Broadcom Inc. (AVGO): This Mega-Cap Stock Is Poised To Outperform in 2025

We recently compiled a list of the 15 Small-Cap Stocks Poised to Outperform in 2025. Even though Broadcom Inc. (NASDAQ:AVGO) isn’t a small-cap stock, it is poised to outperform the market in 2025 like the other small-cap stocks highlighted in that article.

Fifteen small-cap stocks—predominantly under the technology sector—are taking center stage this year, boasting triple- to quadruple-digit performance in their share prices, thanks to the booming Artificial Intelligence sector.

In this article, we will dive into their performance and evaluate whether AVGO is poised to become the next big winner for your portfolio.

To come up with the list of the 15 hottest stocks, we only considered companies with more than $3 million in trading volume and less than $2 billion in market capitalization with the exception of Broadcom.

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO)

Broadcom Inc., like any other chipmaker, benefited from the growing demand for AI tools and programs.

During the past 52 weeks, shares of the company have grown by 119.94 percent, while its five-year stock price marked a whopping 690.14 percent jump.

Broadcom continues to be a leader in the AI ASCI and networking chips market. It has ongoing deals with Alphabet and Meta in addition to many other technology giants aiming to massively spend on AI hyperscaling.

Despite booking a whopping $58 billion in net debt, which is relatively high, analysts remained positive about the company’s prospects, placing positive earnings bets of as much as 20 percent for the firm beginning the first quarter of 2025.

Analysts, however, noted that the market will not be kind to Broadcom’s stocks when its revenue growth rate slows.

While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.