We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other top tech stocks to buy according to billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? 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 as of Q4: 161
Fisher Asset Management’s Equity Stake: $5.54 Billion
Broadcom Inc. (NASDAQ:AVGO), headquartered in Palo Alto, California, continues to establish itself as a major player in the AI and data center infrastructure markets, leveraging its broad portfolio of semiconductor and software solutions. In its first quarter of fiscal 2025, which ended on February 2, 2025, the company reported record financial performance, driven largely by the success of its AI semiconductor solutions and infrastructure software divisions. Total consolidated revenue reached a record $14.92 billion, a 25% increase compared to the same quarter the previous year, beating Wall Street’s estimate of $14.61 billion. Adjusted EBITDA rose 41% year-over-year to $10.1 billion, while free cash flow increased by 28% to $6.0 billion. The company also surpassed earnings expectations, reporting adjusted earnings per share of $1.60 versus the anticipated $1.49.
AI-specific revenues for Q1 totaled $4.1 billion, representing a 77% increase year-over-year. These figures are part of the broader semiconductor solutions business, which itself grew 11% annually to $8.21 billion for the quarter. Infrastructure software revenue also saw a notable rise, jumping 47% to $6.7 billion. Net income for the quarter surged to $5.5 billion compared to $1.33 billion in the year-ago period.
CEO Hock Tan expressed optimism about the company’s continued momentum through 2025, especially in AI. He projected Q2 AI semiconductor revenue to rise further to $4.4 billion, citing strong ongoing investments from hyperscale partners in AI XPUs and connectivity infrastructure. Broadcom Inc. (NASDAQ:AVGO) also issued a bullish Q2 revenue forecast of $14.9 billion, ahead of the consensus estimate of $14.76 billion.
Despite Broadcom Inc. (NASDAQ:AVGO)’s exceptional operational and financial performance, the stock has faced challenges in 2025, falling approximately 23% year-to-date due to investor sentiments about risk assets and broader concerns over potential tariffs under President Donald Trump’s administration. Nonetheless, the company’s robust fundamentals, dominance in AI data center infrastructure, and aggressive growth projections suggest that the company remains well-positioned for sustained success in the rapidly evolving tech landscape.
Parnassus Core Equity Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) shares gained as the chipmaker achieved record high quarterly revenues driven by AI projects. News that the chipmaker is designing an AI server processor for Apple, in addition to custom chips it makes for other technology giants, further bolstered investor enthusiasm.
Broadcom gained on the strength of better-than-expected sales of AI chips and optimism on the revenue-generating potential of its wide-ranging AI initiatives. We continue to see upside in custom AI chips that Broadcom is well positioned to deliver.”
Overall, AVGO ranks 7th on our list of top tech stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of tech companies, our conviction lies in the belief that 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
