We recently compiled a list of the 14 Best American Tech Stocks To Buy Now. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other American tech stocks.
American stocks moved up a bit on Monday, April 14 as investors focused on news about tech companies getting a break from President Trump’s tariffs. The S&P 500 rose by 0.8%, the tech-heavy Nasdaq rose by 0.6%, and the Dow Jones Industrial Average increased by about 0.7%.
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In recent days, President Trump and his advisers have given mixed signals on the future of tariffs on China and on specific industries. Over the weekend, big American tech companies scored a victory when it was revealed that the US had not put tariffs on smartphones, computers, and other consumer electronics.
However, on Sunday, US Commerce Secretary Howard Lutnick stated that these electronics would soon be covered under new tariffs, which would be different from those imposed on specific countries. President Trump also posted on social media that there would be “no exception” for these products. He also said that the government is looking at semiconductors and the entire electronics supply chain in the upcoming National Security Tariff Investigations.
Last week was the best week for the major indexes since at least 2023. However, with all this uncertainty, Wall Street is getting ready for another week of potential tariff-fueled ups and downs.
Methodology
To compile our list of the 14 best American tech stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American technology companies. We sorted our results based on market capitalization and picked the top 30 American stocks. Next, we focused on the 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 14 best American tech stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a leading American technology company that designs, develops and supplies a broad range of semiconductor, enterprise software and security solutions. Through its product offerings, the company serves the data center, cloud, networking, broadband, wireless, storage, industrial, and enterprise software markets. The company provides a wide range of solutions including service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom Inc. (NASDAQ:AVGO) is one of the best American stocks to buy.
The company is focused on expanding its portfolio through innovative solutions. On March 31, 2025, Broadcom Inc. (NASDAQ:AVGO) announced the expansion of its portfolio of optical interconnect solutions to support AI infrastructure. The new innovative technologies include advancements in co-packaged optics (CPO), 200G/lane DSP and SerDes, 400G optics, and PCIe Gen6 over optics. These innovative solutions are designed to support the growth and scalability of AI clusters. AI workloads require higher bandwidth, lower latency, and more power-efficient optical interconnects and Broadcom Inc. (NASDAQ:AVGO) is committed to meeting these demands. The company’s new solutions include low-power, high-bandwidth DSP, SerDes and CPO for reduced power consumption and improved signal integrity, and PCIe Gen6 over optics for enhanced connectivity between AI accelerators and other system components. Broadcom Inc. (NASDAQ:AVGO) also demonstrated its roadmap towards achieving 200T optical interconnect solutions.
Overall, AVGO ranks 9th on our list of the best American tech stocks to buy now. 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than 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.
