From Yahoo Finance: 2025-06-05 09:33:00

Doug Clinton from Deepwater Asset Management highlighted the increasing demand for AI services, with semiconductor companies benefitting the most. Broadcom Inc. (NASDAQ:AVGO) is one of Deepwater’s top holdings, known for making ASIC chips for specific applications. Major companies partnering with Broadcom for custom chips to challenge Nvidia’s monopoly and lower costs are expected to drive substantial growth in revenue and profits. Sands Capital Select Growth Strategy also sees Broadcom as a key player in systems scalability and compute growth, especially in AI models and computing power advancements. Broadcom’s ethernet networking solutions and custom accelerators support increases in computing power and alleviate bottlenecks in AI training and inference, driving incremental growth in the market.

Read more: Broadcom (AVGO) Bull Says Semiconductor Stocks Will ‘Keep Seeing Immediate’ AI Spending