10 Best Stocks to Buy According to Billionaire Chris Rokos

7. Broadcom Inc. (NASDAQ:AVGO)

Rokos Capital Management’s Stake as of Q4 2024: $118.67 million

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a global technology leader with a significant presence in both hardware and software. The company’s core competency is providing networking and custom chips for a wide range of applications.

On April 10, Cantor Fitzgerald analyst C.J. Muse reduced Broadcom Inc. (NASDAQ:AVGO)’s price target from $300 to $250 while keeping an Overweight rating on the company’s stock. Muse’s comments came after a recent investor call with Broadcom’s top executives. Despite persistent macroeconomic risks such as tariffs and market volatility, Broadcom’s business outlook is stable, according to the analyst. The company continues to see high demand for AI, which is considered crucial for hyperscale computing suppliers. Furthermore, the non-AI semiconductor industry looks to have reached a low point, while the software section remains stable.

In the first quarter of 2025, the company’s Semiconductor Solutions revenue increased by 11% year-over-year, owing mostly to an increase of 77% in AI revenue. This AI revenue is predicted to increase by 44% in the second quarter due to hyperscale clients investing extensively in next-generation AI models.

Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:

“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.”