Broadcom (NASDAQ:AVGO) Raised to “Buy” at Erste Group Bank

Broadcom (NASDAQ:AVGO) was upgraded by analysts at Erste Group Bank from a “hold” rating to a “buy” rating in a note issued to investors on Friday.

Other research analysts also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday. Royal Bank Of Canada upped their target price on shares of Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a research report on Thursday. Cantor Fitzgerald restated an “overweight” rating and set a $525.00 target price on shares of Broadcom in a research report on Thursday. Susquehanna restated a “positive” rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Finally, Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the company an “overweight” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $490.13.

Broadcom Stock Down 12.6%

Shares of NASDAQ AVGO opened at $418.91 on Friday. The firm’s 50-day simple moving average is $394.88 and its 200 day simple moving average is $361.73. The company has a market cap of $1.98 trillion, a price-to-earnings ratio of 69.82, a price-to-earnings-growth ratio of 0.99 and a beta of 1.41. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. Broadcom has a 12-month low of $241.11 and a 12-month high of $495.00.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 42.88%. The firm’s quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 EPS. On average, research analysts expect that Broadcom will post 9.89 earnings per share for the current fiscal year.

Insider Activity

In related news, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the sale, the insider directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 value of $12,580,096.76. Following the sale, the insider directly owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. The trade was a 34.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last ninety days. Company insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently made changes to their positions in the business. ROSS JOHNSON & Associates LLC grew its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after acquiring an additional 66 shares in the last quarter. SWAN Capital LLC grew its stake in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 55 shares in the last quarter. Networth Advisors LLC grew its stake in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 71 shares in the last quarter. Miller Global Investments LLC bought a new position in shares of Broadcom during the 4th quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. bought a new position in shares of Broadcom during the 4th quarter worth approximately $33,000. 76.43% of the stock is owned by institutional investors.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record Q2 revenue of about $22.2 billion, up 48% year over year, with non-GAAP EPS of $2.44 beating estimates and free cash flow remaining exceptionally strong. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Positive Sentiment: AI semiconductor revenue more than doubled to $10.8 billion, reinforcing that Broadcom remains a key beneficiary of the AI infrastructure buildout. Broadcom Revenue Climbs on AI Chip Demand
• Positive Sentiment: Several analysts raised price targets after the report, including JPMorgan, Bank of America, Mizuho, and Benchmark, signaling that Wall Street still sees upside despite the selloff. Analyst price target updates
• Neutral Sentiment: Broadcom guided third-quarter revenue to roughly $29.4 billion, above consensus, and reiterated a long-term AI revenue target of more than $100 billion by fiscal 2027. Some investors viewed that outlook as solid, but not aggressive enough to justify the stock’s premium valuation. Reuters article on Broadcom revenue and AI outlook
• Negative Sentiment: AVGO sold off sharply because the company’s AI revenue guidance came in below the market’s loftiest expectations, sparking concerns that the AI trade may be cooling or that the stock had simply gotten too expensive. Broadcom: AI guidance gap reveals the cost of sky-high expectations
• Negative Sentiment: The selloff in Broadcom also dragged down other semiconductor names and weighed on the Nasdaq, showing that investors are repricing the broader AI chip group after the earnings report. Micron, Marvell, and Broadcom lead chipmakers’ premarket losses

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.