Broadcom (NASDAQ:AVGO) Shares Down 1.1% – What’s Next?
by Scott Moore · The Cerbat GemBroadcom Inc. (NASDAQ:AVGO – Get Free Report)’s stock price was down 1.1% on Wednesday . The stock traded as low as $359.25 and last traded at $364.38. 24,500,864 shares traded hands during trading, a decline of 3% from the average session volume of 25,219,350 shares. The stock had previously closed at $368.56.
More Broadcom News
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Piper Sandler upgraded Broadcom to “strong buy,” reinforcing confidence in the company’s AI semiconductor growth and long-term earnings outlook.
- Positive Sentiment: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. The forecast highlights the expected expansion of custom accelerators, networking and connectivity products used by hyperscale data centers. Broadcom Forecasts $230 Billion in AI Semiconductor Revenue
- Positive Sentiment: Recent coverage emphasizes that Broadcom’s custom chips can deliver attractive performance and cost advantages for major AI customers, including OpenAI, Anthropic, Alphabet and Meta Platforms. Strong demand could allow Broadcom to gain further ground on Nvidia in AI infrastructure. The Better Nvidia Killer: Broadcom or AMD?
- Positive Sentiment: Analysts and investors are increasingly viewing Broadcom as a diversified way to participate in AI spending because it supplies technology to multiple competing hyperscalers rather than relying on a single AI-model winner. The Case for Broadcom Over Nvidia Strengthens in September
- Neutral Sentiment: Broadcom’s recent earnings beat expectations, with revenue up sharply year over year, but the stock remains below its recent high and below its 50-day and 200-day moving averages. This suggests strong fundamentals are competing with technical and valuation pressure.
- Negative Sentiment: Rising Treasury yields and compressing technology-sector multiples could limit upside for Broadcom’s shares despite improving earnings expectations. At roughly 46 times earnings, investors are already pricing in substantial AI growth.
- Negative Sentiment: OpenAI’s disclosed partnership with Samsung and reported Google-related chip risks raise questions about whether some customers could diversify away from Broadcom for custom-chip projects. OpenAI Picked Broadcom for Its First Custom AI Chip
Wall Street Analysts Forecast Growth
Several research analysts have commented on AVGO shares. Cantor Fitzgerald lifted their price target on Broadcom from $525.00 to $600.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. DA Davidson set a $350.00 price target on shares of Broadcom and gave the company a “neutral” rating in a report on Friday, September 4th. Oppenheimer restated an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Truist Financial dropped their price objective on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. Finally, Royal Bank Of Canada assumed coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $505.97.
Check Out Our Latest Research Report on AVGO
Broadcom Stock Up 1.1%
The business’s fifty day moving average price is $383.00 and its 200 day moving average price is $378.43. The company has a market capitalization of $1.74 trillion, a P/E ratio of 46.66 and a beta of 1.44. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.
Broadcom (NASDAQ:AVGO – Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the previous year, the firm posted $1.69 earnings per share. The firm’s revenue for the quarter was up 85.5% on a year-over-year basis. As a group, equities research analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.
Broadcom Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is presently 33.21%.
Insider Buying and Selling
In related news, Director Gayla Delly sold 1,890 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last 90 days. 1.90% of the stock is owned by company insiders.
Institutional Investors Weigh In On Broadcom
Several large investors have recently made changes to their positions in AVGO. Cornerstone Advisors LLC bought a new stake in shares of Broadcom in the 2nd quarter valued at about $92,522,000. Bank of America Corp DE grew its position in Broadcom by 1.5% during the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock worth $18,179,719,000 after acquiring an additional 894,564 shares during the last quarter. Clear Harbor Asset Management LLC purchased a new position in Broadcom in the 2nd quarter worth approximately $3,302,000. Bartlett & CO. Wealth Management LLC increased its stake in Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer’s stock worth $34,061,000 after purchasing an additional 62,050 shares during the period. Finally, First Bank & Trust lifted its position in Broadcom by 17.2% in the second quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer’s stock valued at $3,968,000 after purchasing an additional 1,545 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.
About Broadcom
Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.
The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.