Why AI Stock Broadcom Was Rising on Monday

Key Points

• It was flagged as a top stock by a global bank's analyst team.

• The researcher believes the company is an outlier for its growth and the quality of its operations.

• 10 stocks we like better than Broadcom ›

Broadcom (NASDAQ: AVGO), the specialty chip company that's at the forefront of the artificial intelligence (AI) revolution, was outpacing many other companies on the stock market Monday. Its shares were trading nearly 3% higher in late-session activity thanks in no small part to inclusion on an elite list compiled by a researcher. By contrast, the S&P 500 index was only up by 1.3% at that point.

Making an elite list

That morning, UBS selected 15 out of 85 stocks filtered by its proprietary screener to be top picks. Specifically, it feels that such picks are in the upper 25% of companies in their peer group in terms of growth and the quality of their operations.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

One of them was Broadcom, which in terms of market capitalization is the No. 2 out of the chosen stocks (first place belonged to Google parent Alphabet).

Broadcom is on many analyst and investor watch lists due to its position as a key supplier of the chips that power AI functionalities. There is a deep, almost inexhaustible demand for such technology at the moment, and that's helping to power the company's fundamentals notably higher.

A tech trend that really has legs

We shouldn't count on that trend sputtering or even slowing down to much of an extent. Late last year CEO Hock Tan opined that the thirst for AI could drive the processor market for that segment to $60 billion and $90 billion in sales within a few short years. Considering that Broadcom's already-impressive take from such goods was slightly over $12 billion, it's standing in front of a huge opportunity.

Should you invest $1,000 in Broadcom right now?

Before you buy stock in Broadcom, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.