Erste Group Bank Comments on Broadcom FY2027 Earnings

Broadcom Inc. (NASDAQ:AVGO) – Equities research analysts at Erste Group Bank raised their FY2027 earnings estimates for shares of Broadcom in a note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the semiconductor manufacturer will post earnings of $17.59 per share for the year, up from their previous forecast of $17.54. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Broadcom’s current full-year earnings is $10.37 per share.

Several other analysts have also recently commented on the stock. Rosenblatt Securities initiated coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $600.00 target price for the company. KeyCorp restated an “overweight” rating and issued a $575.00 price target on shares of Broadcom in a research report on Thursday, September 3rd. Arete Research lifted their price objective on Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Sanford C. Bernstein reaffirmed a “buy” rating on shares of Broadcom in a research note on Monday, September 21st. Finally, BNP Paribas Exane upped their price objective on Broadcom from $675.00 to $715.00 and gave the company an “outperform” rating in a report on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Price Performance

Shares of AVGO stock opened at $357.31 on Wednesday. The firm’s 50 day moving average price is $369.27 and its two-hundred day moving average price is $383.32. 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 has a 52-week low of $289.96 and a 52-week high of $495.00. The stock has a market cap of $1.71 trillion, a PE ratio of 45.63 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last posted its quarterly 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 net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous year, the firm posted $1.69 earnings per share. Broadcom’s revenue for the quarter was up 85.5% compared to the same quarter last year.

Broadcom Dividend Announcement

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

Institutional Investors Weigh In On Broadcom

Hedge funds have recently bought and sold shares of the company. State Street Corp increased its position in shares of Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after buying an additional 16,651,378 shares in the last quarter. Bank of America Corp DE raised its stake in Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after buying an additional 2,685,916 shares during the period. Wellington Management Group LLP lifted its holdings in Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after acquiring an additional 1,892,721 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after acquiring an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc bought a new position in Broadcom during the second quarter worth about $11,998,148,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is preparing to launch an AI networking platform at the OCP Global Summit 2026. The announcement reinforces expectations that the company can benefit from hyperscaler demand for custom AI infrastructure and networking equipment. Broadcom To Launch AI Networking Platform At OCP Global Summit 2026
• Positive Sentiment: Erste Group Bank modestly raised its FY2027 EPS forecast for Broadcom to $17.59 from $17.54. Although the firm maintained a “Hold” rating, the estimate increase signals continued confidence in the company’s earnings growth. Erste Group Bank Raises Broadcom EPS Estimate
• Positive Sentiment: Broadcom introduced VMware HyperArmor, a security product designed to protect the ESX hypervisor within VMware Cloud Foundation. The release could strengthen the company’s infrastructure-software offering and support cross-selling to enterprise customers. Broadcom Introduces VMware HyperArmor
• Neutral Sentiment: CEO Hock Tan cautioned that capital availability, rather than memory-chip supply, may be the largest near-term constraint on AI expansion. His comments highlight demand risks but also underscore the scale of Broadcom’s AI opportunity. Broadcom CEO Identifies Capital Constraints
• Negative Sentiment: Broadcom remains under pressure after retreating sharply from its record high, despite reported AI-chip revenue of $16.7 billion. The decline reflects profit-taking, elevated expectations and investor concern that AI spending may not justify the stock’s premium valuation. Broadcom Stock Down From Peak Despite AI Revenue
• Negative Sentiment: Broader semiconductor-equipment stocks sold off as investors locked in gains from the AI rally, creating a negative read-through for chip-related names, including AVGO. Semiconductor Equipment Stocks Slide

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.