Broadcom (NASDAQ:AVGO) Trading 2.3% Higher – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) shot up 2.3% during mid-day trading on Thursday . The stock traded as high as $350.94 and last traded at $347.30. 22,309,381 shares were traded during mid-day trading, a decline of 11% from the average session volume of 25,176,193 shares. The stock had previously closed at $339.51.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom benefited from a third consecutive session of strength across semiconductor stocks, with renewed investor appetite for AI infrastructure and chip suppliers. AMD Jumps 7% as Semiconductor Rebound Reaches a Third Session; Broadcom Rises 3%, NVIDIA Edges Higher
• Positive Sentiment: Investors continue to focus on Broadcom’s custom hyperscaler-chip opportunity. The company’s AI chip orders are reportedly tripling, while management has projected approximately $115 billion in AI semiconductor revenue for fiscal 2027 and $230 billion for fiscal 2028—figures that imply substantial long-term growth if execution remains strong. Investors Want to Know When Broadcom’s Custom Hyperscaler Chips Will Move Share Prices
• Positive Sentiment: Several analyst and investment articles argue that the recent selloff has created valuation upside. Bullish commentary points to Broadcom’s repeated earnings beats, accelerating AI revenue, share repurchases, and forecasts that the stock could recover significantly from its highs. Despite Hype, Broadcom Keeps Edging Sideways and Down
• Neutral Sentiment: Broadcom’s VMware software business could benefit from enterprise AI and private-cloud demand, but industry data from IDC, Kyndryl, and HPE presents a mixed picture regarding the strength and timing of that opportunity. Enterprise AI to Boost Broadcom’s Software Business
• Negative Sentiment: The stock remains under pressure after AI executives raised concerns about slowing or pausing the development of advanced models. Investors fear that a slower AI buildout could delay demand for chips, networking equipment, and related infrastructure, even though Broadcom’s CEO has said its AI revenue targets have not changed. Broadcom Shares Fell as Slower AI Development Raised Demand Concerns

Analyst Ratings Changes

AVGO has been the subject of a number of recent analyst reports. Erste Group Bank restated a “hold” rating on shares of Broadcom in a report on Tuesday, July 7th. Fox Advisors raised shares of Broadcom to an “outperform” rating in a research note on Thursday, September 3rd. Oppenheimer reissued an “outperform” rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Evercore set a $578.00 price target on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Truist Financial reduced their price objective on Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $509.04.

Broadcom Stock Performance

The firm’s 50 day moving average is $380.83 and its 200 day moving average is $378.97. 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 stock has a market cap of $1.66 trillion, a P/E ratio of 44.36 and a beta of 1.44.

Broadcom (NASDAQ:AVGO) last announced its 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 company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm’s quarterly revenue was up 85.5% compared to the same quarter last year. During the same period in the prior year, the company posted $1.69 EPS. Analysts anticipate that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Insider Activity

In related news, Director Gayla Delly sold 1,890 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction dated 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 sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,492 shares of company stock valued at $20,840,292 over the last ninety days. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in shares of Broadcom during the fourth quarter valued at approximately $24,252,196,000. Legal & General Group Plc purchased a new stake in shares of Broadcom during the second quarter worth $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the second quarter valued at about $10,528,191,000. Jupiter Topco LLC purchased a new position in shares of Broadcom in the second quarter worth about $7,396,271,000. Finally, Deutsche Bank AG purchased a new position in shares of Broadcom in the second quarter worth about $5,661,216,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.