We recently published a list of Top 10 AI Stocks Analysts Are Monitoring. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other top AI stocks analysts are monitoring.

CNBC has recently confirmed that artificial intelligence firm Anthropic has closed its latest Series E funding round at a $61.5 billion post-money valuation. Led by Lightspeed Venture Partners, the $3.5 billion round also included investors such as Salesforce Ventures, Cisco Investments, Fidelity Management & Research Co., General Catalyst, D1 Capital Partners and Jane Street.

According to Anthropic, the latest funding shall be used to advance the development of next-generation AI, particularly to “expand its compute capacity, deepen its research in mechanistic interpretability and alignment, and accelerate its international expansion in Asia and Europe.”

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“The latest investment “fuels our development of more intelligent and capable AI systems that expand what humans can achieve” and that “continued advances in scaling across all aspects of model training are powering breakthroughs in intelligence and expertise.”

– Krishna Rao, Anthropic’s CFO, said in a release.

The latest announcement by Anthropic follows the launch of Claude 3.7 Sonnet and Claude Code, with the former being a hybrid reasoning model and the latter being an agentic coding tool. According to Anthropic, its Claude 3.7 Sonnet has set a new high-water mark in coding abilities, setting the stage for developing AI systems that can serve as true collaborators in the future.

It further elaborated how businesses are increasingly turning to Claude to transform their operations. From Thomson Reuters’ tax platform CoCounsel using it to assist tax professionals; to Novo Nordisk leveraging Claude to reduce clinical study report writing; and even powering Amazon’s Alexa+, Anthropic is committed to leveraging artificial intelligence to help advance human progress.

Meanwhile, the Claude Code has been an early product but has been an asset for test-driven development, debugging complex issues, and large-scale refactoring. Anthropic plans to continually improve it based on its usage, with the goal of better understanding how developers use Claude for coding to inform future model improvements.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On March 3^rd, Reuters reported that chip designers Nvidia and Broadcom (NASDAQ:AVGO) are running manufacturing tests with Intel, thereby demonstrating early confidence in Intel’s advanced production techniques.

These tests will determine whether the two companies will be committing hundreds of millions of dollars worth of manufacturing contracts to Intel. The two companies are testing Intel’s 18A manufacturing process, a series of technologies and techniques proficient at making advanced artificial intelligence processors and other complex chips. It’s important to note that these tests are ongoing and do not guarantee whether any manufacturing agreement will materialize.

“We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem.”

– Intel spokesperson.

Overall, AVGO ranks 4th on our list of top AI stocks analysts are monitoring. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.