Broadcom (AVGO) Declined Along with Peers

Columbia Threadneedle Investments, an investment management company, released its “Columbia Threadneedle Global Technology Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter of 2025 was challenging for U.S. equities, marked by substantial policy shifts from the new U.S. administration, resulting in declines across all major U.S. indices.  In the quarter, the fund returned -12.26% compared to the S&P Global 1200 Information Technology Index-net’s -11.64%. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its first-quarter 2025 investor letter, Columbia Threadneedle Global Technology Growth Strategy 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 5.25%, and its shares gained 63.58% of their value over the last 52 weeks. On June 10, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $244.63 per share, with a market capitalization of $1.15 trillion.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:

“Semiconductor and infrastructure software solutions provider Broadcom Inc. (NASDAQ:AVGO) declined during the quarter for many of the same reasons that created investor angst for NVIDIA and other AI-exposed technology leaders. Increased geopolitical tensions brought about by shifting trade policy and concerns that the massive spending to build out AI could come to an end, weighed on the stock. The company did dispel some fears of peaking AI spending after reporting growth for AI revenue as part of its quarterly earnings report.”

Jim Cramer on Broadcom (AVGO): “I'm Not Buying the Bear Case”

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 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 the list of tech stocks on Wall Street’s radar. Jackson Peak Capital highlighted Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter and noted that the stock fell during the quarter due to selloff following the launch of the Chinese LLM Deepseek. 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.