Shares of Broadcom Inc. (NASDAQ:AVGO – Get Free Report) fell 2.4% during mid-day trading on Monday . The company traded as low as $289.96 and last traded at $293.41. 27,797,091 shares traded hands during trading, an increase of 4% from the average session volume of 26,661,613 shares. The stock had previously closed at $300.68.
Key Stories Impacting Broadcom
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Huge AI revenue and a major government contract boost revenue visibility — Broadcom reported 106% AI semiconductor growth and landed a five‑year, ~$970M software agreement with the U.S. Department of Defense, supporting the bullish case for continued AI upside. Broadcom (AVGO) Valuation Check After 106% AI Chip Growth And US$970 Million Defense Software Deal
- Positive Sentiment: Analysts are upbeat — consensus and select broker notes place a strong‑buy stance on AVGO with an average upside figure cited near ~61%, which can support accumulation on dips. Analysts See 61% Upside to Broadcom Inc. (AVGO)
- Positive Sentiment: Broader bullish commentary positions Broadcom as a major beneficiary of the AI infrastructure cycle and custom AI chips market, reinforcing longer‑term growth expectations. 2 Beaten-Down AI Stocks to Buy Before the Next Bull Market
- Neutral Sentiment: Comparisons with peers such as NVIDIA and Marvell highlight that Broadcom competes strongly in AI but faces a different product mix and margin profile; useful context for relative positioning rather than an absolute buy/sell trigger. Nvidia vs Broadcom: Which AI Stock Will Make You More Money
- Neutral Sentiment: Coverage and rating notes are attracting attention; several articles review recent analyst calls and consensus, which can amplify moves but may not immediately change fundamentals. Is Broadcom Inc. (AVGO) a Buy as Wall Street Analysts Look Optimistic?
- Negative Sentiment: Gross margins are slipping sequentially as the product mix shifts toward AI chips, raising near‑term margin pressure and prompting questions about sustainability of current profitability levels. AVGO’s Gross Margin Contracts Sequentially: Is Growth Getting Harder?
- Negative Sentiment: Some pieces lay out the bear case — noting AVGO is down year‑to‑date and warning that strong AI growth may be masking weaker non‑AI trends and elevated valuation risk. These narratives can amplify downside on any negative guidance. Broadcom Drops 11% Year to Date: Should You Buy the Stock on the Dip?
Wall Street Analysts Forecast Growth
AVGO has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft set a $430.00 price target on Broadcom and gave the company a “buy” rating in a report on Friday, December 12th. UBS Group set a $475.00 target price on Broadcom and gave the company a “buy” rating in a research report on Monday, December 15th. Rosenblatt Securities boosted their target price on Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday, March 5th. Wolfe Research upgraded shares of Broadcom from a “peer perform” rating to an “outperform” rating and set a $400.00 price objective on the stock in a report on Friday, January 30th. Finally, Benchmark reissued a “buy” rating and issued a $485.00 price objective on shares of Broadcom in a research report on Thursday, March 5th. One investment 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 company. Based on data from MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and an average price target of $435.30.
Broadcom Stock Performance
The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock has a 50 day simple moving average of $325.36 and a two-hundred day simple moving average of $343.92. The stock has a market capitalization of $1.48 trillion, a P/E ratio of 61.23, a P/E/G ratio of 0.63 and a beta of 1.22.
Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business’s quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.60 EPS. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.
Broadcom Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, March 23rd. Broadcom’s payout ratio is presently 50.78%.
Insider Activity
In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the sale, the insider owned 74,626 shares in the company, valued at $24,000,467.86. This trade represents a 34.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider S. Ram Velaga sold 38,841 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The shares were 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 directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 373,049 shares of company stock valued at $123,024,715. 1.90% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On Broadcom
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Broadcom by 0.8% during the 4th 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 during the last quarter. State Street Corp lifted its holdings in Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after purchasing an additional 2,491,644 shares during the period. Finally, Norges Bank acquired a new position in shares of Broadcom in the fourth quarter valued at $24,252,196,000. Institutional investors own 76.43% of the company’s stock.
Broadcom Company Profile
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.
Further Reading
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