10 Best Fundamental Stocks to Buy According to Billionaires

6. Broadcom Inc. (NASDAQ:AVGO)

5-year Revenue Growth: 19.1%

5-year Net Income Growth: 30.7%

Number of Billionaire Investors: 25

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is engaged in designing, developing, and supplying semiconductor and infrastructure software solutions. Daiwa upped the company’s stock to “Buy” from “Outperform.” Notably, the firm expects 4 strong drivers for the company going forward. These include Broadcom Inc. (NASDAQ:AVGO)’s application-specific integrated circuit processors, networking, and the acquisition of VMware offering growth as well as core semiconductor business. Elsewhere, TD Cowen maintained a positive stance on the company’s stock.

TD Cowen’s analyst, Joshua Buchalter, mentioned Broadcom Inc. (NASDAQ: AVGO)’s performance in AI revenue as a critical factor for the optimistic outlook. The analyst also highlighted that the demand for AI infrastructure remains strong over the near term, aiding its growth prospects. Furthermore, Broadcom Inc. (NASDAQ:AVGO)’s ability to get new projects as well as fuel revenue in critical areas such as AI demonstrates a strong business strategy. Overall, the analyst’s views strengthen the importance of AI revenue to the company’s overall financial health and the confidence of the broader market in Broadcom Inc. (NASDAQ:AVGO)’s capability to scale operations through new customers.

Renaissance Investment Management, an investment management company, published the Q4 2024 investor letter. Here is what the fund said:

“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”