Much to the delight of its shareholders, Broadcom continues to capitalize on this opportunity, which is driving its revenue and profits higher despite its position as a larger, slower-growth company. That essential ability has fueled its stock price, which has surged 468% over the past three years (as of this writing) and 109% over the past 12 months. Let the chips fall where they may The semiconductor specialists' blistering run over the past year begs the question: Should you buy now? When it comes to tec ...

Core Viewpoint - Analysts on Wall Street have a strong preference for artificial intelligence (AI) stocks, with Arista Networks being a standout favorite among them [1][2]. Group 1: Analyst Sentiment - Arista Networks has seen increased enthusiasm from analysts, particularly in July, following upgrades in June [4]. - JPMorgan raised its price target for Arista Networks from $117 to $130 on July 17, while Citigroup increased its target from $112 to $123 on July 11 [8]. - Wolfe Research initiated coverage on Arista Networks with an outperform rating on July 7 [8]. Group 2: Market Demand and Projections - The demand for Arista Networks' industry-leading switches is high as data centers enhance their computing infrastructure to support AI [6]. - The company's total addressable market is projected to grow from $41 billion in 2024 to $70 billion in 2028 [6]. - Analysts' price targets are based on expectations of strong cloud spending in the second half of 2025 and a growing Ethernet switching market [5].

Here's what investors should know about these artificial intelligence stocks. Super Micro Computer: 105% upside implied by Loop Capital's target price Super Micro Computer builds data center servers, including liquid-cooled server racks optimized for artificial intelligence (AI). Internal manufacturing capabilities and a modular approach to product development have helped the company secure a leadership position in AI servers, a market forecast to grow at 30% annually through 2033, according to Statista. Su ...

Core Viewpoint - The artificial intelligence (AI) semiconductor sector has faced challenges in 2025, but Broadcom has outperformed expectations, showcasing strong results and potential for growth in AI-related revenue [1][2]. Company Performance - Broadcom's fiscal 2025 first-quarter results exceeded Wall Street's expectations, leading to an 8% increase in stock price the following day [2]. - Despite being down 20% year-to-date, Broadcom's stock is considered attractively valued for potential investors [2]. AI Market Demand - The demand for Broadcom's application-specific integrated circuits (ASICs) has surged due to the increasing need for AI training and inference, offering cost and performance advantages over traditional GPUs [3]. - Broadcom's revenue from AI chips and networking solutions reached $4.1 billion last quarter, marking a 77% increase year-over-year, driven by strong demand from cloud customers [4][5]. Strategic Partnerships - Broadcom is collaborating with three hyperscale cloud customers to develop custom AI processors, with a projected serviceable revenue opportunity of $60 billion to $90 billion over the next three years [7]. - The company has also engaged with two additional hyperscalers to create customized AI accelerators, expanding its customer base and revenue potential [8]. Revenue Growth and Margins - AI-related revenue currently accounts for over 27% of Broadcom's total revenue, with expectations for this figure to rise as the market expands [9]. - The gross margin from Broadcom's semiconductor business increased by 70 basis points year-over-year, indicating improved profitability due to the growing AI segment [10]. Future Outlook - Analysts anticipate accelerated earnings growth for Broadcom, supported by the expanding AI business and its positive impact on margins [11]. - With a current trading multiple of 30 times forward earnings, Broadcom's stock price could potentially reach $274, representing a 48% increase from current levels [12][13].