Why Broadcom (AVGO) Emerged as the Top Billionaire Pick for 2025: Key Drivers Unveiled
As we move deeper into 2025, Broadcom (AVGO) has solidified its position as the preferred stock among billionaire investors. This semiconductor and infrastructure software giant continues to attract heavyweight portfolios due to its strategic positioning in high-growth sectors like AI accelerators, cloud computing, and next-gen networking. The company’s recent breakthroughs in chiplet technology and its dominance in enterprise storage solutions have created multiple revenue moats. With its recurring revenue model from mission-critical software and aggressive M&A strategy in the AI ecosystem, AVGO offers both stability and explosive growth potential - a rare combination that aligns perfectly with sophisticated investors’ 2025 thematic bets on durable tech infrastructure plays.
Source: Getty Images
Also Read: Nvidia (NVDA) vs Broadcom (AVG): Is AI Stock Race Heating Up in 2025?
Broadcom Emerging as Top Tech Stock as Billionaires Buy In
An increase in macroeconomic concerns has weighed heavily on financial markets this year. As a result, Broadcom (AVGO) has certainly struggled to find its footing. The stock has plummeted more than 11% over the last 30 days. Moreover, a 1.12% fall on Thursday has shares trading at the $172 level.
Yet, there is still one unique distinction that has traders contemplating a potential run for AVGO. Indeed, Broadcom has emerged as the key stock favorite for billionaires, with Wall Street potential set to see the semiconductor stock skyrocket over the next 12 months.
Source: Investopedia
Also Read: Broadcom (AVGO) Outgains Top 10 as Analysts Say Its Now ‘Magnificent 8’
In Q1 of 2025, the first reported $14 billion in fiscal revenue, a 24% jump from last year. Moreover, it was far above the $325 million expectation, with AI revenue jumping 77% year over year. The stock has strong financials, with more than $6 billion in operating flow and free cash flow. That figures out to be around 40% of all of its revenue.
According to a recent Insider Monkey report, wealthy investors took notice. Data shows that 26 billionaires held stakes in Broadcom, with their positions being worth more than $14 billion. Moreover, 161 hedge funds invested in Q4 of last year, with their collective position worth more than $22 billion.
Currently, the stock has a median price target of $250, according to CNN data. That indicates a 45% upside from its value in April, while its high- and low-end projections still make it a strong investment. According to analysts, it has a $198 worst-case outlook, with its best-case performance sitting at $300. That gives the stock jpside of 15% and 74%, respectively, for 2025.
