5 Best Stocks to Buy in 2026 According to Billionaire D.E. Shaw

3. Broadcom Inc. (NASDAQ:AVGO)

D. E. Shaw’s Q1 2026 Stake: $2 billion 

Semiconductor designer Broadcom Inc. (NASDAQ:AVGO)’s shares have been quite volatile over the past couple of days. While they are up by 15% year-to-date, they lost 12% between June 18th and July 2nd, only to gain 11% since then. On June 30th, Jefferies discussed Broadcom Inc. (NASDAQ:AVGO) as it reiterated a Buy rating and a $550 share price target. It discussed the chip company’s AI business and outlined that Broadcom Inc. (NASDAQ:AVGO) was benefiting from increased visibility into future earnings. Jefferies added that the firm’s Tensor AI chip business with Google was also doing well.

Broadcom Inc. (NASDAQ:AVGO)’s AI chip demand was at the center of a 19.5% share price drop between June 3rd and 5th as it failed to raise its revenue guidance for the products. Erste Group downgraded the shares to Hold from Buy on July 7th and outlined that it believed that the current share price levels reflect most of the firm’s valuation.

Carillon Eagle Growth fund discussed Broadcom Inc. (NASDAQ:AVGO) in its Q1 2026 investor letter:

Broadcom was weak for the quarter as higher inflation led investors to fear a slowdown in hyperscaler spending. This ed to lower spending on custom silicon, the main reason for Broadcom’s strength over the last couple of years. We believe Broadcom still has some of the best tech in the space and will be one of the biggest winners from AI.