6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Funds: 161
Number of Billionaire Investors: 26
Value of Billionaire Holdings: $14,457,993,630
Broadcom Inc. (NASDAQ:AVGO) is another leading technology company that engages in the designing, manufacturing, and marketing of semiconductors and infrastructure software, which are also its two main business segments. Its products and solutions are used by major technology companies, data centers, and enterprises.
On April 22, Barclays analyst Thomas O’Malley maintained a Buy rating on the stock with a price target of $215. On March 31, Broadcom Inc. (NASDAQ:AVGO) announced that it unveiled a new generation of optical connectivity solutions at OFC 2025. The company showcased advancements including co-packaged optics (CPO), and 200G/lane digital signal processors. The company is working with more than 15 industry partners to enable the widespread adoption of these technologies.
Financially speaking, the company grew its revenue by 25% year-over-year to reach $14,916 million. During the first quarter of 2025. Management noted that the growth was driven by AI semiconductors and infrastructure solutions. The AI segment revenue grew 77% whereas the infrastructure revenue grew 47% during the same time. Looking ahead, Broadcom Inc. (NASDAQ:AVGO) anticipates second-quarter revenue of around $14.9 billion. It is one of the best NASDAQ stocks to buy according to billionaires.
Mar Vista U.S. Quality Select Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:
“We maintain a positive outlook on Broadcom Inc. (NASDAQ:AVGO) shares, despite recent stock price pressure stemming from two key concerns: (1) uncertainty around potential tariffs and the impact on global growth, and (2) investor skepticism regarding the return profile of large-scale AI capex investments by hyperscalers. This skepticism has been amplified by the efficiency gains recently demonstrated by DeepSeek, an unknown Chinese software company, which developed a competitive large language model at a much lower cost. These efficiency gains stoked fears that hyperscalers may have overbuilt AI infrastructure.
Broadcom maintains a strong competitive position in the custom AI ASIC market, as well as a disciplined capital allocation, most recently reflected in the VMWare acquisition. That deal is already delivering better than-expected top-line growth and margin expansion. Broadcom is the leading provider of custom AI ASICs and has been steadily diversifying its customer base beyond its initial anchor client, Alphabet. Many hyperscalers are interested in developing custom ASICs, which are tailored to specific computing tasks, given their lower costs and attractive performance attributes relative to general-purpose GPUs from providers like NVIDIA.
While we remain constructive on Broadcom’s long-term prospects, we did trim our position earlier in the quarter at higher levels to reallocate capital toward a more favorable risk-reward opportunity. Nonetheless, Broadcom remains a core holding in our portfolio and offers an attractive margin of safety. We believe the company is well-positioned to grow intrinsic value by +20% over the intermediate term.”
