Broadcom (AVGO 1.13%) is not only the best play on the artificial intelligence (AI) revolution, it’s the best stock investment of all for 2025. That, at least, is the view of one enthusiastic researcher tracking the chipmaker’s shares. On news of it granting Broadcom its top pick for 2025 status, investors pushed the stock’s value up by more than 1% on Friday.
Meet the new No. 1
Jefferies is the company behind the recommendation; Friday morning, it tapped Broadcom as its No. 1 stock for the coming year. In doing so, it enacted a significant price target raise, to $300 per share from the preceding $225.
According to reports, Jefferies believes that Broadcom is beautifully placed for a pop, as it is a key developer and manufacturer of advanced, custom-designed chips (known as ASICs). Such products are ideal for the heavy processing demands of AI. Ultimately, by 2027 the company could reap over $60 billion in annual sales of chips that power AI functionalities.
Jefferies wasn’t the only Broadcom-tracker upping its price target that day. Morgan Stanley analyst Joseph Moore also made a change, lifting his price target to $265 per share from $233. Moore reiterated his overweight (buy, in other words) recommendation on the stock.
As AI advances, so should this stock
The AI market is, almost indisputably, Broadcom’s oyster. There’s little doubt that the already-hot demand for the crucial hardware to power the technology will continue to rise, most likely powerfully and sustainably. Broadcom seems like an obvious, and very good, bet on the world’s AI-driven future.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.