American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the "American Century Investments Focused Dynamic Growth Fund". The letter can be downloaded here. U.S. stocks advanced sharply with double-digit quarterly gains largely due to robust earnings, resilient economic data, and momentum in AI-related stocks. However, there was a slight pullback in June as momentum waned and investors anticipated potential interest rate hikes by the Federal Reserve. Growth and AI stocks outperformed value stocks, while large-cap companies generally surpassed small- and mid-cap stocks. Underperformance was noted in healthcare and communication services, while industrials, particularly in aerospace and defense, contributed positively to performance. The fund's investor class returned 16.38%, slightly below the Russell 1000 Growth Index's 16.74%. The investment approach focuses on bottom-up financial ******* ysis to identify large-cap companies with long-term earnings growth potential, while aiming to mitigate non-financial risks. Please review the Fund's top five holdings to gain insights into its key selections for 2026.
In its second-quarter 2026 investor letter, American Century Investments Focused Dynamic Growth Fund highlighted Broadcom Inc. (NASDAQ:AVGO) as a newly added position. Broadcom Inc. (NASDAQ:AVGO) is a leading American company that designs and develops various semiconductor devices and infrastructure software solutions. On September 08, 2026, Broadcom Inc. (NASDAQ:AVGO) closed at $368.56 per share, reflecting a market capitalization of $1.75 trillion. Over the past month, Broadcom Inc. (NASDAQ:AVGO) declined 13.20%, while its shares lost 2.29% over the past 52 weeks.
American Century Investments Focused Dynamic Growth Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q2 2026 investor letter:
"Broadcom Inc. (NASDAQ:AVGO). We initiated a position in this technology conglomerate because of its leading market position in its custom ASIC and networking chips businesses. While its software businesses are mature, we believe rapid artificial intelligence-driven growth in semiconductors has been very appealing."
Broadcom Inc. (NASDAQ:AVGO) ranks 8 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 170 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the second quarter, compared to 173 in the previous quarter. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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