Nvidia dominated the AI investing scene for over a year. Broadcom's future growth is projected to be higher than Nvidia's.
Broadcom Inc. (AVGO) closed at $149.26 in the latest trading session, marking a -1.37% move from the prior day.
Since closing at a record high less than 10 days ago, the benchmark S&P 500 index has been on the back foot. For the moment, it's not looking like a whole lot more than a healthy mid-rally correction.
The Magnificent Seven stocks have carried major indices to all-time highs. Some of these stocks were also in the FAANG acronym, but regardless of how you group them, mega-cap big tech companies continue to lead the market.
Big tech earnings may have disappointed some, despite still being pretty good. Commentary on AI spending remains positive, but investors may fear the good times won't last.
Broadcom (NASDAQ: AVGO ) is well-known as a leader in 5G semiconductors, but it's also a chip stock that lags behind many of the top names in this sector — most notably Nvidia (NASDAQ: NVDA ). The company powers the sort of data throughput and connectivity we all rely on with its advanced chips and RF solutions.
Investors should define their goals before entering the market. For low-risk inflation-beating investments, focus on undervalued blue chips.
Many corporations are pouring their cash into artificial intelligence (AI). This technology allows companies to scale their services and offer more resources for their customers.
Stock splits have quickly become the newest hot trend on Wall Street. Roughly a dozen top-performing companies have announced a stock split since 2024 began.
Given Broadcom's (NASDAQ: AVGO ) high exposure to the artificial intelligence megatrend, its impressive list of partners and customers and the reasonable valuation of Broadcom stock, I view the shares as a buy for investors looking for increased exposure to large AI chip makers. Also working in Broadcom's favor are the strongly positive sentiment towards the name on the Street and the very impressive quarterly results that the chip maker reported in June.
Broadcom is one of many semiconductor stocks enjoying outsize buying activity thanks to bullish sentiment surrounding artificial intelligence (AI). The company recently completed a 10-for-1 stock split.
Zacks.com users have recently been watching Broadcom Inc. (AVGO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.