Broadcom (NASDAQ:AVGO) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Broadcom (NASDAQ:AVGO) from a hold rating to a strong-buy rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently commented on AVGO. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on Broadcom and gave the company a “buy” rating in a research report on Friday, December 12th. Piper Sandler restated an “overweight” rating and issued a $430.00 price target (up from $375.00) on shares of Broadcom in a report on Friday, December 12th. Mizuho set a $480.00 price target on shares of Broadcom and gave the stock an “outperform” rating in a research note on Friday, January 9th. TD Cowen reiterated a “buy” rating on shares of Broadcom in a report on Friday, December 12th. Finally, Susquehanna reissued a “positive” rating and issued a $450.00 price objective (up from $400.00) on shares of Broadcom in a research report on Thursday, December 4th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $437.28.

Broadcom Trading Down 3.8%

Shares of AVGO opened at $308.05 on Tuesday. The stock has a market capitalization of $1.46 trillion, a PE ratio of 64.72, a P/E/G ratio of 1.03 and a beta of 1.21. The company’s fifty day moving average is $351.74 and its 200 day moving average is $338.39. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $414.61.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The business had revenue of $18.02 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the prior year, the business posted $1.42 earnings per share. The company’s quarterly revenue was up 28.2% compared to the same quarter last year. Sell-side analysts expect that Broadcom will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

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

Insider Buying and Selling 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 transaction of $42,382,600.00. Following the transaction, the chief executive officer directly owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This trade represents a 17.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Mark David Brazeal sold 38,281 shares of the company’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $327.65, for a total value of $12,542,769.65. Following the sale, the insider owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. This represents a 12.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 779,901 shares of company stock valued at $284,069,237 in the last ninety days. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently added to or reduced their stakes in AVGO. Assetmark Inc. grew its holdings in shares of Broadcom by 2.4% during the 2nd quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock worth $469,566,000 after purchasing an additional 39,466 shares during the period. Capital Counsel LLC NY acquired a new position in Broadcom in the second quarter valued at about $221,000. Waterloo Capital L.P. boosted its stake in Broadcom by 7.0% during the second quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock worth $13,331,000 after buying an additional 3,180 shares during the period. Providence First Trust Co boosted its stake in Broadcom by 1,099.3% during the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock worth $2,944,000 after buying an additional 8,179 shares during the period. Finally, RiverFront Investment Group LLC increased its position in shares of Broadcom by 107.6% during the second quarter. RiverFront Investment Group LLC now owns 16,524 shares of the semiconductor manufacturer’s stock valued at $4,555,000 after acquiring an additional 8,566 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Large Google AI capex boost lifts demand outlook for AI chips and infrastructure suppliers, benefiting Broadcom as a provider of networking, custom silicon and AI‑inference infrastructure. This was highlighted after Google’s earnings and guidance. Broadcom, Nvidia shares rise on surging Google capital expenditures for AI
• Positive Sentiment: An analyst raised their price target on Broadcom, reflecting stronger conviction in multi‑year AI and networking seculars; analyst upgrades/targets can support the stock and attract buyers. Why this analyst just raised their price target on Broadcom stock
• Positive Sentiment: Broadcom is being cited as a top compute/AI semiconductor play amid rising AI demand — a narrative that supports higher long‑term revenue and valuation expansion if the AI capex cycle persists. Broadcom (AVGO) Cited As Top Compute Stock Amid Strong AI Semiconductor Demand
• Positive Sentiment: Product news: Broadcom announced an enterprise Wi‑Fi 8 access point + switch solution positioned for AI workloads — expands addressable market in AI‑ready infrastructure and supports revenue diversification. Broadcom announces industry’s first enterprise Wi-Fi 8 access point and switch solution for the AI era
• Positive Sentiment: Several bullish research/commentary pieces (including projections of significant upside and inclusion on “top stocks” lists) keep the long‑term investor narrative constructive. These notes can underpin buying after pullbacks. Wall Street Projects 38% Upside To Broadcom Inc. (AVGO)
• Neutral Sentiment: Jim Cramer called Broadcom “a winner in this environment” but warned it may not be the best timing to buy — reinforces that the company has strong fundamentals while signaling some caution on short‑term entry points. Jim Cramer on Broadcom
• Neutral Sentiment: Analyst/market commentary asking whether the recent pullback is a buying opportunity — useful for timing decisions but not new company fundamentals. Is It Time To Reassess Broadcom (AVGO) After Its Recent Share Price Pullback?
• Negative Sentiment: Short‑term selling and a reported ~6% intraday plunge drove today’s downward move — articles questioning whether the AI trade is cracking reflect investor profit‑taking and volatility in high‑beta AI/semiconductor names. Broadcom stock plunges 6% today
• Negative Sentiment: Fresh headlines noting a larger than‑market daily decline and elevated intraday volume emphasize near‑term risk and may trigger momentum selling or options‑driven moves. Broadcom Inc. (AVGO) Declines More Than Market

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.