Broadcom (NASDAQ:AVGO) Stock Jumps 2.3% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shares rose 2.3% on Monday. The stock traded as high as $332.12 and last traded at $329.17. Approximately 18,458,856 shares traded hands during trading, a decline of 26% from the average session volume of 24,853,141 shares. The stock had previously closed at $321.68.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Unusually heavy call-option activity suggests traders are positioning for a rebound in Broadcom shares, reinforcing the short-term bullish sentiment. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Positive Sentiment: Anthropic’s IPO filing highlighted approximately $224.5 billion in non-cancelable compute commitments with Amazon and Alphabet. The spending should support demand for the custom application-specific chips and networking equipment Broadcom supplies to hyperscalers. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Analysts and investors increasingly view Broadcom as a leading alternative supplier of custom AI accelerators and Ethernet networking components, potentially allowing it to capture workloads that might otherwise rely on Nvidia’s proprietary ecosystem. Not AMD. Not Marvell. Here’s Which Company Nvidia Needs to Be Worried About.
• Positive Sentiment: Several bullish outlooks argue that accelerating AI revenue, custom-chip growth and networking demand could support substantial long-term upside. The stock’s decline from its peak has also prompted questions about whether its valuation is becoming more attractive. Broadcom Is At a 6-Month Low – Is AVGO Stock Too Cheap?
• Neutral Sentiment: Broadcom is receiving unusually high online investor attention, which may increase trading activity but does not by itself indicate a change in fundamentals. Investors Heavily Search Broadcom Inc. Here is What You Need to Know
• Neutral Sentiment: Long-range forecasts project major market-cap growth, but these targets depend on Broadcom sustaining exceptionally strong AI growth through 2030 and therefore carry considerable execution risk. Prediction: Broadcom Will Be a $4.5 Trillion Company by 2030
• Negative Sentiment: Alphabet is diversifying its TPU supply chain by working with MediaTek, raising concerns that Broadcom could lose some custom-chip business. Demand from Anthropic and OpenAI may partly offset that risk. 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 hyperscaler infrastructure expansion, while Erste Group Bank’s reduction to Broadcom earnings estimates adds pressure to near-term expectations. Is Money for AI Data Centers Drying Up?

Analysts Set New Price Targets

A number of research firms have commented on AVGO. Cantor Fitzgerald lifted their target price on shares of Broadcom from $525.00 to $600.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. BMO Capital Markets lifted their price objective on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Truist Financial lowered 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. Citigroup reissued a “buy” rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. Finally, Rosenblatt Securities initiated coverage on Broadcom in a research note on Thursday, September 3rd. They set a “buy” rating and a $600.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and an average target price of $529.17.

Broadcom Stock Up 2.3%

The company has a 50-day moving average of $356.05 and a two-hundred day moving average of $384.74. 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 company has a market capitalization of $1.57 trillion, a PE ratio of 42.04 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business’s revenue for the quarter was up 85.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.69 earnings per share. Sell-side analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Hedge Funds Weigh In On Broadcom

Large investors have recently made changes to their positions in the business. State Street Corp increased its holdings in Broadcom by 8.7% in 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 last quarter. Bank of America Corp DE grew its position 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 valued at $23,202,543,000 after purchasing an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Broadcom by 3.8% in the second 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 last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings 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 worth $15,178,195,000 after purchasing an additional 1,140,598 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Broadcom in the second quarter worth about $11,998,148,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

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.