Broadcom (AVGO) Surged Following the News of $10 Billion Booking Order

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. large-cap growth equities continued to recover from a sharp sell-off in early April. Strong corporate earnings, investor enthusiasm around artificial intelligence (AI), and growing expectations for Federal Reserve policy easing drove the robust gains. The portfolio returned 6.3% (net) in the quarter, compared to the benchmark’s 10.5% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) is a leading technology company that designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 3.00%, and its shares gained 148.99% of their value over the last 52 weeks. On November 26, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $397.57 per share, with a market capitalization of $1.877 trillion.

Sands Capital Select Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) is a key enabler of systems scalability and compute growth through ethernet networking and custom accelerators. In the third quarter, Broadcom delivered 63 percent year-over-year growth in AI semiconductor revenues. However, the key accelerator for shares of the business was the news that Broadcom booked $10 billion in orders to deliver custom semiconductor chip designs to a fourth customer. This will materially impact 2026 revenues and in our view, further solidifies Broadcom’s position as the preferred provider of custom AI-chip design services that allows businesses to optimize hardware for their specific workloads.”

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

Broadcom Inc. (NASDAQ:AVGO) is in the 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the second quarter, compared to 158 in the previous quarter. In the fiscal third quarter of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $16 billion, up 22% 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 AI stocks in focus on Wall Street. In addition, please check out our hedge fund investor letters Q3 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.