Goldman Sachs Backs Nvidia and Broadcom as Top AI Stocks to Own

Chip giants get a fresh vote of confidence as AI enters its next phase

14 hours ago

Summary

Goldman’s message is simple. If you're serious about AI exposure, these two stocks deserve a spot on your watchlist.

Goldman Sachs just awarded Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) a major thumbs-up. Both stocks are now on the investment bank's list of top AI ideas, and analyst James Schneider gave both equities new Buy ratings.

Nvidia's story isn't new, but it's still strong. Schneider thinks the firm is the center of the AI revolution, not just because of its GPUs, but also because of its burgeoning software ecosystem, dedicated customers, and constant stream of new ideas. Goldman thinks there's still potential for the stock to go up, even though it has already gone up more than 20% this year. They set a price objective of $185.

Goldman likes what it sees from Broadcom, which is taking a new approach to AI. The company is making a lot of progress in custom AI chips and infrastructure software, which are two areas that are predicted to bring in more than 40% of its income by 2026. Schneider points out that Broadcom has strong connections with hyperscale cloud providers and that its stable profitability and sticky software make it worth more. What does he want? $315.

But here's the larger picture: Goldman thinks we're not at the conclusion of the AI tale; we're just starting the next act. The first wave was all about constructing infrastructure; now, it's about finding ways to make it work. That means greater chances for businesses like Nvidia and Broadcom that are already doing a lot of work.

Goldman's message is clear and to the point. If you really want to get into AI, you should put these two stocks on your watchlist and maybe even buy them.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.