A Combination of Factors Lifted Broadcom (AVGO) in Q2

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In 2025’s second quarter, tariffs triggered market declines and recession fears, but a pause in tariffs sparked a historic rally as earnings remained resilient. In the second quarter of 2025, the fund underperformed the Russell 1000 benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 5.41%, and its shares gained 114.96% of their value over the last 52 weeks. On August 5, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $292.93 per share, with a market capitalization of $1.378 trillion.

Impax US Sustainable Economy Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) (Information Technology, Semiconductors) offers energy efficient data center compute solutions which, in addition to requiring less energy, facilitate broader economic participation by making connectivity more equitable. Stock returns in Q2 were driven by a combination of strong earnings, high demand for AI data centers, involvement in the custom application-specific integrated circuit (ASIC) chip market, and positive market sentiment.”

AVGO Stock: A Strong Buy Pick Backed by Robust Cash Flow and Dividend Growth

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the first quarter, compared to 161 in the fourth quarter.  In the fiscal second quarter of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $15 billion, up 20% year-over-year. While we acknowledge the risk and potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BROADCOM INC. (NASDAQ:AVGO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Broadcom Inc. (NASDAQ:AVGO) and shared the list of best stocks to buy for the next 6 months. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.