We just covered the 10 Best Pick and Shovel AI Stocks to Buy for the Long Term.
Broadcom Inc. (NASDAQ:AVGO) ranks #6 (see 5 Best Pick and Shovel AI Stocks to Buy for the Long Term)
Short Interest: 1.2% Broadcom Inc (NASDAQ:AVGO) is one of the most important pick-and-shovel names in the AI revolution. It designs custom AI chips for hyperscalers like Google, Meta, and others, tailoring silicon to specific workloads instead of selling general-purpose GPUs. This business involves long co-development cycles, deep integration into customer data centers, and high switching costs, and that’s exactly where AVGO’s moat comes from.
But custom GPUs isn’t the only growth catalyst for the stock. Broadcom plays a central role in Ethernet-based data center infrastructure that moves massive amounts of data between thousands of GPUs. Its high-end switch ASICs are the core engines inside these networks.