Is Broadcom (AVGO) a Beneficiary Of Generative Artificial Intelligence (AI)?
Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index continued its recent all-time high, beginning the year’s first quarter at a robust 10.6%. This quarter’s results followed a common pattern to much of 2023: large outperforming small and growth outperforming value. Energy was the best-performing sector while real estate investment trusts (REITs) were the only sector with negative returns. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Carillon Eagle Growth & Income Fund highlighted stocks like Broadcom Inc. (NASDAQ:AVGO) in the first quarter 2024 investor letter. Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor devices. Broadcom Inc.’s (NASDAQ:AVGO) one-month return was 4.18%, and its shares gained 68.92% of their value over the last 52 weeks. On June 10, 2024, Broadcom Inc. (NASDAQ:AVGO) stock closed at $1,440.47 per share with a market capitalization of $661.758 billion
Carillon Eagle Growth & Income Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its first quarter 2024 investor letter:
Broadcom Inc. (NASDAQ:AVGO) continues to trade higher as a beneficiary of generative artificial intelligence (AI). Management recently highlighted that AI-related silicon now comprises a significant percentage of all semiconductor solution sales. The company also is focused on integrating its acquisition of VMware.
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 15th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 115 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Broadcom Inc. (NASDAQ:AVGO) and shared the list of AI stocks analysts are upgrading. Baron Durable Advantage Fund saw potential in Broadcom Inc. (NASDAQ:AVGO) and added to its portfolio in Q1 2024. In addition, please check out our hedge fund investor letters Q1 2024 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.
