We recently compiled a list of the Top 10 AI Stocks on Latest Analyst Ratings and News.In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other AI stocks.
As President Joe Biden nears the end of his term, he is issuing a series of executive orders. In the latest, the President has signed an order to provide federal support to address the massive energy needs of fast-growing advanced artificial intelligence data centers.
The order will allow federal land owned by the Defense and Energy departments to host gigawatt-scale AI data centers and new clean power facilities. According to Biden, the order will “accelerate the speed at which we build the next generation of AI infrastructure here in America, in a way that enhances economic competitiveness, national security, AI safety, and clean energy”.
According to the order, companies tapping federal land for AI data centers must also purchase an “appropriate share” of American-made semiconductors. These purchases will be decided on a case-by-case basis.
“It’s really vital that we ensure that the AI industry can build out the infrastructure for training and using powerful AI models here in the United States”.
Several known names, including OpenAI Senior Vice President of Global Affairs Chris Lehane, have commended this effort. Lehane also called out for cultivating a robust domestic infrastructure for the growing U.S. artificial intelligence sector.
“So what you get with the Biden administration today is — at least from a signaling perspective — on federal land, trying to short the timeline between when you can get your project shovels in the ground and then the project going forward”.
According to Lehane, the incoming Trump administration sees AI through two lenses — national security and economic security. He hopes that both sides of the coin will amalgamate into a national strategy.
AI Company OpenAI has also recently laid out its vision for artificial intelligence development in the U.S. According to the company, the US needs investment from abroad and supportive regulation to stay ahead of China in the race for nascent technology. In a 15-page document called the “Economic Blueprint”, it said that “Chips, data, and energy are the keys to winning AI” and that the U.S. needs to act now to craft nationwide rules that can help secure its advantage.
OpenAI released the document days before President-elect Donald Trump takes office, with CEO Sam Altman also previously donating around $1 million to Trump’s inaugural fund in hopes of fostering a positive relationship.
“There’s an estimated $175 billion sitting in global funds awaiting investment in AI projects, and if the U.S. doesn’t attract those funds, they will flow to China-backed projects —strengthening the Chinese Communist Party’s global influence”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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).
Broadcom Inc (AVGO): AI at the Core of Technology
A technician working at a magnified microscope, developing a new integrated circuit.
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On January 13, Jefferies named Broadcom as a top pick, saying that the semis company is a top idea in 2025. The firm raised its price target on the stock to $300 from $225 based on its strong and growing customer base. Broadcom has a rapidly growing AI chip market, driven by demand for custom-designed chips, or ASICs. Its advanced chips are anticipated to rival Nvidia’s in compute density as new technologies like 3.5D packaging and silicon photonics gain traction. The firm further revealed that Broadcom’s AI chip sales could generate over $60 billion in revenue by 2027. This could drive earnings per share to $12 or more. Its AI business has also gained momentum, specifically in training-focused chips, which need higher prices as designs become more complex. As these chips become larger and incorporate more advanced technologies, it will drive the average selling prices higher.
“AVGO Top Pick but Plenty of Growth to Go Around.”
Overall AVGO ranks 1st on our list of the top AI stocks on analyst ratings and news. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Disclosure: None. This article is originally published at Insider Monkey.
Jefferies, a leading global investment banking firm, has recently named Broadcom Inc. (AVGO) as its top pick for 2025. The decision was based on the rapid growth of the artificial intelligence (AI) chip market and the potential for Broadcom to generate $60 billion in revenue in the coming years.
Broadcom has been a key player in the semiconductor industry, providing a wide range of products for various applications, including data center networking, wireless communications, and industrial automation. With the increasing demand for AI chips in various sectors, such as autonomous vehicles, cloud computing, and healthcare, Broadcom is well-positioned to capitalize on this trend.
According to Jefferies, Broadcom’s strong product portfolio, technological expertise, and strategic partnerships give it a competitive edge in the AI chip market. The firm believes that Broadcom has the potential to significantly increase its market share and revenue in the coming years, leading to substantial growth for the company.
Overall, Jefferies is bullish on Broadcom’s prospects and sees it as a top investment opportunity for 2025. With the rapid growth of the AI chip market and the potential for $60 billion in revenue, Broadcom is poised to deliver strong returns for investors in the years ahead.
Jefferies told investors to dump Apple stock, warning of a potentially weak revenue number from the technology giant. Analyst Edison Lee downgraded shares to underperform from hold. Lee also cut his price target to $200.75 from $211.84, now reflecting the potential for shares to drop 12.7%. Lee said Apple should miss the revenue growth forecast of 5% for the first quarter of the 2025 fiscal year when it reports later this month. He said the company will likely guide second-quarter revenue to a percentage in the low single digits, which would also come in lower than consensus forecasts. Beyond financials, Lee called the outlook for artificial intelligence “subdued” at Apple. That can be a concern for market participants, whose attention has largely been focused on the potential of the technology for more than a year. In addition to chilled AI interest, he said poor iPhone sales can also be a reason for the weak revenue. To be sure, Lee’s downgrade is out of line with Wall Street. Nineteen analysts say to buy Apple and six say it’s a hold, according to Tipranks.com. Just three other analysts recommend selling the shares. The stock has dropped more than 8% in 2024, taking a chunk out of last year’s 30% surge. Apple reports earnings on Jan. 30.
Jefferies downgrades Apple to rare underperform rating, says revenue may disappoint
In a surprising move, investment firm Jefferies has downgraded tech giant Apple to a rare underperform rating. The firm cited concerns over Apple’s revenue potential, suggesting that the company may not meet expectations in the coming quarters.
This downgrade comes as a shock to many investors, as Apple has long been considered a top performer in the tech industry. However, Jefferies analysts believe that the company’s revenue growth may fall short of projections, leading to a disappointing performance for shareholders.
It remains to be seen how this downgrade will impact Apple’s stock price in the short term. However, investors should take note of Jefferies’ cautionary stance on the company’s future prospects and adjust their investment strategies accordingly.
Apple Inc. AAPL faces mounting pressure as Jefferies downgraded the tech giant to ‘underperform,’ citing concerns over revenue growth, following President Donald Trump‘s remarks about potential new U.S. investments from the company.
The Apple Analyst: Jefferies analyst Edison Lee cut his price target to $200.75 from $211.84, reported CNBC, projecting a 12.7% downside for the stock.
The rare bearish call stands in contrast to broader Wall Street sentiment, with only three other analysts recommending selling Apple shares compared to 19 buy ratings, according to Tipranks.com. The stock has already declined over 8% in 2024, following last year’s 30% gain.
The Apple Thesis: Lee warns Apple could miss its 5% revenue growth forecast for the first quarter of fiscal year 2025 and expects disappointing second-quarter guidance, citing weak iPhone sales and limited artificial intelligence developments.
The downgrade comes as Trump announced potential “massive investment” plans from Apple in the United States, revealed during his recent victory rally in Washington D.C. Trump cited a conversation with CEO Tim Cook, linking the investment to his election win and broader initiative to expedite approvals for companies investing $1 billion or more in the U.S.
Apple, which recently approached but fell short of a $4 trillion valuation, is set to report earnings on Jan. 30, with investors closely watching for signs of revenue weakness highlighted in the Jefferies report.
The contrasting narratives emerge amid strong market performance, with the tech-heavy Nasdaq 100 gaining 1.9% in its best week since November. Apple’s consensus price target stands at $245.17, based on 30 analyst ratings, with recent analysis from MoffettNathanson, Bernstein, and B of A Securities suggesting a modest 2.25% upside potential.
Price Action: Apple closed at $229.98 on Friday, up 0.75% for the day. In after-hours trading, the stock dipped 0.21%. Year to date, Apple’s stock is down 5.69%, but over the past year, it has gained 18.61%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Apple Gets Rare Downgrade From Jefferies: Analyst Warns On Slowing Revenue Growth, Missed Forecasts, And Falling iPhone Demand
In a surprising move, tech giant Apple (NASDAQ:AAPL) has received a rare downgrade from Jefferies analyst, warning investors about slowing revenue growth, missed forecasts, and falling iPhone demand.
The downgrade comes as a blow to Apple, which has been a market leader in the tech industry for years. Analysts had previously been bullish on the company’s prospects, but recent trends have raised concerns about its future performance.
According to the Jefferies analyst, Apple’s revenue growth has been slowing down in recent quarters, leading to missed forecasts and disappointing earnings reports. This has raised questions about the company’s ability to maintain its strong position in the market.
In addition, the analyst highlighted a decline in demand for Apple’s flagship product, the iPhone. With competition increasing in the smartphone market, Apple has been facing challenges in maintaining its market share and attracting new customers.
Despite these challenges, Apple remains a strong player in the tech industry, with a loyal customer base and a strong brand reputation. However, investors will be keeping a close eye on the company’s performance in the coming quarters to see if it can overcome these obstacles and continue its growth trajectory.
Overall, the downgrade from Jefferies serves as a reminder that even the strongest companies can face challenges in a rapidly changing market. Investors should carefully monitor Apple’s performance and future strategies to assess its long-term potential.
Investing.com — Jefferies updated its ratings on several gaming stocks amid growth prospects for 2025 and strategic developments across the sector.
The brokerage upgraded Boyd Gaming (NYSE:) and Las Vegas Sands (NYSE:) to “buy” on capital projects and balance sheet strength.
But Red Rock Resorts (NASDAQ:) was downgraded to “hold” on its capital spending cadence through 2026.
Churchill Downs (NASDAQ:) remains Jefferies’ top pick, supported by accelerating EBITDA growth and leverage improvement.
Jefferies noted that Las Vegas demand is expected to remain robust amid constrained supply, with Caesars (NASDAQ:) Entertainment and MGM Resorts (NYSE:) seen as undervalued despite operational challenges.
Macau’s recovery continues but lags pre-COVID levels, with recent Chinese economic stimulus offering modest support. LVS is seen gaining market share due to new suites, while Wynn Resorts (NASDAQ:) faces slight declines.
In regional markets, competition and economic uncertainty are likely to keep growth uneven. PENN Entertainment and CZR are poised for capital growth, while PENN’s strategic pivots could drive gains.
Jefferies shuffles rating on gaming stocks
Investment firm Jefferies has recently made some changes to its ratings on gaming stocks, providing insight into the sector’s performance and potential for growth.
In a recent report, Jefferies upgraded its rating on several gaming companies, citing strong revenue growth and positive market trends. Among the companies that received an upgrade were Activision Blizzard, Electronic Arts, and Take-Two Interactive. Jefferies noted that these companies have shown impressive performance in recent quarters and have a strong lineup of upcoming game releases.
On the other hand, Jefferies downgraded its rating on some other gaming stocks, including Zynga and Glu Mobile, citing concerns about slower revenue growth and increased competition in the mobile gaming market.
Overall, Jefferies’ ratings shuffle suggests a mixed outlook for the gaming sector, with some companies poised for growth while others may face challenges in the coming months. Investors should carefully consider these ratings when making investment decisions in the gaming industry.
