13 Best Performing NASDAQ Stocks According to Hedge Funds

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2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 156

Market Capitalization: $1.60 trillion

Year-To-Date Performance: 45.95%

Broadcom Inc. (NASDAQ:AVGO) is one of the best performing NASDAQ stocks according to hedge funds. On October 1, the company announced the achievement of industry-leading quality and readability of Co-Packaged Optics (CPO). Broadcom achieved one million cumulative 400G equivalent port device hours of “flap-free” operation for its CPO technology, specifically in partnership with Meta. The milestone validates the maturity, reliability, and production readiness of Broadcom’s CPO platform for use in next-generation hyperscale data centers supporting AI and cloud infrastructure.

CPO technology achieves a 65% reduction in optics power consumption compared to traditional pluggable module solutions. At the same time, it delivers higher link reliability and bandwidth density by tightly integrating optical engines with switch silicon. Key engineering features underlying this reliability include: advanced thermal management and control systems; proven optical engine packaging with built-in monitoring; robust firmware and link diagnostics; and end-to-end validation across electrical, optical, and mechanical domains.

The company emphasized that CPO is now production-proven and ready to scale beyond research concept to widespread commercial use. As data center switch bandwidth needs exceed 51.2 terabits per second, CPO technology is positioned as a sustainable solution to the power and physical limitations of legacy pluggable optics. It will also be foundational for future AI and cloud networking architectures.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductor devices and infrastructure software solutions. It operates through two segments: Semiconductor Solutions and Infrastructure Software. Broadcom’s technologies are used in data centers, networking, broadband, wireless communications, storage, and industrial applications.

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