12 Best NASDAQ Stocks To Buy in 2025

7. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that specializes in the design and development of ASICs (application-specific integrated circuits) for diverse markets, including data centers, networking, and wireless. It has secured 3nm AI ASIC chip deals with leading tech giants, which showcase its expertise in AI.

In the fiscal year 2024, the company made a record revenue of $51.6 billion, with AI contributing $12.2 billion. This marked a 220% year-over-year increase in AI-related revenue, due to the demand for custom AI accelerators (XPUs) and AI networking solutions. BakerAvenue Wealth Management’s Chief Strategist, King Lip, favors Broadcom Inc. (NASDAQ:AVGO) due to its strong growth in custom AI chips. It mirrors NVIDIA’s growth while trading at a lower valuation. In FQ4 2024 alone, AI revenue grew 150%, which was fueled by a doubling of AI XPU shipments to 3 hyperscale customers and a 4x increase in AI connectivity revenue.

The company’s AI semiconductor revenue is projected to surpass non-AI semiconductor revenue in the coming years. It’s projecting a 65% revenue growth in AI-related sales for Q1 FY25 and is set for volume shipments of its next-generation 3-nanometer XPUs to hyperscale customers in H2 FY2025.

Broadcom Inc.’s (NASDAQ:AVGO) strong earnings and strategic positioning in the AI revolution make it a compelling long-term investment, according to Columbia Threadneedle Global Technology Growth Strategy. It stated the following in its Q3 2024 investor letter:

“Similar to the earnings results for Nvidia, shares of Broadcom Inc. (NASDAQ:AVGO) initially sold off after the company reported solid earnings that fell light of elevated market expectations, but the stock did recover from its drawdown in the matter of a few weeks. With an enticing combination of custom chip offerings as well as networking assets, Broadcom remains one of the best positioned companies as part of the AI revolution. Broadcom outlined a path to derive a majority of its revenue from the AI end market within a couple of years, and the non-AI part of the business has stabilized after a deep correction. The company’s dominant market position in its end markets, along with durable growth, strong margins and best-in-class capital allocation, presents an opportunity to compound capital over time.”