Broadcom (NASDAQ:AVGO) Trading Down 1.1% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 1.1% on Wednesday . The stock traded as low as $359.25 and last traded at $364.38. Approximately 24,500,864 shares were traded during mid-day trading, a decline of 3% from the average session volume of 25,219,350 shares. The stock had previously closed at $368.56.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom raised its forecast for AI-chip revenue to approximately $115 billion for fiscal 2027, up from more than $100 billion previously. The outlook suggests hyperscalers are increasingly adopting custom accelerators alongside Nvidia GPUs. Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Nvidia GPUs
• Positive Sentiment: Analysts remain optimistic about Broadcom’s custom-chip pipeline, AI infrastructure exposure and ability to monetize spending by Alphabet, Meta and OpenAI. Cantor reportedly set a $600 price target, implying substantial upside from current levels. Top Analyst sets jaw-dropping Broadcom stock target after earnings
• Positive Sentiment: OpenAI’s plan to spend roughly $750 billion on compute infrastructure through 2030 reinforces the scale of potential demand for Broadcom’s custom AI chips and networking products, although capacity constraints remain an industry challenge. OpenAI to Spend $750 Billion on Compute by 2030
• Neutral Sentiment: Broadcom’s recent results were strong, but investors are weighing whether its long-term AI opportunity can offset near-term execution and supply limitations. Several analysts still view the post-earnings weakness as a potential buying opportunity. Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock
• Neutral Sentiment: Competition in AI networking and optical components is intensifying, with Lumentum expanding laser capacity and Marvell positioning itself as an alternative to Broadcom. These developments could affect future market share but do not yet signal a direct loss of demand. If You Only Own Nvidia for AI Exposure, You’re Missing Half the Trade
• Negative Sentiment: Truist lowered its Broadcom price target after the company’s fiscal-fourth-quarter revenue guidance came in below Wall Street expectations. The weaker near-term outlook is the primary reason investors sold the stock despite higher long-term AI forecasts. Truist cuts Broadcom stock target on rattling Q4 outlook
• Negative Sentiment: Broadcom is trading well below its 52-week high after losing ground over the past three months, reflecting concerns that elevated expectations and valuation leave little room for a near-term guidance miss. Broadcom Stock Slipped While Its Revenue Schedule Got Longer

Wall Street Analyst Weigh In

A number of research firms recently commented on AVGO. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Royal Bank Of Canada started coverage on shares of Broadcom in a report on Thursday, September 3rd. They set an “outperform” rating for the company. Evercore set a $578.00 price target on shares of Broadcom in a research report on Thursday, September 3rd. Lake Street Capital raised shares of Broadcom to a “buy” rating in a research note on Thursday, September 3rd. Finally, TD Cowen reissued a “buy” rating and set a $475.00 target price (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. Thirty investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $504.93.

Broadcom Stock Down 1.1%

The firm’s 50 day moving average price is $383.09 and its two-hundred day moving average price is $378.02. The company has a market cap of $1.73 trillion, a P/E ratio of 46.54 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom’s revenue was up 85.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.69 earnings per share. Equities research analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Transactions at Broadcom

In related news, Director Justine Page sold 1,602 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gayla J. 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 value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently modified their holdings of AVGO. Fullerton Advisors LLC lifted its stake in shares of Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after buying an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co increased its position in shares of Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after acquiring an additional 25 shares in the last quarter. RFG Holdings Inc. raised its holdings in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after acquiring an additional 26 shares during the last quarter. Yukon Wealth Management Inc. lifted its position in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC lifted its position in Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after acquiring an additional 27 shares in the last quarter. Institutional investors own 76.43% of the company’s stock.

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.