Broadcom Inc. (NASDAQ:AVGO) is recognized as one of the Trending AI Stocks on Wall Street. Goldman Sachs initiated coverage on the stock with a “Buy” rating and a price target of $315.00 on July 10. The firm highlighted the AI investment cycle’s transition and the potential for sustained growth in AI CapEx.

Broadcom holds a dominant position in infrastructure software due to a long-term M&A strategy. The company is expected to drive over 40% of its revenue from AI by 2026. With a premium valuation justified by its sole-sourced position at key silicon accounts, Broadcom continues to generate steady profitability in its core business.

Broadcom is uniquely positioned in the AI revolution with custom chip offerings and networking assets. While the potential for AVGO as an investment is acknowledged, other AI stocks may offer greater upside potential with less downside risk. For undervalued AI stock options, check out the free report on the best short-term AI stock from Insider Monkey.

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Read more at Yahoo Finance: Why Broadcom’s (AVGO) AI Momentum Has Goldman Sachs Backing the Stock