Long-Term Stock Portfolio: 15 Best Stocks for 15 Years

6) Broadcom Inc. (NASDAQ:AVGO)

10-year Revenue Growth: ~26.5%

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is engaged in the designing, developing, and supplying of various semiconductor devices. Morningstar believes that the company’s primary valuation drivers revolve around the growth of its AI chip business as well as its capability to extract growth and operating leverage from VMware. The firm also expects continued inorganic growth over the long term. It expects high AI sales to fuel supernormal growth for Broadcom Inc. (NASDAQ:AVGO) over the next 5 years.

Broadcom Inc. (NASDAQ:AVGO)’s strength in both chips and software enables it to earn terrific accounting and economic profits, and Morningstar believes that its competitive positioning will continue to allow it to do so for the upcoming 20 years. As per the firm, Broadcom Inc. (NASDAQ:AVGO) will focus on healthy cash generation. Over the long term, Morningstar expects that the emphasis will be on improving its dividend and bolting on more acquisitions, which can help drive its cash flow. The company is expected to be a significant beneficiary of rising AI spending, which can spur strong growth for its networking semiconductor sales.

Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Broadcom Inc. (NASDAQ:AVGO) had a strong quarter, mostly from the two days that followed its earnings release announcing a significant expansion in the addressable market for its custom AI silicon offerings. As a leader in data center connectivity and custom silicon, the company is now considered to be one of the biggest beneficiaries from the growth in AI spending.”