Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned 9.96% gross of fees and 9.72% net of fees compared to S&P Global 1200 Information Technology Index’s 12.35% return. Corporate earnings, lower interest rates, and expectations of further rate cuts, along with supportive Federal Reserve actions, led to an upward trend in stock prices. Large-cap growth stocks outperformed small-caps in the quarter. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Threadneedle Global Technology Growth Strategy highlighted stocks like Broadcom Inc. (NASDAQ:AVGO) in the second quarter 2024 investor letter. Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 11.85%, and its shares gained 110.96% of their value over the last 52 weeks. On September 27, 2024, Broadcom Inc. (NASDAQ:AVGO) stock closed at $175.52 per share with a market capitalization of $819.78 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q2 2024 investor letter:
Broadcom Inc. (NASDAQ:AVGO) also performed well during the quarter, as the company reported better-than-expected earnings, with upside from demand related to AI. This long-term holding is strongly positioned to benefit from continued AI demand, with AI sales in the quarter up 400% over the prior year. Overall, AI-related revenue accounted for 30% of total revenue in 2024 and is on pace to represent a majority of the company’s revenue within two to three years.
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 15th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 130 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the second quarter which was 115 in the previous quarter. In the fiscal Q3 2024, Broadcom Inc. (NASDAQ:AVGO) reported consolidated net revenue of $13.1 billion, up 47% year-on-year. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Broadcom Inc. (NASDAQ:AVGO) and shared the list of trending AI stocks on latest news and analyst ratings. Parnassus Value Equity Fund established a position in Broadcom Inc. (NASDAQ:AVGO) during Q2 2024, due to its promising AI upside. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.