10 Best Quality Stocks to Buy Before 2026

​4. Broadcom Inc. (NASDAQ:AVGO)

Analyst Upside Potential: 31.68%

Number of Hedge Fund Holders: 183

​Broadcom Inc. (NASDAQ:AVGO) is one of the Best Quality Stocks to Buy Before 2026. Broadcom Inc. (NASDAQ:AVGO) topped Wall Street estimates during its fiscal Q4 2025 earnings, released on December 11. However, the stock price has fallen more than 16% since the release.

​To talk about the earnings and the market selloff that followed, Kim Forrest, founder and chief investment officer at Bokeh Capital Partners LLC, and William Kerwin of Morningstar appeared on a Schwab Network interview on December 13. Kim noted that at the first appearance, the numbers looked great as they exceeded Street expectations, and demand looked good as well. However, the earnings call shifted the sentiment based on some products waiting for shipment, larger than anticipated backlog, and a 100 basis point decline in margins. Kim added that while the results were not bad, the AI investor sentiment has shaped in a way that if a company does not exceed expectations greatly, the sentiment turns negative.

​William also expressed surprise over the market reaction. He noted that the investment case for Broadcom Inc. (NASDAQ:AVGO) remains intact, driven by accelerating AI demand. He highlighted that the company enjoys a significant benefit based on its co-designed TPU chip with Google, which has also seen immense demand. William added that Morningstar remains bullish on the stock, similar to Kim Forrest of Bokeh Capital Partners.

​Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.