Do You Have Conviction in the Long-Term Growth of Broadcom (AVGO)?

Group 1: Fund Performance - Baron Technology Fund returned 5.89% in Q3 2025, underperforming the MSCI ACWI Information Technology Index's 12.76%, Invesco QQQ Trust's 8.94%, and the S&P 500 index's 8.12% [1] - The fund's top five holdings reflect its best picks in 2025 [1] Group 2: Broadcom Inc. Overview - Broadcom Inc. (NASDAQ:AVGO) is a leading technology company with approximately 60% of its revenue from semiconductors and 40% from software [3] - The company has a market capitalization of $1.65 trillion, with shares closing at $349.43 on November 7, 2025 [2] Group 3: Broadcom Inc. Financial Performance - In the July quarter, Broadcom reported nearly $16 billion in total revenue, a 22% increase, with AI revenue at $5.2 billion, up 63%, and software revenue at $6.8 billion, up 17% [3] - Broadcom maintains strong profitability with EBITDA margins over 67% and free cash flow margins at 44% [3] Group 4: Strategic Positioning and Future Outlook - Broadcom is positioned at the intersection of high-performance AI compute and networking infrastructure, extending its leadership in networking silicon into the AI era [3] - The company is on track for volume production with multiple key customers, including Google, Meta, ByteDance, and OpenAI, with significant orders expected [3] - Beyond AI, Broadcom is advancing VMware integration, and its non-AI semiconductor businesses are showing signs of recovery [3]