Bristol Gate US Equity Strategy: NVDA’s Demand Today is Broadcom’s (AVGO) Opportunity Tomorrow

2 hours ago 2

Soumya Eswaran

Wed, December 31, 2025 astatine 7:08 AM CST 3 min read

Bristol Gate Capital Partners, an concern absorption company, published its Q3 2025 capitalist missive for the “US Equity Strategy”. A transcript of the missive tin beryllium downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but inactive surpassed the scale successful dividend growth. The underperformance was owed to a deficiency of important vulnerability to the AI/TMT assemblage oregon the Value sector, which provides advantages stemming from the Federal Reserve's complaint cut. The portfolio returned 15% dividend maturation implicit the trailing 12 months, driven by the beardown underlying fundamentals. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

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In its third-quarter 2025 capitalist letter, Bristol Gate US Equity Strategy highlighted stocks specified arsenic Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) is simply a starring exertion institution that designs and develops assorted semiconductor and infrastructure bundle solutions. The one-month instrumentality of Broadcom Inc. (NASDAQ:AVGO) was -8.31%, and its shares gained 50.90% of their worth implicit the past 52 weeks. On December 30, 2025, Broadcom Inc. (NASDAQ:AVGO) banal closed astatine $349.85 per share, with a marketplace capitalization of $1.659 trillion.

Bristol Gate US Equity Strategy stated the pursuing regarding Broadcom Inc. (NASDAQ:AVGO) successful its 3rd 4th 2025 capitalist letter:

"Broadcom Inc. (NASDAQ:AVGO) reported its 3rd 4th results connected September 4, which bushed expert expectations for some gross and net per share. However, the item of the 4th was the summation of a 4th important lawsuit for its XPU (custom AI accelerator) products, who has placed implicit $10 cardinal successful orders to beryllium shipped successful Q326. The operation of continued maturation from the existing 3 customers and the summation of this 4th large lawsuit volition thrust a worldly betterment successful Broadcom's AI gross maturation successful fiscal 2026 compared to the erstwhile outlook. Management present expects 2026 AI gross maturation to transcend fiscal 2025's 50-60% rate. In summation to the 4 customers for which it has secured orders, the institution is moving connected projects with 3 different hyperscalers. Our “NVDA’s request contiguous is AVGO’s accidental tomorrow” thesis continues to play retired successful the hyperscaler marketplace wherever request for customized AI accelerators continues to turn arsenic each of them journeys towards compute self-sufficiency. The company’s wide backlog present stands astatine $110B, with implicit 50% from semiconductors."

A Strong Buy Pick Backed by Robust Cash Flow and Dividend Growth

Broadcom Inc. (NASDAQ:AVGO) is successful the 12th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 183 hedge money portfolios held Broadcom Inc. (NASDAQ:AVGO) astatine the extremity of the 3rd quarter, which was 156 successful the erstwhile quarter. In the fiscal 3rd 4th of 2025, Broadcom Inc. (NASDAQ:AVGO) reported record revenue of $16 billion, up 22% year-over-year. While we admit the imaginable of Broadcom Inc. (NASDAQ:AVGO) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.