Broadcom (NASDAQ:AVGO) Shares Down 5.1% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was down 5.1% during mid-day trading on Wednesday . The company traded as low as $371.17 and last traded at $372.10. Approximately 37,454,200 shares traded hands during trading, an increase of 45% from the average daily volume of 25,888,504 shares. The stock had previously closed at $392.16.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Several articles argue the selloff is overdone and highlight Broadcom’s strong AI demand, with Q2 revenue up 48%, AI semiconductor revenue up 143%, and more than $30 billion in AI bookings, suggesting long-term growth remains intact.
• Positive Sentiment: Broadcom announced a new AI infrastructure partnership with Apollo Global Management and Blackstone, which could expand financing for AI data center buildout and reinforce Broadcom’s role in the AI ecosystem.
• Positive Sentiment: Wall Street commentary remains constructive, with multiple pieces pointing to EPS growth above 50% over the next five years and additional analyst support, including a JPMorgan target reset and other buy-rated commentary.
• Neutral Sentiment: Broadcom’s Private Cloud Outlook 2026 suggests enterprise AI inference is shifting toward private cloud deployments, which may support future demand but is more of a long-term theme than an immediate catalyst.
• Negative Sentiment: Semiconductor stocks are under pressure broadly, and AVGO has been caught up in a rotation out of high-growth tech, with articles noting weakness across the chip sector and increased bearish sentiment after earnings.
• Negative Sentiment: Some investors are focusing on Broadcom’s slightly soft AI revenue guidance and warning signs around the AI trade, which has fueled concerns that the stock’s near-term valuation may need to cool off further.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on AVGO shares. Rosenblatt Securities reiterated a “buy” rating and set a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. The Goldman Sachs Group reiterated a “buy” rating and set a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Benchmark boosted their target price on Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Oppenheimer reiterated an “outperform” rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, KeyCorp reiterated an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $490.13.

Broadcom Stock Down 5.1%

The firm has a 50-day moving average of $399.79 and a 200 day moving average of $362.70. The stock has a market capitalization of $1.76 trillion, a price-to-earnings ratio of 62.02, a price-to-earnings-growth ratio of 0.72 and a beta of 1.41. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.58 EPS. On average, sell-side analysts anticipate that Broadcom Inc. will post 9.96 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom’s dividend payout ratio is 43.33%.

Insiders Place Their Bets

In other news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction that occurred 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 filing with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This trade represents a 9.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. State Street Corp lifted its stake in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC lifted its stake in Broadcom by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after purchasing an additional 2,491,644 shares during the last quarter. Finally, Norges Bank acquired a new stake in Broadcom in the fourth quarter worth $24,252,196,000. 76.43% of the stock is currently 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.