Analyst Says Broadcom (AVGO) is 'Too Expensive' - 'Don't Think They're Going to Take Over Nvidia'

We recently published 10 Stock News You Should Pay Attention To. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks to watch in September.

Stephen Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, said in a recent program on CNBC that Broadcom is expensive. However, he believes it’s a good “alternative” for people looking for “less advanced” chips.

“I’m not worried about Nvidia given its growth rate. Sure, it’s expensive, but given its growth rate, the peg is not overly out of sight. Broadcom, on the other hand, I think Broadcom is too expensive, and I don’t think they’re going to take over Nvidia anytime soon. But for less advanced chips that people want, it’s a good alternative.”

For the fiscal fourth quarter, AVGO expects $6.2 billion in AI revenue, up 66% from a year earlier. The company said it secured $10 billion in AI infrastructure orders from a new customer. Many analysts believe this customer is OpenAI. Some media reports said the two companies co-designed a chip that will be launched next year.

Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) was the largest contributor to our portfolio performance in the second quarter after reporting strong operating results and guidance. The stock benefited from continued invest tor enthusiasm for high growth momentum stocks, as well as from companies with exposure to artificial intelligence. Importantly, Broadcom has been growing its hyperscale and connectivity product portfolios, resulting in increasing revenue exposure to faster growing artificial intelligence applications and offsetting a slowdown in its legacy semiconductor business.”

While we acknowledge the potential of AVGOas an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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