goldman Sachs indicate that these AI tools could drive a 7% increase in global GDP, worth nearly $7 trillion, and lift productivity growth by 1.5 percentage points overall. Moreover, the bank expects established businesses around the world to spend nearly $1 trillion on developing AI infrastructure in the coming years

Prominent businesses have taken note of these developments. Latest reports suggest that investment titan BlackRock, in partnership with tech giants is likely to launch a more than $30 billion fund focused on AI. The fund will invest in artificial intelligence infrastructure to build data centers and energy projects. The need for energy is a source of particular interest to the business community as AI models require substantial computational power, leading to higher energy consumption.

The sheer scale of computational power required for AI workloads has also forced tech giants to build supercomputer clusters, stringing together expensive chips, cooling systems, networking tools, and other high-tech gear to crunch data. These AI data centers will likely consume a growing amount of energy as the use cases of AI expand. McKinsey estimates that by 2025, 15% to 20% of all data center workloads will be AI-driven, compared to less than 5% in 2020. Furthermore, according to a report from the International Energy Agency, AI data centers could account for as much as 13% of global electricity demand by 2030 if current growth trends continue. Tech giants are thus investing billions of dollars into expanding their AI infrastructure.

Our Methodology

For this article, we selected AI stocks based on the latest news and analyst ratings. These stocks are also popular among hedge funds.

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: 130

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. Latest reports suggest that the company is not considering a potential takeover bid for rival Intel. News publication Bloomberg, citing people familiar with the matter, reports that Broadcom was assessing an offer for Intel but has put the brakes on the project, for now. Intel is pitching large parts of the business, including foundry, to potential buyers as it seeks to raise cash for a total overhaul. Several chip firms, including Qualcomm, are reportedly interested in buying parts of the Intel business. Such a takeover would invite scrutiny from regulators, evidenced by the fact that authorities shut down a potential merger between Broadcom and Qualcomm in 2018.

William Blair analyst Sebastien Naji recently initiated coverage of Broadcom Inc. (NASDAQ:AVGO) stock with an Outperform rating. In an investor note, the advisory underlined that Broadcom was targeting $12 billion in AI revenue in FY24 and there was room for continued steady growth into FY25 and FY26 driven by increasing custom chip demand, improved software monetization, recovery in non-AI semi chips and accelerating growth of Ethernet AI network fabrics.

Overall AVGO ranks 8th on our list of AI news and analyst ratings that you should not miss. 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 timeframe. 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: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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

Source link

Visited 1 times, 1 visit(s) today

Related Article

vivo X Fold5 release timeframe revealed, to support 80W charging

Vivo officially confirmed the vivo X Fold5‘s Chinese launch date for June 25, but the global version’s debut remains unknown. According to 91mobile sources, the company plans to release the device in the second week of July. This appears to be in line with last year’s X Fold3 series release, but there’s no mention of

JURA Launches the Z10 in Aluminum Black

MONTVALE, N.J., June 20, 2025 /PRNewswire/ — JURA, the global innovation leader in automatic coffee machines, introduces a new color option for its best-selling Z10: Aluminum Black. The Z10 is now equipped with the user-favorite Sweet Foam Function and can now prepare up to 40 hot and cold brew specialties with the added indulgence of

vivo Y400 Pro arrives with a 120Hz curved screen and 4K-enabled front camera

The vivo Y400 Pro, which we’ve been hearing about for the past couple of weeks, has been officially unveiled. vivo says it’s “designed to meet the evolving demands of style-conscious, performance-driven consumers” and those “chasing bigger dreams.” The vivo Y400 Pro is built around a 6.77″ FullHD+ 3D curved AMOLED display with a 120Hz refresh

Redmi K80 Ultra reviewed and disassembled ahead of launch

Redmi K80 Ultra is a highly anticipated flagship killer set to launch in China soon. While the device is yet to be formally announced, tech bloggers across China already have the device in hand, and some have posted their initial impressions and even full teardowns of the device. Redmi K80 Ultra

Nothing Headphone (1) leaks in set of live images

The Nothing Ear (1) was the brand’s first ever product, and Nothing is going back to its roots with its first attempt at over-the-ear headphones. The aptly named Headphone (1) are launching alongside the Phone (3) on July 1 and we now have our first live look thanks to a series of live images.

Tecno Pova Curve hands-on review

Introduction The Pova Curve is yet another value-oriented option from Tecno. It aims to bring a stylish design along with features like a 144Hz AMOLED display and the usual assortment of AI features to the masses. The Tecno Pova Curve shares the basic design and software with the Infinix Zero 40 that we looked at

Samsung Galaxy S25 FE’s design revealed through CAD-based renders

Samsung is expected to unveil the Galaxy Z Fold7 and Galaxy Z Flip7 next month, and their renders that leaked yesterday showed us the phones in different colors. However, Samsung’s next high-end smartphone after these foldables won’t come in 2026 but before the end of 2025. We are talking about the Samsung Galaxy S25 FE,

Samsung Galaxy M36 now has an official launch date

Samsung started teasing the upcoming Galaxy M36 in India a couple of days ago, and today it’s finally announced when the phone is getting official: on June 27 at 12 noon local time. It will be offered through Amazon in Orange Haze, Velvet Black, and Serene Green. The screen will come with Gorilla Glass Victus+

We unbox the Black Poco F7

We brought you an exclusive first look at the special edition Silver Poco F7 a few days ago. Since then, we’ve received both the White and the Black model, so we thought we’d give you another unboxing. The contents of the global unit’s retail box remain the same – you get a dark grey case,

OnePlus launches Bullets Wireless Z3 wireless neckband in India

OnePlus has announced its newest audio product, the Bullets Wireless Z3. These are being launched in the Indian market and are priced at just INR 1,699, which is approximately $20. They will be available for purchase starting June 24, 2025, at 12 PM on OnePlus.in, Amazon.in, Flipkart, Myntra, OnePlus Experience Stores, as well as Croma,

Samsung Galaxy A07, F07, and M07 are on the way

Samsung is working on a trio of new entry-level smartphones, the Galaxy A07, F07, and M07. For reference, note that the A06 arrived in August of last year and the A06 5G in February, alongside the F06 5G and the M06 5G. So we may be a ways off from the launch of the A07,

These are the best audio apps for Android (that aren’t Spotify)

One of the most important tasks of any phone, especially an Android phone, is to give you something to listen to. So if you’re searching for the best audio app you can download onto your Android, I’ve got some suggestions. What follows is a selection of seven useful apps for audio fans. These aren’t just

SCA’s World of Coffee Trade Show Heading to Brussels in 2026

Daily Coffee News Staff | June 19, 2025 SCA press image.   The Specialty Coffee Association just announced that its flagship European trade show will be taking place in Brussels, Belgium, in 2026.  World of Coffee Brussels is expected to draw thousands of coffee professionals to the Brussels Expo center June 25-27, 2026. The announcement

OnePlus rumored to be working on new gaming series

OnePlus is apparently working on an entirely new line of products, which will be very gamer-oriented. The smartphones in this line will have bigger batteries than the other OnePlus devices, flagship chipsets, and dedicated gaming triggers. The bad news is that initially this new series will only be available in China. But of course, if

The golden Trump Phone is almost certainly not made in the US

Not content with a real estate empire and the presidency of the United States, the Trump family is wading into the phone wars like it’s 2011 with a shiny gold monstrosity called the T1, the marketing of which leans extensively on the narrowest idea of patriotism. Beyond the immediate question — why do this, like,

Leaked images show off Samsung Galaxy Z Flip7 colors, storage info also leaks

Leaked info shows that the Samsung Galaxy Z Flip7 will be widely available in three colors: Jet Black, Blue Shadow and Coral Red. Traditionally, there are a few additional colors that are available exclusively through Samsung.com (those have not leaked yet). The first leaked official images of the phone offer a better look at what

0
Would love your thoughts, please comment.x
()
x