Billionaires Are Buying These 2 Top Artificial Intelligence (AI) Stocks Hand Over Fist

Investing in fundamentally strong growth companies with sustainable competitive advantages can be a smart long-term strategy for astute investors. With artificial intelligence (AI) emerging as a major investment trend, it is no surprise that billionaires have also been actively pursuing high-quality AI-powered stocks.

Broadcom (NASDAQ: AVGO) and Apple (NASDAQ: AAPL) seem to fit the bill and have been picked up by multiple billionaire investors and investment funds. Here’s why retail investors should also follow their path and consider taking at least a small position in these stocks now.

Broadcom

Semiconductor chip designer and enterprise software player Broadcom’s shares are up 25% in 2024. While a 10-for-1 stock split in July 2024 played a major role in improving investor sentiment, many billionaire investors identified the growth potential in this stock in the second quarter of 2024. Some prominent ones were Ken Griffin’s Citadel Advisors, the late Jim Simons’ Renaissance Technologies, Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management, Jerome Dodson’s Parnassus Investments Holdings, and DE Shaw’s David Shaw.

The increasing adoption of complex AI technologies has emerged as one of Broadcom’s most prominent growth catalysts. Broadcom accounts for nearly 80% share of the data center networking chips market. In the third quarter of fiscal 2024 (ended Aug. 4), the company’s networking segment revenue soared 43% year over year to $4 billion. The solid performance was driven by robust demand from hyperscalers for the company’s AI-optimized networking solutions and custom AI accelerators.

In the third quarter, sales of Ethernet switching products such as Tomahawk 5 and Jericho3-AI were up more than fourfold year over year. Sales of custom AI accelerators, which can be more efficient for specific activities instead of general-purpose GPUs, were up 3.5 times year over year in the third quarter. The AI accelerator business is very profitable and scalable and has high barriers to entry. Subsequently, the company has raised its fiscal 2024 AI…

..

Read More

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *