Broadcom (NASDAQ:AVGO) is not only the best way to capitalize on the artificial intelligence (AI) revolution, it’s also the best stock investment of all for 2025. At least that’s the opinion of one avid researcher who follows the chipmaker’s stock. Following news that Broadcom was awarded top pick status for 2025, investors pushed the stock’s value up more than 1% on Friday.
Jefferies is the company behind the recommendation; On Friday morning, it named Broadcom its No. 1 stock for the coming year. In addition, it implemented a significant price target increase, from $225 per share to $300 per share.
According to reports, Jefferies believes Broadcom is in a prime position as it is a major developer and manufacturer of advanced custom-designed chips (also known as ASICs). Such products are ideal for the heavy processing demands of AI. Ultimately, the company could rake in more than $60 billion in annual sales of chips that power AI capabilities by 2027.
Jefferies wasn’t the only Broadcom tracker to raise its price target that day. Morgan Stanley Analyst Joseph Moore also made a change, raising his price target from $233 to $265 per share. Moore reiterated his overweight (in other words, buy) on the stock.
The AI ​​market is almost undisputedly Broadcom’s oyster. There is little doubt that the already high demand for the crucial hardware to power the technology will continue to rise, most likely powerfully and sustainably. Broadcom seems like an obvious and very good bet on the AI-driven future of the world.
Consider the following before buying shares in Broadcom:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia created this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $800,876!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.
View the 10 stocks »
*Stock Advisor returns December 16, 2024
Eric Volkman has no positions in the stocks mentioned. The Motley Fool holds and recommends Jefferies Financial Group. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Why Investors Loved Stock-Split Stock Broadcom Today was originally published by The Motley Fool
