Top Funds Bet Big on Broadcom’s AI Upside

Broadcom NASDAQ: AVGO is one of just 10 stocks globally with a market cap over $1 trillion as of May 21. This makes it one of the most closely watched stocks in the market. Retail investors and famous money managers have come to know this company well. It has played a key role in the AI infrastructure buildout, which has been driving the market higher for some time.

Many big investors bought Broadcom in large amounts in Q1. This became clear when they released their 13F filings. That makes a good deal of sense, considering that Broadcom shares fell by more than 27% in Q1. The analysis below will detail some of the highest-profile investors who bought Broadcom in spades. It is important to note that the data on these purchases only extends to March 31. Thus, these investors could have sold or bought more Broadcom shares since. Still, knowing how investors felt about Broadcom and similar companies in Q1 can help retail investors understand how to view the stock going forward.

AI Bubble Bear Grantham Owned Nearly 14x More AVGO Than NVIDIA in Q1

A huge purchaser of Broadcom in Q1 was investor Jeremy Grantham. Grantham co-founded Grantham, May and Van Otterloo (GMO) and is the company’s long-term investment strategist. Grantham is often considered a contrarian investor, pushing back against overzealous market trends. Many consider him to have predicted the dot-com bubble around two years before it popped. Despite Grantham’s claims that AI investing is a bubble, Grantham’s GMO bought over 1.5 million shares of Broadcom in Q1. Additionally, many of the firm’s biggest holdings are among the Magnificent Seven stocks that have invested tens of billions in AI infrastructure.

Still, the big decline in Broadcom shares in Q1 could back up Grantham’s claims that the AI bubble would deflate. As of the May 21 close, Broadcom is trading only around 6% below its 2025 high. Assuming the stock stays near this level through the end of Q2, seeing GMO greatly reduce its Broadcom holdings in its Q2 13F would be a logical next step. This would indicate he actually sees Broadcom as part of the AI bubble and simply took advantage of it temporarily deflating in Q1. Interestingly, Grantham has just a $21 million position in NVIDIA NASDAQ: NVDA, versus $291 million in Broadcom. Sure, NVIDIA only fell 19% in Q1, but this positioning indicates Grantham sees Broadcom as a relatively better value.

Renaissance, Two Sigma, and Dalio Buy Over 5 Million Broadcom Shares Combined

Another massive high-profile Broadcom buyer in Q1 was Renaissance Technologies, an investment firm many regard as the most successful hedge fund of all time. Renaissance purchased over 2.4 million shares of Broadcom in Q1, massively increasing the firm’s stake in the company. Renaissance is notoriously tight-lipped about its thoughts on the market, making it difficult to assert its thinking. However, depending on the data points looked at, one could argue that Renaissance may or may not still see value in Broadcom shares.

Two Sigma Advisors and Bridgewater Associates are other notable investment companies that bought significant shares of Broadcom in Q1. They bought around 2.5 million and 280,000 shares, respectively. Two Sigma has become known as one of the pioneers of quantitative investing, relying largely on complex math and non-traditional data to invest. For many, Bridgewater Associates founder Ray Dalio needs no introduction. He is a prolific author, investing thought leader, and has built what was, at one time, the largest hedge fund in the world.

At the end of Q1, Two Sigma held 3.9 million shares of Broadcom. The company hasn’t had even close to this big of a position since Q3 2024, when it held 3.6 million shares. Notably, Broadcom’s average closing price during that period was just $159. In Q1, that figure was $211. The company held more shares in Q1, when the average closing price was about 33% higher. This suggests it thinks Broadcom’s intrinsic value has increased very significantly. However, whether it sees value in prices near $230 or higher is more questionable.

Broadcom’s Big Gain in Q2 Could Reveal These Investors’ True Thoughts

Since Broadcom’s shares now only trade marginally lower than their 2025 peak, these investors’ next 13F filings could reveal at what price they are comfortable holding shares.

If Broadcom remains near the $230 mark through the rest of Q2, continuing to hold their shares could indicate these investors see potential for the stock to test all-time highs near $250.

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