Broadcom Inc. (NASDAQ:AVGO) is one of the The 10 best stocks to invest in according to billionaire Steve Cohen.
Broadcom Inc. (NASDAQ:AVGO) is one of Steve Cohen’s long-term stock picks. His hedge fund has had a stake in the chip company since the second quarter of 2018. At the time, this position comprised 892,000 shares. Within a year, the fund had increased this holding to more than 7.7 million shares. A lull followed, during which the fund reduced its holding and even sold it completely before opening a new position. This new position reached 8 million shares at its peak and was also sold. The latest holding, acquired in the first quarter of 2024, comprised almost 2.9 million shares at the end of the fourth quarter of 2025. This represents an increase of 80% compared to the filings filed in the third quarter of 2025.
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Broadcom Inc. (NASDAQ:AVGO) is on the radar of elite hedge funds in light of CEO Hock Tan’s structural reset of expectations. In early March, Broadcom projected its AI chip revenue alone would reach $100 billion by 2027. The company issued second-quarter revenue guidance of $22 billion, up 47% year-over-year, for a staggering $1.5 billion above the Wall Street consensus. Hedge funds are also betting on the shift from general GPUs to proprietary in-house accelerators (ASICs) designed by hyperscalers. Broadcom is currently the exclusive design partner of the big three of custom silicon: Google (TPU), Meta (MTIA), and OpenAI. This creates a recurring, high-margin revenue stream that is difficult for competitors like Marvell or AMD to disrupt.
While we recognize AVGO’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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