Broadcom (NASDAQ:AVGO) Shares Up 1% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) traded up 1% during trading on Wednesday. The company traded as high as $339.24 and last traded at $337.80. 16,910,811 shares changed hands during trading, a decline of 32% from the average session volume of 24,887,033 shares. The stock had previously closed at $334.37.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: New fraud-prevention product: Broadcom launched Arcot Scam Defense, a feature designed to block AI-assisted social-engineering fraud during card-not-present transactions. The product could strengthen Broadcom’s payments-security offering and support growth in its infrastructure-software business. Broadcom Launches Arcot Scam Defense to Block Social Engineering Fraud
• Positive Sentiment: Long-term NTT DOCOMO agreement: Broadcom signed a 10-year agreement to advance NTT DOCOMO’s private cloud using VMware Cloud Foundation. The deal reinforces VMware’s role as a potentially durable, recurring software cash generator and expands Broadcom’s enterprise-cloud presence. Broadcom to Advance NTT DOCOMO’s Private Cloud with VMware Cloud Foundation
• Positive Sentiment: AI growth remains the main bullish thesis: Coverage highlights reported AI-chip sales growth of 236%, supported by demand for custom accelerators and networking infrastructure. Broadcom is also viewed as a potential beneficiary of continued spending by large AI companies, including OpenAI.
• Neutral Sentiment: Investor debate is centered on risk versus opportunity: Broadcom is being compared favorably with other large technology stocks because of its AI and infrastructure-software exposure, but its forward valuation remains elevated. The shares are also more than 30% below their 52-week high, reflecting skepticism despite strong operating momentum.
• Negative Sentiment: Sector concerns continue to limit upside: Semiconductor stocks have pulled back amid interest-rate worries, fears that AI spending may be excessive, and concerns about whether customers can finance the industry’s enormous capital requirements. CEO Hock Tan’s warnings about capital constraints and describing AI as a “casino” have unsettled some investors.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. KeyCorp reissued an “overweight” rating and set a $575.00 price target on shares of Broadcom in a research note on Thursday, September 3rd. Jefferies Financial Group started coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued a “buy” rating and a $550.00 target price on the stock. TD Cowen reaffirmed a “buy” rating and set a $475.00 price target (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. BMO Capital Markets lifted their price target on shares of Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research report on Thursday, September 3rd. Finally, Truist Financial dropped their target price on Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Price Performance

The business has a fifty day moving average of $360.94 and a 200 day moving average of $384.47. 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 has a market cap of $1.61 trillion, a PE ratio of 43.14 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during 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 was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.69 earnings per share. Sell-side analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Income Insurance Ltd grew its position in shares of Broadcom by 0.6% in the 3rd quarter. Income Insurance Ltd now owns 14,062 shares of the semiconductor manufacturer’s stock valued at $4,938,000 after acquiring an additional 80 shares during the period. Kraft Davis & Associates LLC raised its stake in Broadcom by 11.5% in the third quarter. Kraft Davis & Associates LLC now owns 2,426 shares of the semiconductor manufacturer’s stock valued at $815,000 after buying an additional 250 shares during the period. Albion Financial Group UT raised its stake in Broadcom by 1.2% in the third quarter. Albion Financial Group UT now owns 82,882 shares of the semiconductor manufacturer’s stock valued at $29,107,000 after buying an additional 1,018 shares during the period. Hosking Partners LLP lifted its position in shares of Broadcom by 2.9% in the third quarter. Hosking Partners LLP now owns 118,895 shares of the semiconductor manufacturer’s stock valued at $41,755,000 after buying an additional 3,323 shares during the last quarter. Finally, Canoe Financial LP acquired a new stake in shares of Broadcom in the third quarter valued at approximately $5,601,000. Institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.