Broadcom (NASDAQ:AVGO) Shares Up 3% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) were up 3% during mid-day trading on Tuesday . The stock traded as high as $372.70 and last traded at $368.56. Approximately 29,853,897 shares were traded during trading, an increase of 19% from the average daily volume of 25,181,180 shares. The stock had previously closed at $357.89.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported record AI semiconductor revenue of approximately $16.7 billion, with AI sales up 221% year over year. Management projects roughly $115 billion in AI semiconductor revenue for fiscal 2027 and $230 billion in fiscal 2028, reinforcing the bullish long-term growth case. Broadcom forecasts $230 billion in AI semiconductor revenue
• Positive Sentiment: Demand for custom AI accelerators, networking, and data-center connectivity is expanding as Alphabet, Meta, OpenAI, and other hyperscalers seek lower-cost, workload-specific alternatives to fully programmable chips. This positions Broadcom as a supplier benefiting from multiple AI customers rather than a bet on a single model or platform.
• Positive Sentiment: Analysts and bullish commentators continue to see significant upside if Broadcom converts its AI pipeline into earnings, with some scenarios suggesting the stock could eventually approach $900. Wall Street’s longer-term confidence remains intact despite recent weakness. Wall Street sets Broadcom stock price for next 12 months

Wall Street Analyst Weigh In

Several equities analysts have weighed in on AVGO shares. DA Davidson set a $350.00 price objective on Broadcom and gave the company a “neutral” rating in a report on Friday, September 4th. Rosenblatt Securities assumed coverage on Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $600.00 price target on the stock. Oppenheimer reaffirmed an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. BMO Capital Markets increased their price target on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. Finally, Mizuho lifted their price objective on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a report on Thursday, June 4th. Thirty equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $505.97.

Broadcom Stock Performance

The business has a 50 day moving average of $382.99 and a 200-day moving average of $378.23. The company has a market capitalization of $1.72 trillion, a P/E ratio of 46.08 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the prior year, the business posted $1.69 earnings per share. The company’s revenue was up 85.5% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is presently 33.21%.

Insider Transactions at Broadcom

In related news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in AVGO. Bouchey Financial Group Ltd. raised its position in Broadcom by 15.8% during the 2nd quarter. Bouchey Financial Group Ltd. now owns 7,216 shares of the semiconductor manufacturer’s stock valued at $2,726,000 after purchasing an additional 985 shares during the last quarter. Miramontes Capital LLC boosted its holdings in Broadcom by 2.5% in the second quarter. Miramontes Capital LLC now owns 14,231 shares of the semiconductor manufacturer’s stock valued at $5,376,000 after acquiring an additional 351 shares in the last quarter. Core Capital Management & Research inc. purchased a new position in Broadcom during the 2nd quarter valued at $31,000. The Manufacturers Life Insurance Company increased its position in Broadcom by 32.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 7,023,467 shares of the semiconductor manufacturer’s stock valued at $2,486,114,000 after purchasing an additional 1,712,701 shares during the period. Finally, Capstone Financial Advisors Inc. boosted its stake in shares of Broadcom by 21.3% during the 2nd quarter. Capstone Financial Advisors Inc. now owns 1,733 shares of the semiconductor manufacturer’s stock valued at $655,000 after purchasing an additional 304 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

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.