Fitch Ratings Upgrades Broadcom Inc. (AVGO) to BBB+ on AI Semiconductors Opportunities

Broadcom Inc. (NASDAQ:AVGO) is one of the best growth stocks to buy and hold forever. On September 22, Fitch Ratings upgraded the company to BBB+ from BBB, while maintaining a positive outlook. The upgrade underscores the ratings firm’s confidence in the company’s focus on AI semiconductors, which it expects to strengthen its financial profile.

In addition, the ratings firm remains confident about the company’s growing free cash flow and integration of VMware. The rating firm expects the positive momentum on AI and VMware integration to trigger an annual free cash flow of between $15 billion and $20 billion.

According to the rating firm, the tailwinds support the company’s capacity for deal-making while affirming strong investment rating levels. Broadcom’s revenue profile has improved significantly due to robust demand for its accelerators and network solutions.

Broadcom Inc. (NASDAQ:AVGO) is a global technology leader that designs, develops, and provides semiconductor and infrastructure software solutions for data centers, networking, broadband, wireless, and cybersecurity markets. Its offerings power critical markets and include products such as data center switches, wireless chips, mainframe security software, and enterprise security solutions.

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