From Yahoo Finance: 2025-06-03 06:05:00

AI technology is expanding rapidly, with Generative AI and agentic AI leading the charge. Redburn analyst Mike Harrison explores the market, noting that ASICs are key for hyper-scalers and tech companies. He recommends Broadcom and Arista Networks as strong buys for investors eyeing the AI buildout.

Broadcom, a semiconductor giant, boasts a $1.1 trillion market cap and $54.5 billion in revenue. The company’s product lines cater to data centers and networks, making it a key player in the ASIC segment crucial for AI and cloud service providers.

Arista Networks specializes in networking solutions for data-driven systems, catering to AI and data center routing environments. The company’s revenue and earnings have been on the rise, with strong financial performance impressing analysts like Harrison, who rates the stock as a Buy with a $112 price target.

Both Broadcom and Arista Networks hold Strong Buy ratings from analysts, with potential one-year upside gains of 24% and 29%, respectively. Investors looking for exposure to the growing AI market may find these companies appealing in the current tech landscape.

Read more: Analyst Says These 2 Stocks Set to Thrive in AI Buildout