10 Best Stocks to Invest In According to Billionaire Steve Cohen

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6. Broadcom Inc. (NASDAQ:AVGO)

Point72 Asset Management’s Stake: $989 Million

Broadcom Inc. (NASDAQ:AVGO) is one of the long-term stock picks of Steve Cohen. His hedge fund has held a stake in the chip firm since the second quarter of 2018. Back then, this position comprised 892,000 shares. Within a year, the fund had upped this stake to more than 7.7 million shares. A slow period followed, during which the fund trimmed the stake and even sold it off completely before opening up a new position. This new position reached 8 million shares at peak and was sold off as well. The latest holding, purchased in the first quarter of 2024, comprised nearly 2.9 million shares at the end of the fourth quarter of 2025. This represents an increase of 80% compared to filings for the third quarter of 2025.

Broadcom Inc. (NASDAQ:AVGO) is on the radar of elite hedge funds in light of CEO Hock Tan’s structural reset of expectations. In early March, Broadcom projected that its AI chip revenue alone would hit $100 billion by 2027. The company issued Q2 revenue guidance of $22 billion, 47% YoY growth, which was a staggering $1.5 billion above Wall Street consensus. Hedge funds are also betting on the shift from general GPUs to proprietary, in-house accelerators (ASICs) designed by hyperscalers. Broadcom is currently the exclusive design partner for the Big Three of custom silicon: Google (TPUs), Meta (MTIA), and OpenAI. This creates a high-margin, recurring revenue stream that is difficult for competitors like Marvell or AMD to disrupt.

While we acknowledge the potential of AVGO to grow, 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 AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.

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