10 Stocks with Consistent Growth to Buy

7. Broadcom Inc. (NASDAQ:AVGO)

5-Year Revenue CAGR: 16.03%

Number of Hedge Fund Holders: 130

Broadcom Inc. (NASDAQ:AVGO) is an American technology company that designs, develops, and manufactures a wide range of semiconductor, enterprise software, and security solutions. Some of its solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. The company’s product portfolio serves the data center, networking, enterprise software, broadband, wireless, storage, and industrial markets.

The company is strategically positioned to capitalize on the growing demand for AI semiconductors. Broadcom Inc. (NASDAQ:AVGO) has developed specialized AI chip designs tailored to meet the specific needs of hyperscale cloud providers, allowing it to cater effectively to their requirements. The company has secured partnerships with major clients like Google, Meta, and ByteDance for its AI application-specific integrated circuits (ASICs), with Microsoft’s OpenAI expected to join this list soon.

In addition to its semiconductor advancements, the company’s acquisition of VMware has significantly boosted its infrastructure software revenue, which saw a remarkable 200% year-over-year increase. Revenue for infrastructure software was $5.8 billion, with VMware contributing $3.8 billion in Q3 alone. This growth reflects the successful integration of VMware’s offerings, as evidenced by the booking of over 15 million CPU cores of VMware Cloud Foundation (VCF) during the quarter.

Overall, Broadcom Inc.’s (NASDAQ:AVGO) strong performance in both semiconductor and software segments positions it well for future growth, making it an attractive stock option for investors.

Over the last five years, Broadcom Inc. (NASDAQ:AVGO) has maintained a steady revenue increase. This consistent performance underscores the company’s strength in its industry.

According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 130 hedge funds held stakes in Broadcom Inc. (NASDAQ:AVGO). ClearBridge Investments stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its “ClearBridge Large Cap Value Strategy” Q3 2024 investor letter:

“In IT, we bought Broadcom Inc. (NASDAQ:AVGO) as we believe the company has a long runway for growth with its custom silicon business, which should be more durable and less volatile than other components within the AI food chain. We also believe the acquisition of VMware creates another opportunity for steady, subscription-based durable growth that is still in its early innings. We believe the stock has an attractive risk/reward profile given the reasonable visibility toward mid-teens EPS growth at a low-20s P/E multiple.”