Broadcom (AVGO): Brasada Capital Management's Best Year-To-Date Performer

Brasada Capital Management, an investment management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. In the letter, the firm noted that the market entered the fourth quarter with equities near all-time highs and monetary policy easing. The firm also believes that this momentum could persist even though there are indications that a capital expenditure bubble exists. Further, the firm continues to invest selectively in companies with solid moats and cash flows, while steering clear of balance-sheet risks. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brasada Capital Management 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 18.66%, and its shares gained 80.77% of their value over the last 52 weeks. On December 11, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $406.37 per share, with a market capitalization of $1.919 trillion.

Brasada Capital Management stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:

"We added Broadcom Inc. (NASDAQ:AVGO) to Equity Income in April; it has been our best year-to-date performer. A mega cap semiconductor conglomerate, Broadcom sells primarily design and critical components for leading-edge chips as well as data-center infrastructure software. We believe the real fight in AI is between Nvidia and Broadcom. With a fresh inflection underway, Broadcom is positioned to be the #2—if not #1—winner over the next decade.

Led by arguably one of the greatest CEOs of all-time in Hock Tan, Broadcom excels at game changing M&A and has consistently executed for shareholders producing one of the most successful stocks in the past 2 decades. It competes with NVIDIA in AI and networking chips, while its sticky, non-cyclical software (92% gross margin) buffers cyclicality in semiconductors. Whereas NVIDIA delivers general-purpose “glove-fits-all” compute stacks, Broadcom dominates custom AI chips (ASICs) with Google as its anchor customer, designing application-specific computing chips for Google’s many applications (Search, YouTube, Cloud). Meta and OpenAI have also signed multi billion-dollar deals to make their own chips. Custom-AI revenue rose 225% in 2024 to $8.6B and is expected to grow ~170%+ this year to $24B..." (Click here to read the full text)

Broadcom Inc. (NASDAQ:AVGO) is in the 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 183 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the third quarter, which was 156 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 best nanotechnology stocks to buy. 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.