Will artificial intelligence drive Broadcom (Avgo) share price higher?

Broadcom (AVGO) is a dominant semiconductor firm whose share price has risen more than 600% over the last five years. Going forward, tailwinds from artificial intelligence (AI) should propel the stock even higher.

Is Avgo a good buy?

AVGO’s impressive financial results, particularly the contributions from AI, played a key role in this decision. Notably, the management has significantly increased its AI spending target from $4 billion in 2023 to more than $8 billion in 2024. Currently, 86.7% of top-rated analysts rate AVGO as a Strong Buy or Buy, while 13.3% consider it a Hold.

What is Avgo & how will it impact AI?

Moreover, AVGO showcased the continuous wave (CW) laser with high efficiency and high linearity for silicon photonics (SiPh) modulation at 200G. These breakthroughs will revolutionize high-speed interconnects within AI clusters, facilitating front-end and back-end generative AI compute networks.