Macquarie Asset Management released its Q2 2025 investor letter, reporting a 10.94% surge in the US large-cap equity market with the S&P 500® Index. The Macquarie Core Equity Fund’s Institutional Class returned 11.94%, outperforming the benchmark with 80% of the performance driven by sector selection.

In its Q2 2025 letter, Macquarie Core Equity Fund highlighted Broadcom Inc. (NASDAQ:AVGO), with a one-month return of 17.47% and a 101.84% gain in the last 52 weeks. On September 18, 2025, Broadcom Inc. closed at $345.35 per share, boasting a market capitalization of $1.63 trillion.

According to the Macquarie Core Equity Fund’s Q2 2025 investor letter, Broadcom Inc. (NASDAQ:AVGO) had an exceptional run of over 65% due to renewed AI optimism and broadening its customer base for custom AI silicon. Their slight underweight of the security was consequential given the strong return.

Broadcom Inc. (NASDAQ:AVGO) ranks 12th on the list of 30 Most Popular Stocks Among Hedge Funds. With 156 hedge fund portfolios holding AVGO at the end of Q2, the company reported record revenue of $16 billion in the fiscal Q3 of 2025, up 22% year-over-year. While AVGO shows investment potential, some AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Here’s Why Broadcom (AVGO) is on the Detractors List of Macquarie Core Equity Fund