Broadcom (NASDAQ:AVGO) Stock Bumped Up to Buy by DA Davidson

Broadcom (NASDAQ:AVGO) was upgraded by research analysts at DA Davidson from a “neutral” rating to a “buy” rating in a report released on Tuesday, Briefing.com reports. The brokerage currently has a $400.00 price target on the semiconductor manufacturer’s stock. DA Davidson‘s target price would suggest a potential upside of 21.52% from the company’s previous close.

A number of other brokerages have also recently issued reports on AVGO. Wall Street Zen cut shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Evercore set a $578.00 price objective on shares of Broadcom and gave the company an “outperform” rating in a report on Thursday, September 3rd. Morgan Stanley reissued an “overweight” rating and issued a $505.00 price target (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. Tigress Financial started coverage on Broadcom in a report on Thursday, October 22nd. They set a “buy” rating and a $600.00 price target for the company. Finally, Jefferies Financial Group assumed coverage on Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $550.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Broadcom currently has a consensus rating of “Moderate Buy” and a consensus price target of $530.52.

Broadcom Price Performance

Shares of AVGO stock opened at $329.17 on Tuesday. The stock’s fifty day moving average is $356.76 and its 200-day moving average is $367.07. 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 has a 52 week low of $289.96 and a 52 week high of $495.00. The stock has a market capitalization of $1.57 trillion, a PE ratio of 42.04 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping 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 during the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the previous year, the business posted $1.69 EPS. The company’s quarterly revenue was up 85.5% compared to the same quarter last year. Equities research analysts expect that Broadcom will post 10.37 EPS for the current fiscal year.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently added to or reduced their stakes in the stock. State Street Corp grew its position in shares of Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after acquiring an additional 16,651,378 shares during the period. Bank of America Corp DE lifted its holdings in Broadcom by 4.6% during the 2nd 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 in the last quarter. Wellington Management Group LLP boosted its stake in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of 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 acquiring an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc bought a new stake in Broadcom during the 2nd quarter worth approximately $11,998,148,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A coalition of banks and Blackstone is reportedly arranging a $63 billion financing vehicle to purchase AI-computing infrastructure from Broadcom and lease it to Anthropic. The proposed transaction would provide a potentially significant source of demand and revenue visibility. Banks, Blackstone Form $63 Billion Financing Vehicle for Broadcom AI Tech
• Positive Sentiment: Anthropic’s IPO filing disclosed approximately $224.5 billion of non-cancelable compute commitments with Amazon and Alphabet. The scale of those commitments supports continued spending on custom AI accelerators and networking equipment supplied or co-designed by Broadcom. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Reports highlight unusually heavy call-option activity and argue that Broadcom’s custom AI chips are gaining popularity among major AI companies. Bullish commentary also points to strong projected growth in custom silicon and networking through 2030. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Neutral Sentiment: Broadcom’s stock is being described as potentially attractive after reaching a six-month low, although investors remain focused on whether future AI growth is already reflected in its premium valuation. Broadcom Is At a 6-Month Low – Is AVGO Stock Too Cheap?
• Negative Sentiment: Alphabet is reportedly diversifying its TPU suppliers to include MediaTek, raising concerns that Broadcom could lose some custom-chip business. Growing demand from Anthropic and OpenAI may offset that risk, but supplier diversification remains an important competitive threat. Broadcom’s AI Chip Business Is Booming, But Alphabet’s Strategy Highlights 2 Key Risks
• Negative Sentiment: Concerns that debt-market funding for AI data centers is tightening could slow infrastructure construction and customer spending. Separately, Erste Group Bank cut its earnings estimates for Broadcom, adding near-term pressure to expectations.

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.