It has been a sluggish start to the year for the US stock market amid rising geopolitical tensions. Yet, with mega-cap tech companies seeing their share take a major hit, one company has emerged for an interesting reason. Indeed, Broadcom (AVGO) has emerged as a favorite stock among billionaires for 2025, but why?

The semiconductor stock has long been viewed as a high-potential buy on Wall Street. However, that perception took a significant hit with the uncertainty facing the global market. So, just what makes the company so attractive to the ultra-wealthy, and could it indicate an incoming surge for its shares in the near term?

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Broadcom Emerging as Top Tech Stock as Billionaires Buy In

An increase in macroeconomic concerns has weighed heavily on financial markets this year. As a result, Broadcom (AVGO) has certainly struggled to find its footing. The stock has plummeted more than 11% over the last 30 days. Moreover, a 1.12% fall on Thursday has shares trading at the $172 level.

Yet, there is still one unique distinction that has traders contemplating a potential run for AVGO. Indeed, Broadcom has emerged as the key stock favorite for billionaires, with Wall Street potential set to see the semiconductor stock skyrocket over the next 12 months.

Also Read: Broadcom (AVGO) Outgains Top 10 as Analysts Say Its Now ‘Magnificent 8’

In Q1 of 2025, the first reported $14 billion in fiscal revenue, a 24% jump from last year. Moreover, it was far above the $325 million expectation, with AI revenue jumping 77% year over year. The stock has strong financials, with more than $6 billion in operating flow and free cash flow. That figures out to be around 40% of all of its revenue.

According to a recent Insider Monkey report, wealthy investors took notice. Data shows that 26 billionaires held stakes in Broadcom, with their positions being worth more than $14 billion. Moreover, 161 hedge funds invested in Q4 of last year, with their collective position worth more than $22 billion.

Currently, the stock has a median price target of $250, according to CNN data. That indicates a 45% upside from its value in April, while its high- and low-end projections still make it a strong investment. According to analysts, it has a $198 worst-case outlook, with its best-case performance sitting at $300. That gives the stock jpside of 15% and 74%, respectively, for 2025.