Broadcom (NASDAQ:AVGO) Shares Gap Up – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) gapped up prior to trading on Tuesday . The stock had previously closed at $314.43, but opened at $326.73. Broadcom shares last traded at $323.9810, with a volume of 6,103,585 shares changing hands.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Long‑term TPU and networking supply deals with Google and an expanded Anthropic agreement materially increase multi‑year revenue visibility for Broadcom’s custom AI chips and data‑center networking — a primary driver of the recent rally. Anthropic compute deal article
• Positive Sentiment: Market commentary now cites Anthropic access to ~3.5 GW of TPU capacity (starting 2027) and estimates that each GW can represent meaningful revenue — supporting long‑term upside scenarios (some forecasts model Broadcom AI revenue in the many‑tens of billions). TipRanks Anthropic deal article
• Positive Sentiment: Some sell‑side support persists: Rosenblatt reaffirmed a Buy with a $500 price target, keeping a high upside thesis alive for investors focused on AI exposure. Benzinga Rosenblatt note
• Neutral Sentiment: Leadership change: Broadcom is appointing a new CFO — a routine corporate development that may create short‑term uncertainty around execution but is not unusual for a company scaling AI partnerships. MSN CFO article
• Neutral Sentiment: Product/solutions rollout: Broadcom launched the Arcot Smart Ruleset (ML‑powered 3‑D Secure rules engine), highlighting continued software/service innovation that diversifies revenue beyond chips. GlobeNewswire press release
• Negative Sentiment: Seaport Global downgraded Broadcom to Neutral, citing industry limits and signaling growing caution among some analysts after AVGO’s multi‑year run — this puts downward pressure by widening the range of sentiment and prompting some profit‑taking. Seeking Alpha downgrade article
• Negative Sentiment: Bank of America reset its forecast for AVGO, reflecting more cautious near‑term expectations and adding to the analyst‑driven pressure that can amplify volatility after the recent run. Yahoo Finance BofA piece

Analyst Ratings Changes

Several brokerages recently issued reports on AVGO. The Goldman Sachs Group reiterated a “buy” rating and issued a $450.00 price target on shares of Broadcom in a research note on Monday, January 5th. Morgan Stanley increased their price target on Broadcom from $462.00 to $470.00 and gave the stock an “overweight” rating in a research report on Friday, March 6th. DA Davidson raised Broadcom to a “hold” rating in a research report on Friday, February 13th. Wolfe Research raised Broadcom from a “peer perform” rating to an “outperform” rating and set a $400.00 price target on the stock in a research report on Friday, January 30th. Finally, Royal Bank Of Canada reduced their price target on Broadcom from $370.00 to $340.00 and set a “sector perform” rating on the stock in a research report on Monday, March 2nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Stock Performance

The stock’s fifty day moving average price is $324.89 and its two-hundred day moving average price is $342.78. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The company has a market cap of $1.66 trillion, a P/E ratio of 68.48, a P/E/G ratio of 0.67 and a beta of 1.24.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm’s quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.60 EPS. As a group, equities analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were given 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 was Monday, March 23rd. Broadcom’s dividend payout ratio is currently 50.78%.

Insider Activity at Broadcom

In related news, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer directly owned 327,760 shares in the company, valued at $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the transaction, the insider owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 273,049 shares of company stock valued at $88,300,115 in the last quarter. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of institutional investors have recently added to or reduced their stakes in AVGO. Norges Bank bought a new stake in shares of Broadcom in the 4th quarter valued at $24,252,196,000. Cardano Risk Management B.V. boosted its stake in Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock worth $4,391,940,000 after acquiring an additional 11,414,701 shares in the last quarter. State Street Corp boosted its stake in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after buying an additional 4,694,313 shares during the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.