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- Broadcom Corp. (NASDAQ: AVGO) stock is up sharply in the past year, but shares are pretty pricey.
- Here are three AI stocks that outperformed it and are cheaper.
It seems everyone wants to buy artificial intelligence (AI) stocks. After all, Nvidia Corp. (NASDAQ: NVDA), which has become a bellwether for the AI segment, rose almost 240% last year and is up 130% or so thus far in 2024. There are a lot of options when it comes to AI stocks, from Microsoft Corp. (NASDAQ: MSFT) to C3.ai Inc. (NASDAQ: AI). Even Tesla Inc. (NASDAQ: TSLA) can be seen as an AI stock. Another contender in the AI chip space is Broadcom Corp. (NASDAQ: AVGO).
Shares of leading fabless semiconductor company Broadcom are up about 63% in the past year, as well as more than 350% higher than five years ago. Analysts on average recommend buying the stock, and they project that the share price will rise another 17% or more in the next 12 months. However, as with Nvidia, the shares are pricey, changing hands for more than $1,000 apiece. Are there better options?
Turns out, the following three AI stocks have outperformed Broadcom in the past year, and they are trading for much less than 1,000 bucks a share. Let’s take a look.
Arista Networks
A cloud networking solutions provider.
- Year-over-year share price change: 79%
- 52-week range: $148.32 to $329.04
- Market cap: $91 billion
Rosy Revenue Outlook and Buying Back Shares
Analysts are hiking price targets.
Arista Networks Inc. (NYSE: ANET) is a leading provider of data-driven, client-to-cloud networking solutions for large data center, cloud computing, and AI environments. It was incorporated in 2004 and is headquartered in Santa Clara, California. Competitors include Cisco Systems Inc. (NASDAQ: CSCO) and Juniper Networks Inc. (NYSE: JNPR).
The company recently boosted its revenue guidance and announced a share buyback plan, prompting a number of price target hikes. Analysts on average now see the share price going to $319.29 in the coming year, which would be more than a 9% further gain. Of 25 analysts covering this AI stock, 16 recommend buying shares.
CrowdStrike
Cybersecurity and AI-powered workflow automation.
- Year-over-year share price change: 102%
- 52-week range: $139.37 to $365.00
- Market cap: $74 billion
Analysts Are Optimistic
Looking for 31% further upside potential.
Austin, Texas-based CrowdStrike Holdings Inc. (NASDAQ: CRWD) is focused on cybersecurity and AI-powered workflow automation. It recently partnered with Google Cloud and also expanded its partnership with Cloud Flare. It was established in 2011. Competitors include Palo Alto Networks Inc. (NASDAQ: PANW) and SentinelOne Inc. (NYSE: S).
Though some executives sold shares in May, analysts are optimistic about this AI stock. It has a further 31% to rise in the coming 52 weeks, based on their consensus price target of $400.47. Almost all of the 50 analysts who cover the stock recommend buying shares, 16 of them with Strong Buy ratings.
Wix.com
- Year-over-year share price change: 110%
- 52-week range: $73.39 to $174.09
- Market cap: $9 billion
A Fresh AI-Powered Website Builder
A website development platform provider from Tel Aviv.
Incorporated in 2006 and headquartered in Tel Aviv, Israel, Wix.com Ltd. (NASDAQ: WIX) is a website development platform provider. Its platform is built on a freemium business model, with the company earning its revenues through premium upgrades. It had over 250 million registered users in 2023, and earlier this year launched its AI-powered website builder.
The company just completed a $225 million share buyback program, and it posted a first-quarter earnings beat and lifted its revenue guidance. The mean price target of $186.83 indicates analysts currently see another 15% or so upside potential. Their consensus recommendation is to buy shares of this AI stock.
Wix.com (WIX) Stock Price Prediction: Is It a Buy?
Should I Invest in AI?
Is it a fad? A bubble?
Many AI stocks have soared in the past couple of years, and AI seems to be in headlines and in speculation everywhere. The question is whether AI is a fad, or if AI stocks are in a bubble. Signs suggest that it is more than a fad, but rather a trend, even a fundamental shift in industry and society. Whether stocks are in a bubble remains to be seen. As indicated above, analysts anticipate plenty of upside in Broadcom and these three other AI stocks.
Image Source: Y-Charts
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