Here's What Lifted Broadcom (AVGO) in Q2

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 19.34% in the second quarter, compared to the Russell 1000 Growth Index’s 17.84% return.  Stock selection in the information technology and industrials sectors contributed to the relative performance of the fund in the quarter, while stock selection and an overweight in healthcare detracted. US equities delivered strong results in the second quarter despite early tariff worries in April. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was -0.11%, and its shares gained 82.65% of their value over the last 52 weeks. On August 29, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $297.39 per share, with a market capitalization of $1.4 trillion.

Janus Henderson Forty Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

"Broadcom Inc. (NASDAQ:AVGO), another top contributor in AI infrastructure, has benefited from hyperscalers’ interest in a second source behind NVIDIA’s merchant silicon. The semiconductor company leads in custom silicon development, offering lower cost and better efficiency for specific workloads that don't require maximum performance GPUs. The market also continues to evolve as custom silicon has gained share relative to merchant chips. Broadcom's leadership position makes it a clear beneficiary of this shift."

Broadcom Inc. (NASDAQ:AVGO) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the second quarter, compared to 158 in the previous quarter.  In the fiscal second quarter of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $15 billion, up 20% year-over-year. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Broadcom Inc. (NASDAQ:AVGO) and shared the list of top stocks to buy from Goldman Sachs tech stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.