The Next Nvidia: Will Sky-High Expectations Impact Broadcom (AVGO) Stock in the Future?

In This Article:

We recently published a list of Wall Street Analysts Can’t Stop Talking About These 10 AI Stocks. In this article, we are going to take a look at where Broadcom Inc (NASDAQ:AVGO) stands against other stocks Wall Street analysts can’t stop talking about.

Henry Ajder, Latent Space Advisory founder, said in a latest program on CNBC that lack of fresh data remains a key challenge for the performance of AI systems after a period of “huge” developments and fast learning.

“I think data is the real problem here. We have a finite amount of data available on the internet and a limited number of sources for live, fresh data. I believe this is becoming an increasingly significant challenge, especially as legal issues surrounding how companies obtain and use data are becoming more prominent,” the analyst said.

Ajder believes there won’t be a complete “halt” to the progress in AI systems but in 2025 we are expected to see a slowdown. Answering a question about the AI’s ability to make up data, called synthetic data” to train itself, the analyst said this domain has shown promise but there are risks of synthetic data potentially corrupting the training models.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 AI stocks currently trending based on latest news. With each stock we have mentioned the number of hedge fund investors. 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).

The Next Nvidia: Will Sky-High Expectations Impact Broadcom (AVGO) Stock in the Future?
The Next Nvidia: Will Sky-High Expectations Impact Broadcom (AVGO) Stock in the Future?

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc (NASDAQ:AVGO)

Number of Hedge Fund Investors: 128

Stacy Rasgon, Bernstein senior analyst, explained in a latest program on CNBC exactly why Broadcom Inc (NASDAQ:AVGO) shares shot up after its latest quarterly results:

“It looks like the performance was driven by AI. They reported $12.2 billion for the year, which translates to roughly $37 billion for the quarter. The guidance was around $35 billion, so the AI performance for the quarter exceeded expectations. Even though the revenue outlook for fiscal Q1 is roughly in line with expectations, investors were worried about things like wireless seasonality into Q1 and some potential lumpiness in AI. We’ll get more details on the segments during the call, but as of right now, the inline revenue seems to be in line with where investors expected it to be going into the quarter, which is likely why the stock is up.”