Broadcom (NASDAQ:AVGO) Stock Jumps 2.1% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded up 2.1% during trading on Monday. The company traded as high as $363.87 and last traded at $362.51. 20,425,713 shares changed hands during trading, a decline of 19% from the average session volume of 25,114,283 shares. The stock had previously closed at $355.14.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Anthropic deal supports AI demand outlook. Reports say Broadcom is involved in a potential $42 billion chip-buying and financing arrangement with Anthropic. The deal could provide a major customer with funds to purchase Broadcom’s custom AI hardware, potentially supporting future revenue growth. Broadcom Stock Jumps Following Reported $42 Billion Financing Deal With Anthropic
• Positive Sentiment: AI semiconductor growth remains exceptional. Broadcom reportedly generated $16.7 billion in AI chip sales in fiscal third-quarter 2026, up 221% year over year, and expects $21.7 billion in the fourth quarter. Analysts and investors see custom chips, networking products, and data-center infrastructure as potential drivers of additional growth. Broadcom Trades Above Its Own Average Multiple While Growth Cools
• Positive Sentiment: Analysts see further upside from the AI spending cycle. Several reports argue that Broadcom’s AI revenue could continue multiplying through 2027 and 2028, while Morgan Stanley considers Broadcom relatively insulated from an AI-related power shortage affecting parts of the chip supply chain. Nvidia, Broadcom Shielded as AI Power Crunch Hits Chip Supply Chain, Says Morgan Stanley
• Neutral Sentiment: Upcoming industry data could influence the shares. Taiwan Semiconductor Manufacturing’s October 15 results are viewed as an important read-through for AI-chip demand, with some commentary expecting Broadcom to outperform Nvidia through late November. Why October 15 Is the Most Important Day for NVIDIA and Broadcom
• Negative Sentiment: Valuation and financing risks remain. Broadcom trades at a premium multiple after its major rally, while the Anthropic arrangement reportedly involves Broadcom lending money to a customer that then buys its chips. This circular-financing structure raises questions about customer credit quality, concentration, and how durable the reported demand will be. Broadcom’s Massive $42 Billion Chip-Buying Deal with Anthropic Raises Circular Financing Worries

Analysts Set New Price Targets

AVGO has been the subject of several analyst reports. Evercore set a $578.00 target price on shares of Broadcom and gave the company an “outperform” rating in a research note on Thursday, September 3rd. Arete Research raised their price objective on Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. BNP Paribas Exane boosted their target price on Broadcom from $675.00 to $715.00 and gave the stock an “outperform” rating in a report on Friday, September 4th. Erste Group Bank reaffirmed a “hold” rating on shares of Broadcom in a report on Tuesday, July 7th. Finally, The Goldman Sachs Group increased their price objective on shares of Broadcom from $525.00 to $540.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $527.20.

Broadcom Trading Up 2.1%

The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The business has a fifty day simple moving average of $372.74 and a 200 day simple moving average of $381.07. The stock has a market capitalization of $1.73 trillion, a price-to-earnings ratio of 46.30 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping 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 company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the firm earned $1.69 earnings per share. The company’s revenue was up 85.5% on a year-over-year basis. As a group, research analysts expect that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

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

Insider Transactions at Broadcom

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

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc acquired a new position in Broadcom in the 2nd quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new position in shares of Broadcom during the second quarter worth $10,528,191,000. Jupiter Topco LLC acquired a new stake in Broadcom in the second quarter valued at $7,396,271,000. State Street Corp increased its holdings in Broadcom by 8.7% in the second 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 period. Finally, Deutsche Bank AG bought a new position in Broadcom during the 2nd quarter worth $5,661,216,000. 76.43% of the stock is currently owned by 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 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.