Broadcom (NASDAQ:AVGO) Trading Down 1.6% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) shares fell 1.6% during mid-day trading on Tuesday . The company traded as low as $337.90 and last traded at $339.27. 23,198,483 shares changed hands during trading, a decline of 8% from the average daily volume of 25,238,791 shares. The stock had previously closed at $344.72.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom hyperscaler-chip business remains the central bullish catalyst. Management projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, while recent reporting says AI chip orders are tripling. The scale of those forecasts supports the view that hyperscaler demand remains robust. Investors Want to Know When Broadcom’s Custom Hyperscaler Chips Will Move Share Prices
• Positive Sentiment: Analysts and commentators continue to identify Broadcom as a major beneficiary of the next phase of AI spending, particularly as data-center customers seek lower-cost, workload-specific chips and advanced networking. Broadcom’s valuation and expected earnings growth are being viewed as attractive after the recent selloff. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: The wider semiconductor rebound is providing a favorable trading backdrop for AVGO, alongside strength in AMD and other AI-related chip stocks. AMD Jumps as Semiconductor Rebound Reaches a Third Session
• Neutral Sentiment: Enterprise AI could increase demand for VMware private-cloud software, but industry data from IDC, Kyndryl, and HPE presents a mixed picture regarding the strength and timing of that opportunity. Enterprise AI to Boost Broadcom’s Software Business?
• Negative Sentiment: Investors remain concerned that calls from Anthropic and OpenAI executives to slow the development of advanced AI models could reduce or delay demand for chips and infrastructure. Broadcom’s CEO has reportedly maintained that the company’s AI revenue targets have not changed, but the debate has contributed to recent volatility. Broadcom Shares Fell as Slower AI Development Raised Demand Concerns

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Rosenblatt Securities started coverage on Broadcom in a research note on Thursday, September 3rd. They issued a “buy” rating and a $600.00 target price on the stock. Susquehanna restated a “positive” rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. BMO Capital Markets raised their price target on shares of Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. DA Davidson set a $350.00 price objective on shares of Broadcom and gave the company a “neutral” rating in a research report on Friday, September 4th. Finally, UBS Group downgraded shares of Broadcom from a “buy” rating to a “hold” rating in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $509.04.

Broadcom Price Performance

The company has a market cap of $1.66 trillion, a PE ratio of 44.53 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The stock’s 50-day moving average is $380.83 and its 200 day moving average is $378.97.

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

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a dividend of $0.65 per share. 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 is currently 33.21%.

Insider Activity at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction dated 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 completion of the sale, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,492 shares of company stock valued at $20,840,292 in the last ninety days. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC increased its holdings in shares of Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Norges Bank acquired a new stake in shares of Broadcom during the fourth quarter worth about $24,252,196,000. Bank of America Corp DE lifted its holdings in shares of Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after purchasing an additional 2,685,916 shares during the period. Wellington Management Group LLP boosted its position in Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after buying an additional 1,892,721 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock valued at $15,178,195,000 after buying an additional 1,140,598 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

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.