13 Best NASDAQ Stocks to Buy So Far in 2025

7. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor devices and infrastructure software company. It focuses on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. Its segments include Semiconductor Solutions and Infrastructure Software. Its offerings range from optical & copper physical layer devices, to set-top box SoCs, and Bluetooth to camera microcontrollers.

The company’s revenue for its Semiconductor Solutions rose by 11% year-over-year in FQ1 2025 mainly due to its AI revenue in particular, which alone rose by 77%. In FQ2, this AI revenue is expected to surge by 44% due to hyperscale customers that heavily invest in next-gen AI models. By FY27, 3 of these customers will potentially create a SAM of $60-$90 billion. Such clients also help the company develop systems to support massive AI clusters that range from 500,000 to 1,000,000 AI accelerators.

On March 7, Piper Sandler reaffirmed its Overweight rating on Broadcom Inc. (NASDAQ:AVGO) with a $250 price target due to its strong AI performance. Notably, the company is developing the industry’s first 2-nanometer AI XPU. Beyond its current 3 hyperscale customers, the company is engaged with 4 additional customers to develop custom accelerators for training next-gen frontier models.

Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”