Broadcom (NASDAQ:AVGO) Shares Down 4.2% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 4.2% during mid-day trading on Wednesday . The company traded as low as $334.42 and last traded at $339.89. Approximately 29,972,609 shares traded hands during mid-day trading, an increase of 26% from the average daily volume of 23,789,156 shares. The stock had previously closed at $354.61.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Mizuho raised its price target on AVGO to $480 and kept an Outperform rating, reflecting confidence in hyperscaler capex and Broadcom’s AI/ASIC positioning. Mizuho Raises Firm’s PT on Broadcom (AVGO) Stock
• Positive Sentiment: MarketBeat reports that three of Wall Street’s largest banks (including Goldman and BofA) put Broadcom on “top pick”/conviction lists with price targets implying material upside, citing margin strength and software/ASIC pricing power. Broadcom Earns ‘Top Pick’ Status From Wall Street’s Biggest Banks
• Positive Sentiment: Bernstein reiterated Outperform and downplayed competitive threats in AI ASICs, reinforcing that Broadcom’s execution and customer lock-in support growth. Bernstein Says AI Competition Fears Around Broadcom (AVGO) Are Overblown
• Positive Sentiment: Analysts are flagging an AI-driven supply crunch and upside from custom silicon demand, a setup that favors Broadcom’s differentiated ASIC offerings. Broadcom, Marvell In Focus As Semicondcutor Analyst Flags AI-Driven Supply Crunch
• Neutral Sentiment: Broadcom launched new Wi‑Fi products at CES 2026 — a product-cycle positive but unlikely to move near-term enterprise/AI revenue materially. Broadcom Inc. (AVGO) Launches new Wi-Fi Products at CES 2026
• Neutral Sentiment: Several bullish commentaries and long-term price forecasts (price-target increases, 2026–2030 models) support a constructive multi-year view but vary in timing and magnitude. Broadcom (NASDAQ: AVGO) Stock Price Prediction and Forecast 2026-2030
• Negative Sentiment: The earlier Dec. 11 earnings report included a margin warning that sparked a sell-off; investors remain sensitive to any signs of margin deterioration or softer software monetization, which could keep volatility elevated. Broadcom’s Margin Warning Spooked Wall Street

Analyst Ratings Changes

Several equities analysts recently weighed in on AVGO shares. Oppenheimer lifted their target price on Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a research report on Friday, December 12th. Weiss Ratings reissued a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. Robert W. Baird set a $420.00 price target on shares of Broadcom in a research report on Friday, December 12th. Rosenblatt Securities upped their price objective on Broadcom from $400.00 to $440.00 and gave the company a “buy” rating in a research report on Tuesday, December 9th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $475.00 target price (up previously from $400.00) on shares of Broadcom in a report on Friday, December 12th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $438.00.

Broadcom Stock Down 4.2%

The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76. The company has a market cap of $1.61 trillion, a P/E ratio of 71.41, a P/E/G ratio of 1.19 and a beta of 1.21. The business’s 50 day moving average is $359.57 and its 200 day moving average is $332.57.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the firm earned $1.42 earnings per share. The firm’s quarterly revenue was up 28.2% compared to the same quarter last year. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a dividend of $0.65 per share. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, December 22nd. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is presently 54.62%.

Insider Activity at Broadcom

In related news, CEO Hock E. Tan sold 130,000 shares of Broadcom stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the completion of the sale, the chief executive officer directly owned 595,638 shares in the company, valued at $194,189,900.76. This trade represents a 17.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Kirsten M. Spears sold 30,000 shares of Broadcom stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the sale, the chief financial officer owned 277,237 shares of the company’s stock, valued at $96,428,573.34. The trade was a 9.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 779,901 shares of company stock valued at $284,069,237. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several hedge funds have recently added to or reduced their stakes in AVGO. Sawyer & Company Inc boosted its holdings in Broadcom by 62.1% during the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 36 shares in the last quarter. Longfellow Investment Management Co. LLC purchased a new stake in shares of Broadcom during the second quarter worth $27,000. Legend Financial Advisors Inc. purchased a new stake in Broadcom during the 2nd quarter valued at about $28,000. Teachers Insurance & Annuity Association of America purchased a new stake in shares of Broadcom in the second quarter valued at approximately $28,000. Finally, LGT Financial Advisors LLC acquired a new stake in shares of Broadcom in the 2nd quarter worth $31,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

About Broadcom

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.