TipRanks allows investors to keep track of the investment activities of financial experts, such as hedge fund managers. By compiling the data from Form 13-Fs released by 483 hedge funds, the TipRanks Hedge Fund Confidence Signal indicates how bullish these managers are about a stock. Today, using the TipRanks Stock Screener tool, we have focused on two such stocks: Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL). Both stocks carry a “Strong Buy” rating and were bought by hedge funds in the last quarter.
Let’s delve deeper into these two stocks.
Broadcom
AVGO provides semiconductor and infrastructure software solutions for wired and wireless communications. The booming artificial intelligence (AI) market and the VMware acquisition, which was closed in November 2023, have the potential to support the company’s growth in the near term.
It is worth highlighting that AVGO recently reported better-than-expected results for the first quarter, benefitting from higher demand for its AI offerings. Following the release of Q1 earnings on March 7, Broadcom stock received 16 Buy and four Hold ratings from Wall Street analysts.
As per TipRanks’ database, hedge funds bought 300,500 shares of Broadcom last quarter. Several hedge fund managers increased their holdings in the stock, including Fisher Asset Management’s Ken Fisher and Joel Greenblatt of Gotham Asset Management, among others. Also, the Hedge Fund Confidence Signal is currently Very Positive.
What Is the Price Target for AVGO?
Wall Street is bullish about Broadcom. It has received 17 Buy and four Hold recommendations, translating into a Strong Buy consensus rating. The analysts’ average price target on AVGO stock of $1,552.06 suggests an upside potential of 23%. Shares of the company have gained 106.2% in the past year.
Supporting the bull case, the stock has a Smart Score of “Perfect 10” on TipRanks. Note that shares with this Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin.
Marvell Technology
Marvell is a semiconductor company that develops networking, storage, and connectivity solutions for a wide range of applications. Positive momentum in the company’s Data Center segment and efforts to gain market share with the development of new chips bode well for long-term growth.
Strong AI demand drove the company’s fourth-quarter results. Following the release of better-than-expected results on March 7, 24 analysts gave a Buy rating, while one gave a Hold rating on MRVL stock.
Interestingly, the stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. The tool shows that hedge funds bought 2.4 million shares of this company in the last quarter. Our data shows that both Ken Fisher and Joel Greenblatt were among the hedge fund managers who increased their exposure to MRVL stock.
What Is the Forecast for MRVL Stock?
It has received 26 Buy and one Hold recommendations for a Strong Buy consensus rating. Following a rally of 76.5% in its share price over the past year, analysts’ average price target on MRVL stock of $89.60 implies 35.59% upside potential from current levels.
On a positive note, the stock has a Smart Score of “Perfect 10” on TipRanks.
Concluding Thoughts
The impressive track record of hedge fund managers may encourage investors to adopt their portfolio allocation strategy. For more ideas on Top Expert Picks, investors can visit the TipRanks Expert Center and make informed investment decisions.
Find out which stock the biggest hedge fund managers are buying right now.