Prominent Investor Bought More Broadcom Inc. (AVGO) Stock

Well-known investor Stephanie Link reported on CNBC yesterday that she had recently increased the amount of Broadcom Inc. (AVGO) stock that she owns.

Link, the Head of Investment Solutions at Hightower Advisors, frequently appears on CNBC.

Why Link Is Bullish on AVGO Stock

The investor is pleased by the actions that Broadcom Inc. (AVGO) has taken to diversify its revenue sources.

Specifically, AI chips account for 30% of the firm's revenue, while software generates 40% of its sales, Link reported.

"That's a great combination," she said.

Additionally, the company just announced that it would buy back $10 billion of its own shares, she stated.

"That's not (a) huge buyback, but it's actually an endorsement that they feel good about their business," Link said.

Finally, the shares are still 14% below their highs, she noted.

More About Broadcom Inc. (AVGO) Stock

Analysts on average expect AVGO's earnings per share to climb to $6.63 this year from $4.87 in 2024. For 2026, the average estimate calls for EPS of $7.86.

In the last month, the shares have gained 30%, while they have fallen 1% in the last three months.

While we acknowledge the potential of AVGO, 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: None. This article is originally published at Insider Monkey.