12 Best Stocks to Own for Grandchildren

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 156

Broadcom Inc. (NASDAQ:AVGO), a global leader in semiconductors and infrastructure software, delivered record results in its third quarter of fiscal 2025, underscoring its growing dominance in AI and networking technologies.

The corporation reported Q3 revenue of $15.95 billion, up 22% year-over-year, fueled by strong demand for custom AI accelerators, networking solutions, and VMware’s software portfolio. AI-related revenue alone surged 63% to $5.2 billion, marking the eleventh straight quarter of growth, with expectations to reach $6.2 billion in Q4. Non-GAAP net income hit $8.4 billion, while free cash flow rose 47% year-over-year to $7.0 billion. AVGO also returned $2.8 billion to shareholders through dividends, declaring a quarterly payout of $0.59 per share payable September 30.

Looking ahead, Broadcom Inc. (NASDAQ:AVGO) issued Q4 guidance of $17.4 billion in revenue, a 24% increase from last year, highlighting continued momentum. A cornerstone of this growth is the company’s expanding role in AI semiconductors. Its custom AI accelerators have become a major revenue driver, supported by a landmark $10 billion contract with a leading AI customer, reportedly OpenAI. This deal is expected to meaningfully boost earnings and cash flow starting in 2026.