Broadcom (NASDAQ:AVGO) Stock Falls 1.1% – Time to Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) fell 1.1% on Wednesday. The company traded as low as $350.69 and last traded at $351.19. 18,309,319 shares were traded during mid-day trading, a decline of 27% from the average session volume of 25,143,646 shares. The stock had previously closed at $355.10.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI opportunity remains substantial as Anthropic reportedly becomes its largest XPU customer. Continued infrastructure spending by major AI developers could support strong future demand for Broadcom’s custom chips and networking products. Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test
• Positive Sentiment: Historical trading data show Broadcom shares have risen in each of the past 13 fourth quarters, with previous gains ranging from less than 3% to approximately 37%. The seasonal pattern may encourage bullish investors, although it does not guarantee a repeat performance. History Says Broadcom Stock’s Best Season Starts Now
• Positive Sentiment: Broadcom has increased its dividend for 15 consecutive years, most recently by 10%, and its free cash flow through three quarters of fiscal 2026 had already exceeded the full-year 2025 total. Investors may view the potential for another December increase as evidence of financial strength. Broadcom’s Dividend Has Grown About 90-Fold Since 2010
• Positive Sentiment: One report places the average analyst price target at $527.20, indicating substantial potential upside from recent trading levels and continued Wall Street confidence in AVGO’s long-term prospects. Broadcom Stock Has Average Target Price of $527.20
• Neutral Sentiment: Comparisons with Qualcomm and inTEST frame Broadcom as a large, diversified semiconductor and infrastructure-software company, but these articles offer limited new company-specific information likely to alter the stock’s immediate direction. Broadcom vs. Qualcomm
• Negative Sentiment: Anthropic’s leaked IPO prospectus reportedly lists $161.2 billion of lease obligations to Broadcom and $518 billion of total infrastructure commitments. Questions about Anthropic’s ability to fund those obligations create customer-concentration and credit risks, particularly because the AI company is expected to become Broadcom’s largest XPU customer. Broadcom’s AI Growth Story Faces an Anthropic Test
• Negative Sentiment: Broadcom’s elevated valuation—about 45 times earnings in the provided market data—leaves the shares sensitive to any doubts about AI spending, customer solvency or the pace of future growth.

Wall Street Analysts Forecast Growth

Several brokerages have commented on AVGO. Weiss Ratings lowered shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Sanford C. Bernstein reiterated a “buy” rating on shares of Broadcom in a research report on Monday, September 21st. Argus increased their price target on Broadcom from $425.00 to $625.00 and gave the stock a “buy” rating in a research note on Friday, June 5th. New Street Research raised their price target on Broadcom from $420.00 to $600.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Finally, Arete Research raised their price target on Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Stock Performance

The stock has a market cap of $1.68 trillion, a P/E ratio of 44.85 and a beta of 1.44. 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 fifty day moving average of $375.17 and a 200 day moving average of $380.59.

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, beating analysts’ consensus estimates 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 analyst estimates of $29.24 billion. During the same period last year, the company posted $1.69 EPS. The firm’s quarterly revenue was up 85.5% on a year-over-year basis. On average, equities analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s payout ratio is presently 33.21%.

Insider Activity

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 51,890 shares of company stock worth $20,241,368. 1.90% of the stock is owned by company insiders.

Institutional Trading of Broadcom

Large investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Broadcom during the fourth quarter valued at $24,252,196,000. Legal & General Group Plc purchased a new stake in Broadcom during the second quarter valued at about $11,998,148,000. Bank of New York Mellon Corp acquired a new position in shares of Broadcom in the second quarter worth about $10,528,191,000. Jupiter Topco LLC acquired a new stake in shares of Broadcom during the second quarter valued at approximately $7,396,271,000. Finally, State Street Corp lifted its position in shares of 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 in the last quarter. 76.43% of the stock is currently owned by institutional investors.

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 wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.