Broadcom (NASDAQ:AVGO) Trading 4.2% Higher – Here’s What Happened

08 May 2026, 17:17 by Doug Wharley · The Cerbat Gem

Broadcom Inc. (NASDAQ:AVGO – Get Free Report)’s share price shot up 4.2% during mid-day trading on Friday . The company traded as high as $435.00 and last traded at $430.00. 22,420,298 shares were traded during mid-day trading, a decline of 11% from the average session volume of 25,088,330 shares. The stock had previously closed at $412.56.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom’s OpenAI mega AI deal hits $18 billion wall
Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on AVGO. Wells Fargo & Company upgraded shares of Broadcom from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. Royal Bank Of Canada lowered their price objective on Broadcom from $370.00 to $340.00 and set a “sector perform” rating on the stock in a report on Monday, March 2nd. Citigroup increased their target price on Broadcom from $458.00 to $475.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Zacks Research raised Broadcom from a “hold” rating to a “strong-buy” rating in a research note on Thursday, April 2nd. Finally, Truist Financial increased their price objective on Broadcom from $510.00 to $545.00 and gave the company a “buy” rating in a research note on Thursday, March 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and a consensus price target of $435.30.

View Our Latest Research Report on Broadcom

Broadcom Trading Up 4.2%

The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.88 and a beta of 1.43. The company’s 50-day moving average is $352.89 and its 200-day moving average is $351.28.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter in the prior year, the company posted $1.60 EPS. The business’s revenue for the quarter was up 29.5% on a year-over-year basis. Research analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom’s dividend payout ratio is 50.78%.

Insiders Place Their Bets

In other news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares in the company, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares of the company’s stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC boosted its position in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC raised its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares during the period. SWAN Capital LLC lifted its stake in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 55 shares in the last quarter. JCIC Asset Management Inc. acquired a new position in Broadcom during the 3rd quarter worth about $31,000. Finally, Miller Global Investments LLC purchased a new position in Broadcom during the 4th quarter valued at about $31,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

(Get Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.