Broadcom (AVGO) in John Hancock Balanced Fund Q1 2025

Semiconductor Sector Faces AI Spending Slowdown

May 31, 2025

Summary

Investment rationale: Strong presence in semiconductor solutions with diversified applications.
Market positioning: A major supplier of semiconductor components for various industries, including AI.
Risks and challenges: Vulnerability to fluctuations in AI-related demand.
Recent performance: Stock declined due to fears of reduced AI investment.
Future outlook: Potential for recovery as AI and technology sectors stabilize.

Broadcom (AVGO, Financial) was another notable detractor in the John Hancock Balanced Fund's Q1 2025 commentary. The company's stock faced pressure amid concerns about a slowdown in AI spending, which impacted investor sentiment. Despite these short-term challenges, Broadcom's diversified portfolio and strong market position in the semiconductor industry provide a foundation for future growth.

"The largest individual relative detractors included Marvell Technology, Inc. and Broadcom, Inc., semiconductor companies whose shares fell sharply due to concerns about a potential slowdown in AI spending." — John Hancock Balanced Fund Q1 2025 Fund Letter

Read full letter at gurufocus John Hancock Balanced Fund 2025 Q1 page.

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