Stacy Rasgon Says AI Trade Slowdown Not Expected Until At Least 2027, Continues to Like Broadcom (AVGO)

Core Insights - Broadcom Inc. (NASDAQ:AVGO) is highlighted as a trending stock in Q4, with strong support from analysts regarding its potential in the AI sector [1] - The AI rally is expected to persist, with no anticipated downturn until at least 2027, indicating a favorable outlook for high-quality semiconductor stocks like Broadcom [1][2] - Analysts emphasize the importance of focusing on high-quality AI companies, suggesting that investments in firms like Broadcom and Nvidia have been successful [2] Group 1: Analyst Perspectives - Stacy Rasgon, a senior analyst, believes the AI cycle is still in its early stages and has significant growth potential, with new deals extending the cycle further [2] - Concerns about market downturns or "air pockets" are not expected in the near future, as major projects related to AI will not begin shipping until late next year [2] - The Polen Focus Growth Strategy has recently initiated positions in Broadcom after a long absence, indicating renewed confidence in the company's prospects despite previous cyclical challenges [3][4] Group 2: Investment Strategy - The investment strategy emphasizes owning high-quality AI names while ignoring less promising stocks, which has proven effective [2] - The cyclical nature of Broadcom's business model has historically made earnings growth difficult to predict, but the current AI landscape presents new opportunities [4] - The focus on durable and persistent earnings growth aligns with the recent positive sentiment towards Broadcom and similar companies in the AI sector [4]