We recently published an article titled Billionaire Ken Fisher's 10 Technology Stock Picks with Huge Upside Potential . In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other technology stocks.
Technology stocks have faced heightened volatility in 2025, with market sentiment swinging sharply in response to President Donald Trump’s aggressive trade policies. On April 3, tech shares endured their worst day since the COVID-19 pandemic as Trump announced sweeping tariffs on all imported goods, including a 34% duty on Chinese imports, exacerbating fears of a global trade war. An iPhone maker led the steep declines among the "Magnificent Seven," plummeting over 9% due to its reliance on Chinese manufacturing. Other tech giants also fell between 8% and 9%, while semiconductor and PC companies recorded double-digit losses. The tech-heavy NASDAQ tumbled 6%, marking its worst session over five years and deepening its year-to-date loss to more than 14%.
Despite the recent turmoil, broader optimism about technology and growth stocks remains underpinned by longer-term trends. Notably, Ken Fisher of Fisher Asset Management has emphasized that while mega-cap tech firms often face headwinds, they tend to outperform during bullish cycles and reflect broader market confidence. He argues that 2024’s rally was more expansive than many recognize, with tech and communication services stocks leading growth across the board. While tech stocks often decline more in bearish periods, their historical track record of resilience and growth during recoveries continues to make them attractive for long-term investors. This underscores why, even amid significant volatility, tech stocks retain strategic value for portfolios, particularly when the market regains momentum.
Signs of a potential rebound appeared later in April, as major indexes recovered modestly on April 24, with tech shares helping lead the rally. Investors responded positively to reports that the U.S. and China had resumed trade talks, despite earlier denials from Beijing. Trump’s announcement that some tariffs might be rolled back helped ease immediate fears, although uncertainty remains high. Analysts noted that the recent tech selloff had left the market oversold, setting the stage for short-term gains. However, mixed earnings reports and rising costs across industries continue to fuel caution, reinforcing the unpredictable nature of trade policy’s impact on tech and broader equity markets.
Our Methodology
For this article, we scanned Fisher Asset Management’s Q4 2024 13F filings to identify billionaire Ken Fisher's technology stock picks with the highest upside potential. We compiled the tech equities with upside potential higher than 27% at the time of writing this article and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we 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 363.5% since May 2014, beating its benchmark by 208 percentage points ( see more details here ).
A technician operating a high-powered microscope to develop a novel integrated circuit.
Broadcom Inc. (NASDAQ: AVGO )
Number of Hedge Fund Holders as of Q4: 161
Fisher Asset Management’s Equity Stake: $5.54 Billion
Upside Potential as of April 30: 27.90%
Broadcom Inc. (NASDAQ:AVGO) is a leading American multinational technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Its diverse product portfolio supports critical industries such as data centers, networking, wireless, broadband, storage, industrial systems, and enterprise software. The company plays a vital role in enabling high-performance connectivity and computing, particularly in the rapidly growing artificial intelligence (AI) and cloud infrastructure sectors.
During the initial quarter of fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) announced unprecedented financial outcomes, achieving consolidated revenues totaling $14.9 billion—a remarkable rise of 25% compared to the previous year’s figures. This expansion can largely be attributed to heightened market demands for artificial intelligence-driven semiconductor products and infrastructure software. Specifically, AI-centric income surged by an impressive 77%, amounting to $4.1 billion, whereas earnings from infrastructure software increased by 47% to reach $6.7 billion. Additionally, adjusted EBITDA reached a peak at $10.1 billion, marking a substantial uptick of 41% over the same period last year. Furthermore, the firm declared free cash flows climbing to $6.0 billion—up 28% annually—which highlights their robust capacity for generating liquid assets. By closing out this quarter, Broadcom held onto $9.3 billion in cash reserves and distributed considerable funds back to investors via a dividend disbursement valued at $2.774 billion as per records dated December 31, 2024.
In the coming period, Broadcom Inc. (NASDAQ:AVGO) expects ongoing growth heading toward the second quarter of fiscal year 2025, fueled by significant investments from large-scale cloud service providers in artificial intelligence-centric data center facilities. The firm predicts that revenues will hold steady at roughly $14.9 billion during this next quarter, with adjusted EBITDA projected to comprise about 66% of total earnings. According to CEO Hock Tan, there remains strong demand for AI-specific processors and advanced networking technologies, underscoring Broadcom’s advantageous stance within the rapidly changing tech environment dominated by AI advancements.
Investor confidence in Broadcom Inc. (NASDAQ:AVGO) is on the rise, accompanied by growing institutional interest in the stock. By the end of Q4 2024, Fisher Asset Management owned around 24 million shares, which were appraised at more than $5.5 billion. Additionally, hedge fund participation in Broadcom has expanded; as per Insider Monkey’s data, 161 funds had holdings totaling over $22.2 billion by the close of the fourth quarter, compared to just 128 funds in Q3.
Mar Vista U.S. Quality Select Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter :
“We maintain a positive outlook on Broadcom Inc. Shares of (NASDAQ:AVGO) have faced downward pressure lately due to two main issues: first, uncertainties surrounding possible tariffs and their effect on worldwide economic expansion; second, doubts among investors about whether major cloud companies will see sufficient returns on big expenditures for artificial intelligence projects. These reservations were heightened after an obscure Chinese firm called DeepSeek showcased significant efficiencies with its development of a competing advanced language program at considerably less expense than anticipated. Such advancements raised worries that these tech giants might have invested excessively in AI-related infrastructures.
Broadcom holds a robust standing in the niche market for customized AI Application-Specific Integrated Circuits (ASICs) and demonstrates prudent financial management, exemplified by its recent purchase of VMware. This acquisition has surpassed expectations with enhanced revenue generation and improved profit margins. As a frontrunner in providing bespoke AI ASIC solutions, Broadcom continues to expand its clientele beyond its primary user, Alphabet. There is considerable interest among large-scale data center operators who seek to develop specialized ASICs due to their cost-effectiveness and superior performance compared to standard graphics processing units offered by companies such as NVIDIA.
Although we maintain optimism about Broadcom’s future potential, we reduced our stake earlier this quarter when prices were higher, reallocating funds towards what seemed like a better balance between risk and reward. Despite this adjustment, Broadcom continues to be a key component of our investment strategy due to its appealing level of security. Our belief is that the firm has strong capabilities for increasing inherent worth by approximately 20% within the medium term horizon."
Overall AVGO ranks 10th among billionaire Ken Fisher’s technology stock picks with huge upside potential. While we acknowledge the potential of 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. 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 .
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Disclosure: There are none to declare. This article was initially published here. Insider Monkey .
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