Broadcom AVGO surges due to exceptional demand for AI chips

. 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 for artificial intelligence (AI), and easing trade tensions. The Composite Index returned 12.06% for the quarter, while the S&P Global 1200 Information Technology Index returned 12.82%. Positive stock selection drove the fund's relative performance in the quarter. Additionally, you can view the fund's top 5 holdings for the fund's best picks for 2025.

In its third-quarter 2025 investor letter, the Columbia Global Technology Growth Fund highlighted stocks like Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) is a leading technology company that designs and develops various semiconductor and infrastructure software solutions. Broadcom Inc. (NASDAQ:AVGO) has a one-month return of 10.18% and its stock price has increased by 119.30% over the past 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 has given Broadcom Inc. a buy rating in its third quarter 2025 investor letter. AVGO Inc. AVGO Inc. The following report was given about AVGO Inc. (NASDAQ:AVGO):

"Shares of Broadcom Inc. (NASDAQ:AVGO) achieved strong results, keeping pace with semiconductor infrastructure leader NVIDIA, driven by exceptional demand for AI accelerator chips and networking hardware. AI semiconductor chips now represent a significant portion of the company's semiconductor revenue, and the company has been on pace for 11 consecutive quarters of AI revenue growth. Notably, the company announced a large custom AI chip order worth $10 billion during the quarter, with deliveries beginning in 2026, and reported a backlog of over $100 billion in AI chip orders."

Broadcom Inc. (NASDAQ:AVGO) ranked 12th on our list of the 30 most popular stocks among hedge funds. According to our database, Broadcom Inc. was the most popular at the end of the second quarter. Broadcom Inc. Broadcom Inc. (NASDAQ:AVGO) had 156 hedge funds in its portfolio, compared to 158 in the previous quarter. In its third quarter of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $16 billion, up 22% from the previous year. While we acknowledge the investment prospects in Broadcom Inc. (NASDAQ:AVGO), we believe certain AI stocks have greater upside potential and less downside risk. If you're looking for a highly undervalued AI stock that could also significantly benefit from Trump-era tariffs and the onshoring trend, check out our free report on the best short-term AI stocks.