Broadcom (NASDAQ:AVGO) Shares Down 1.1% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded down 1.1% during trading on Wednesday . The company traded as low as $324.20 and last traded at $328.80. 31,603,463 shares were traded during trading, an increase of 22% from the average session volume of 25,963,641 shares. The stock had previously closed at $332.60.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan lists Broadcom among its favorite chip stocks heading into earnings, reinforcing demand expectations for Broadcom’s AI and custom silicon portfolio. Nvidia, Broadcom, Micron among JPMorgan’s favorite chip stocks going into earnings
• Positive Sentiment: Citi names Broadcom a top pick into earnings, another institutional endorsement supporting expectations for continued AI-driven revenue growth. Nvidia, Broadcom, NXP, Analog Devices are Citi’s top picks going into earnings
• Positive Sentiment: Zacks argues growth investors should buy AVGO, citing above‑average financial growth and AI tailwinds that support multi‑year revenue momentum. Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now
• Positive Sentiment: MarketBeat highlights TSMC’s strong AI-accelerator guidance and Meta’s “Meta Compute” expansion as indirect catalysts for Broadcom’s custom-chip and networking businesses. Why Taiwan Semiconductor and Meta Could Be the Hidden Bull Case for Broadcom
• Neutral Sentiment: Coverage examines whether Broadcom remains reasonably priced after strong multi‑year gains; valuation debate is central—good growth but a rich multiple. Is Broadcom (AVGO) Still Reasonably Priced After A 7x Run In Five Years
• Neutral Sentiment: Articles synthesize broad analyst interest (many buy/outperform ratings and elevated price targets) — supportive for sentiment but already priced into the shares. Broadcom Inc. (AVGO) Is Considered a Good Investment by Brokers: Is That True?
• Negative Sentiment: RBC initiates AVGO at Sector Perform, explicitly flagging margin risk and valuation as reasons for caution despite AI upside — a formal counterpoint to recent bullish calls. RBC initiates Broadcom (AVGO) at sector perform, flags margin and valuation risks despite AI upside
• Negative Sentiment: QuiverQuant summary highlights social‑media debate on margins, geopolitical/cybersecurity risks and heavy insider sales — these narratives can amplify short‑term volatility. Broadcom Inc. Stock (AVGO) Opinions on AI Deals and Geopolitical Risks

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Morgan Stanley increased their price objective on Broadcom from $443.00 to $462.00 and gave the company an “overweight” rating in a report on Friday, December 12th. Truist Financial upped their price objective on shares of Broadcom from $500.00 to $510.00 and gave the company a “buy” rating in a report on Friday, December 19th. Sanford C. Bernstein reissued an “outperform” rating and issued a $475.00 price objective (up from $400.00) on shares of Broadcom in a research report on Friday, December 12th. Evercore ISI lifted their target price on shares of Broadcom from $342.00 to $403.00 and gave the stock an “outperform” rating in a report on Wednesday, October 15th. Finally, Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $438.61.

Broadcom Trading Down 1.1%

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The stock has a market capitalization of $1.56 trillion, a P/E ratio of 69.08, a price-to-earnings-growth ratio of 1.17 and a beta of 1.21. The firm’s fifty day simple moving average is $358.46 and its 200 day simple moving average is $335.10.

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

Broadcom Increases Dividend

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

Insider Activity at Broadcom

In related news, Director Harry L. You bought 1,000 shares of the company’s stock in a transaction that occurred on Thursday, December 18th. The shares were bought at an average price of $325.13 per share, for a total transaction of $325,130.00. Following the transaction, the director directly owned 36,602 shares of the company’s stock, valued at approximately $11,900,408.26. The trade was a 2.81% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charlie B. Kawwas sold 1,928 shares of the firm’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $327.80, for a total value of $631,998.40. Following the completion of the sale, the insider owned 23,582 shares of the company’s stock, valued at approximately $7,730,179.60. This represents a 7.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 779,901 shares of company stock valued at $284,069,237. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new stake in Broadcom in the 2nd quarter valued at about $18,579,549,000. Vanguard Group Inc. raised its stake in shares of Broadcom by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after purchasing an additional 6,222,802 shares during the period. Edgewood Management LLC purchased a new position in shares of Broadcom in the 2nd quarter worth about $1,571,438,000. Arrowstreet Capital Limited Partnership increased its holdings in Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock worth $1,858,789,000 after buying an additional 4,694,313 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its holdings in Broadcom by 115.5% during the second quarter. Massachusetts Financial Services Co. MA now owns 6,017,340 shares of the semiconductor manufacturer’s stock worth $1,658,680,000 after buying an additional 3,224,739 shares during the last quarter. 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.