We recently published an article titled Billionaire Ken Fisher’s 10 Technology Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other technology stocks.
Technology stocks have faced heightened volatility in 2025, with market sentiment swinging sharply in response to President Donald Trump’s aggressive trade policies. On April 3, tech shares endured their worst day since the COVID-19 pandemic as Trump announced sweeping tariffs on all imported goods, including a 34% duty on Chinese imports, exacerbating fears of a global trade war. An iPhone maker led the steep declines among the “Magnificent Seven,” plummeting over 9% due to its reliance on Chinese manufacturing. Other tech giants also fell between 8% and 9%, while semiconductor and PC companies recorded double-digit losses. The tech-heavy NASDAQ tumbled 6%, marking its worst session over five years and deepening its year-to-date loss to more than 14%.
Despite the recent turmoil, broader optimism about technology and growth stocks remains underpinned by longer-term trends. Notably, Ken Fisher of Fisher Asset Management has emphasized that while mega-cap tech firms often face headwinds, they tend to outperform during bullish cycles and reflect broader market confidence. He argues that 2024’s rally was more expansive than many recognize, with tech and communication services stocks leading growth across the board. While tech stocks often decline more in bearish periods, their historical track record of resilience and growth during recoveries continues to make them attractive for long-term investors. This underscores why, even amid significant volatility, tech stocks retain strategic value for portfolios, particularly when the market regains momentum.
Signs of a potential rebound appeared later in April, as major indexes recovered modestly on April 24, with tech shares helping lead the rally. Investors responded positively to reports that the U.S. and China had resumed trade talks, despite earlier denials from Beijing. Trump’s announcement that some tariffs might be rolled back helped ease immediate fears, although uncertainty remains high. Analysts noted that the recent tech selloff had left the market oversold, setting the stage for short-term gains. However, mixed earnings reports and rising costs across industries continue to fuel caution, reinforcing the unpredictable nature of trade policy’s impact on tech and broader equity markets.
Our Methodology
For this article, we scanned Fisher Asset Management’s Q4 2024 13F filings to identify billionaire Ken Fisher’s technology stock picks with the highest upside potential. We compiled the tech equities with upside potential higher than 27% at the time of writing this article and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders as of Q4: 161
Fisher Asset Management’s Equity Stake: $5.54 Billion
Upside Potential as of April 30: 27.90%
Broadcom Inc. (NASDAQ:AVGO) is a leading American multinational technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Its diverse product portfolio supports critical industries such as data centers, networking, wireless, broadband, storage, industrial systems, and enterprise software. The company plays a vital role in enabling high-performance connectivity and computing, particularly in the rapidly growing artificial intelligence (AI) and cloud infrastructure sectors.
In the first quarter of fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) delivered record-breaking financial results, with consolidated revenue reaching $14.9 billion—an increase of 25% year-over-year. This growth was fueled by a surge in demand for AI semiconductor solutions and infrastructure software. AI-related revenue alone climbed 77% year-over-year to $4.1 billion, while infrastructure software revenue rose 47% to $6.7 billion. Adjusted EBITDA also hit a new high of $10.1 billion, representing a 41% increase from the prior year. The company reported free cash flow of $6.0 billion, up 28% year-over-year, underscoring its strong cash generation capabilities. Broadcom ended the quarter with $9.3 billion in cash and cash equivalents and returned significant capital to shareholders with a $2.774 billion dividend payout on December 31, 2024.
For the future, Broadcom Inc. (NASDAQ:AVGO) projects continued momentum into the second quarter of fiscal 2025, driven by robust investment from hyperscale partners in AI data center infrastructure. The company anticipates second-quarter revenue to remain steady at approximately $14.9 billion, with adjusted EBITDA expected to account for around 66% of that revenue. CEO Hock Tan emphasized the sustained demand for AI XPUs and high-speed connectivity solutions, reinforcing Broadcom’s strategic positioning in the evolving AI-driven technology landscape.
Investor confidence in Broadcom Inc. (NASDAQ:AVGO) continues to grow, with institutional interest in the stock surging. As of Q4 2024, Fisher Asset Management held approximately 24 million shares of the company, valued at over $5.5 billion. Hedge fund interest in Broadcom has also increased, with 161 funds tracked by Insider Monkey holding stakes worth over $22.2 billion by the end of the fourth quarter, up from 128 funds in Q3.
Mar Vista U.S. Quality Select Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:
“We maintain a positive outlook on Broadcom Inc. (NASDAQ:AVGO) shares, despite recent stock price pressure stemming from two key concerns: (1) uncertainty around potential tariffs and the impact on global growth, and (2) investor skepticism regarding the return profile of large-scale AI capex investments by hyperscalers. This skepticism has been amplified by the efficiency gains recently demonstrated by DeepSeek, an unknown Chinese software company, which developed a competitive large language model at a much lower cost. These efficiency gains stoked fears that hyperscalers may have overbuilt AI infrastructure.
Broadcom maintains a strong competitive position in the custom AI ASIC market, as well as a disciplined capital allocation, most recently reflected in the VMWare acquisition. That deal is already delivering better than-expected top-line growth and margin expansion. Broadcom is the leading provider of custom AI ASICs and has been steadily diversifying its customer base beyond its initial anchor client, Alphabet. Many hyperscalers are interested in developing custom ASICs, which are tailored to specific computing tasks, given their lower costs and attractive performance attributes relative to general-purpose GPUs from providers like NVIDIA.
While we remain constructive on Broadcom’s long-term prospects, we did trim our position earlier in the quarter at higher levels to reallocate capital toward a more favorable risk-reward opportunity. Nonetheless, Broadcom remains a core holding in our portfolio and offers an attractive margin of safety. We believe the company is well-positioned to grow intrinsic value by +20% over the intermediate term.”
Overall AVGO ranks 10th among billionaire Ken Fisher’s technology stock picks with huge upside potential. While we acknowledge the potential of 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
