Broadcom (NASDAQ:AVGO) Hits New 52-Week Low – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) shares reached a new 52-week low on Friday. The company traded as low as $289.77 and last traded at $292.8350, with a volume of 17,966,538 shares changing hands. The stock had previously closed at $291.53.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Several articles argue that Broadcom’s sharp pullback may not reflect its AI growth outlook: demand for its AI chips and infrastructure software remains strong, and one analysis says the shares could be undervalued. These are analyst and editorial views, not company guidance. Broadcom Stock Could Be 37% Undervalued Prediction: November Will Be a Huge Month for Broadcom
• Neutral Sentiment: Broadcom was among stocks discussed in coverage of the AI sector’s recent pullback. That coverage highlights potential upside from AI demand alongside risks such as supply bottlenecks and customer concentration, leaving the outlook dependent on whether growth expectations hold up. AI Boom Winners and Risks
• Negative Sentiment: Shares have been caught in a broad chip selloff, with reports citing deepening fears about AI regulation and uncertainty over future AI infrastructure spending. The news suggests sector-wide risk aversion—not a newly reported deterioration in Broadcom’s business—has weighed on the stock. Broadcom Drops Amid Chip Selloff Broadcom Sinks as AI Regulation Fears Deepen
• Negative Sentiment: ARK reportedly sold a substantial amount of Broadcom shares while adding to Nvidia, adding a high-profile example of investors rotating among AI stocks. The sale may reinforce near-term caution, though it does not necessarily indicate a change in Broadcom’s fundamentals. ARK Sells Broadcom and Buys Nvidia

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Rosenblatt Securities reissued a “buy” rating and issued a $600.00 price objective on shares of Broadcom in a research note on Tuesday, October 27th. HC Wainwright assumed coverage on shares of Broadcom in a report on Tuesday, October 27th. They set a “buy” rating for the company. Piper Sandler assumed coverage on Broadcom in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $460.00 price target for the company. KeyCorp reissued an “overweight” rating and set a $575.00 price objective on shares of Broadcom in a report on Thursday, September 3rd. Finally, DA Davidson upgraded Broadcom from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $350.00 to $400.00 in a research report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $530.52.

Broadcom Trading Up 0.4%

The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The firm has a market capitalization of $1.40 trillion, a price-to-earnings ratio of 37.50 and a beta of 1.49. The firm’s 50-day moving average is $349.45 and its 200 day moving average is $366.37.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company’s revenue was up 85.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.69 EPS. On average, equities analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. Broadcom’s dividend payout ratio is presently 33.21%.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently made changes to their positions in AVGO. Legal & General Group Plc bought a new position in shares of Broadcom during the second quarter worth about $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the 2nd quarter worth about $10,528,191,000. Jupiter Topco LLC bought a new stake in Broadcom in the 2nd quarter valued at about $7,396,271,000. State Street Corp lifted its position 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 purchasing an additional 16,651,378 shares during the last quarter. Finally, Deutsche Bank AG acquired a new position in Broadcom during the 2nd quarter valued at about $5,661,216,000. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics.

Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.