Stacy Rasgon on Broadcom (AVGO), Other Major AI Stocks: No Sustainability Worries in Short Term

We recently published Top 10 Stock Recommendations You Can’t Miss Amid Growing AI Bubble Fears. Broadcom Inc. (NASDAQ:AVGO) is one of the top recommended stocks.

Stacey Rasgon, senior U.S. semiconductor analyst and managing director at Bernstein, recently talked about major semiconductor companies and latest AI deals in a program on CNBC. Rasgon believes there will be an “air pocket” for major AI stocks in the future, but he does not see a major decline happening anytime soon.

“I mean you worry about sustainability and that’s always been the big concern but I think a lot of the things that we’ve seen over the last few weeks and months suggest that things can be sustainable for longer, right?” Rasgon said. “We had Broadcom Inc (NASDAQ:AVGO) report earnings a few weeks ago where they talked about a new major AI customer next year, looks like it’s OpenAI, and the CEO Hock Tan, who’s like 73 years old by the way, has agreed to stick around till 2030 and his retention incentives are all around AI revenues that get to some very big numbers by the end of the decade if he hits his targets, you know, as much as $120 billion. And I’ve said for a long time at some point there will probably be an air pocket or something. I mean, it has to be, but it’s not now. It’s not this year. Doesn’t look like it’s next year. It may not be 2027. For now, I think these can still work.”

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Shares of fellow semiconductor giant Broadcom Inc. (NASDAQ:AVGO) also outperformed during the quarter, as customer demand for the company’s custom accelerator chips remained insatiable despite the uncertain economic environment. The company is on pace for 10 consecutive quarters of AI-related semiconductor growth and expects continued strong demand persist, due to the sizable AI opportunity. In addition to its dominant market position, the company’s history of strong capital returns to shareholders results in a favorable outlook for a sizable investor base.”

While we acknowledge the potential of AVGO as 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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