Broadcom (AVGO) Declined 28% in Q1

Jackson Peak Capital, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +33.2%, net compared to MSCI ACWI’s ‒ 0.9% return and HFRX Equity Hedge Index’s +0.2% return. Fundamental longs, event-driven longs, and net exposure management led the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Jackson Peak Capital 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 25.66%, and its shares gained 86.32% of their value over the last 52 weeks. On June 4, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $261.08 per share, with a market capitalization of $1.228 trillion.

Jackson Peak Capital stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) was a detractor as a long. AVGO is a beneficiary of the AI cycle, with its custom ASICs and software solutions. The stock declined 28% during the quarter due to the selloff following the launch of the Chinese LLM Deepseek, which was at first seen as a threat to AI infrastructure and semiconductor needs, and macro uncertainty.”

Analysts Stay Bullish on Broadcom (AVGO), Citing Recovery Potential and AI Tailwinds

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.  While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Broadcom Inc. (NASDAQ:AVGO) and shared list of buzzing AI stocks on latest news and ratings. In addition, please check out our hedge fund investor letters Q1 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.