10 Best Momentum Stocks to Buy According to Hedge Funds

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128 

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. Known for its leadership in the semiconductor industry, the company plays a key role in powering innovations across various sectors, including networking, data centers, wireless communications, and broadband.

Broadcom Inc. (NASDAQ:AVGO) has been making notable strides in recent months, with strong financial performance and key technological advancements. In the fourth quarter of fiscal year 2024, the company reported a 51% year-over-year increase in revenue, reaching almost $14.1 billion. This growth was driven by a 12% rise in semiconductor solutions and a 196% surge in infrastructure software revenue. The company also announced an 11% increase in its quarterly dividend to $0.59 per share for fiscal year 2025.

Broadcom Inc. (NASDAQ:AVGO)’s strategic purchase of VMware has bolstered its market position, with VMware’s operating margin reaching an impressive 70%. The company is positioning itself for significant growth in the AI industry, with projections suggesting a serviceable addressable market of $60 to $90 billion by fiscal 2027. This growth is primarily fueled by key partnerships with significant hyperscalers, including Google, Meta Platforms, and ByteDance.

Currently, 128 hedge funds within the Insider Monkey Q3 2024 database held a position in the stock.