12 Best QQQ Stocks to Invest in Now

7. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a global technology leader that designs and develops semiconductor and infrastructure software solutions. Operating through its Semiconductor Solutions and Infrastructure Software segments, it provides products like networking components, connectivity solutions, and software infrastructure.

On March 7, Piper Sandler maintained an Overweight rating for the company with a $250 price target due to its AI-driven performance and networking growth. The company exceeded January quarter estimates and provided strong April quarter projections. Revenue from XPU and AI-related networking reached $4.1 billion in the FQ1 2025, which marked a 77% year-over-year increase. It is projected to be $4.4 billion in the April quarter, which represents a 44% rise.

This growth is driven by shipments of networking solutions to hyperscale customers who are investing in next-generation AI models. Broadcom Inc. (NASDAQ:AVGO) anticipates a serviceable addressable market (SAM) of $60 to $90 billion from its three primary hyperscale customers by FY27. Four additional hyperscale customers are now collaborating with Broadcom Inc. (NASDAQ:AVGO) to develop custom AI accelerators.

Broadcom Inc. (NASDAQ:AVGO) has exceeded expectations, solidified its AI leadership, and projected substantial growth in the AI market. This has led to a trillion-dollar market capitalization. Columbia Threadneedle Global Technology Growth Strategy stated the following in its Q4 2024 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) soared after the company reported quarterly results in December that defied expectations and further solidified the company’s already compelling AI narrative. The technology infrastructure powerhouse with leading positions across wireless, data center networking, AI semiconductors and infrastructure software reported strong results, including the usual prodigious cash flow generation, resulting in a double-digit increase to its dividend. More importantly, investors cheered the increased clarity concerning the company’s AI market opportunity, now estimated at $60 to $90 billion by 2027, up from $15 to $20 billion in 2024. This sizable uptick — and increased confidence provided by the management team about the AI opportunity — drove a re-rating in the stock and the company’s market cap eclipsed $1 trillion in value.”