Broadcom (AVGO) Surged on Exceptional Demand for AI Chips

Columbia Threadneedle Investments, an investment management company, released its “Columbia Global Technology Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their upward journey in the third quarter, driven by strong earnings growth, continued enthusiasm around artificial intelligence (AI), and easing trade tensions. The composite returned 12.06% in the quarter, compared to the S&P Global 1200 Information Technology Index’s 12.82% return.  Positive stock selection drove the relative performance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its third-quarter 2025 investor letter, Columbia Global Technology Growth Fund highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) is a leading technology company that designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 10.18%, and its shares gained 119.30% of their value over the last 52 weeks. On October 31, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $369.63 per share, with a market capitalization of $1.746 trillion.

Columbia Global Technology Growth Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:

"Shares of Broadcom Inc. (NASDAQ:AVGO) kept pace with fellow semiconductor infrastructure leader NVIDIA, with strong results driven by exceptional demand for AI accelerator chips and networking hardware. AI semiconductor chips are now a majority of the company’s semiconductor revenue, and the company is on pace for 11 consecutive quarters of AI revenue growth. Notably, the company announced a sizable $10 billion custom AI chip order during the quarter, set for delivery starting in 2026, and reported backlog exceeded $100 billion, anchored by orders for AI chips."

Broadcom Inc. (NASDAQ:AVGO) is in the 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 third quarter of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $16 billion, up 22% 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 AI and non-tech stocks to watch amid latest earnings seasons. Polen Focus Growth Strategy initiated a position in Broadcom Inc. (NASDAQ:AVGO) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 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.