Broadcom (NASDAQ:AVGO) Shares Down 5.1% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) was down 5.1% on Wednesday . The stock traded as low as $371.17 and last traded at $372.10. Approximately 37,454,200 shares changed hands during mid-day trading, an increase of 45% from the average daily volume of 25,888,504 shares. The stock had previously closed at $392.16.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Several articles argue the selloff is overdone and highlight Broadcom’s strong AI demand, with Q2 revenue up 48%, AI semiconductor revenue up 143%, and more than $30 billion in AI bookings, suggesting long-term growth remains intact.
• Positive Sentiment: Broadcom announced a new AI infrastructure partnership with Apollo Global Management and Blackstone, which could expand financing for AI data center buildout and reinforce Broadcom’s role in the AI ecosystem.
• Positive Sentiment: Wall Street commentary remains constructive, with multiple pieces pointing to EPS growth above 50% over the next five years and additional analyst support, including a JPMorgan target reset and other buy-rated commentary.
• Neutral Sentiment: Broadcom’s Private Cloud Outlook 2026 suggests enterprise AI inference is shifting toward private cloud deployments, which may support future demand but is more of a long-term theme than an immediate catalyst.
• Negative Sentiment: Semiconductor stocks are under pressure broadly, and AVGO has been caught up in a rotation out of high-growth tech, with articles noting weakness across the chip sector and increased bearish sentiment after earnings.
• Negative Sentiment: Some investors are focusing on Broadcom’s slightly soft AI revenue guidance and warning signs around the AI trade, which has fueled concerns that the stock’s near-term valuation may need to cool off further.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on AVGO shares. Mizuho increased their target price on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. increased their target price on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Citigroup reaffirmed a “buy” rating on shares of Broadcom in a research report on Thursday, June 4th. Weiss Ratings raised Broadcom from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, May 27th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $490.13.

Broadcom Price Performance

The company has a market capitalization of $1.76 trillion, a price-to-earnings ratio of 62.02, a price-to-earnings-growth ratio of 0.72 and a beta of 1.41. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business has a fifty day moving average price of $399.79 and a 200 day moving average price of $362.70.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same quarter last year, the business posted $1.58 earnings per share. The company’s quarterly revenue was up 47.9% on a year-over-year basis. On average, research analysts expect that Broadcom Inc. will post 9.96 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Transactions at Broadcom

In related news, insider S. Ram Velaga sold 38,841 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the insider owned 96,147 shares of the company’s stock, valued at $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the transaction, the insider directly owned 278,141 shares of the company’s stock, valued at $89,450,145.60. This represents a 15.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 324,282 shares of company stock worth $106,425,249. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Fullerton Advisors LLC increased its stake in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after purchasing an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co increased its stake in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after purchasing an additional 25 shares in the last quarter. RFG Holdings Inc. increased its stake in 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 purchasing an additional 26 shares in the last quarter. Yukon Wealth Management Inc. increased its stake in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares in the last quarter. Finally, Capital Planning LLC increased its stake in Broadcom by 0.7% in the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after purchasing an additional 28 shares in the last quarter. Institutional investors own 76.43% of the company’s stock.

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.