Erste Group Bank Forecasts Reduced Earnings for Broadcom

Broadcom Inc. (NASDAQ:AVGO) – Research analysts at Erste Group Bank lowered their FY2027 EPS estimates for shares of Broadcom in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now forecasts that the semiconductor manufacturer will post earnings per share of $17.54 for the year, down from their previous estimate of $17.59. 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.

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 analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the business posted $1.69 EPS. Broadcom’s quarterly revenue was up 85.5% on a year-over-year basis.

Several other brokerages also recently commented on AVGO. Evercore set a $578.00 target price on shares of Broadcom and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Oppenheimer initiated coverage on shares of Broadcom in a research report on Tuesday. They issued a “buy” rating on the stock. Citic Securities raised shares of Broadcom to a “buy” rating and upped their target price for the stock from $450.00 to $525.00 in a research note on Tuesday, September 8th. Bank of America cut their price target on Broadcom from $530.00 to $460.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. Finally, TD Cowen reiterated a “buy” rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom presently has an average rating of “Moderate Buy” and an average target price of $530.52.

Broadcom Price Performance

NASDAQ:AVGO opened at $342.33 on Monday. Broadcom has a 1 year low of $289.96 and a 1 year high of $495.00. The stock has a 50-day moving average price of $354.48 and a two-hundred day moving average price of $366.99.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AVGO. Legal & General Group Plc bought a new stake in Broadcom in the second quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in Broadcom during the 2nd quarter valued at $10,528,191,000. Jupiter Topco LLC acquired a new stake in Broadcom during the 2nd quarter valued at $7,396,271,000. State Street Corp boosted its position in Broadcom by 8.7% during the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after purchasing an additional 16,651,378 shares during the period. Finally, Deutsche Bank AG acquired a new position in shares of Broadcom in the second quarter valued at $5,661,216,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A consortium including Bank of America, Blackstone, Citigroup and Morgan Stanley reportedly arranged up to $63 billion to finance Broadcom AI accelerators and networking equipment for Anthropic. The structure could provide significant demand visibility, while Truist estimates the arrangement could generate as much as $30 billion in Broadcom revenue with limited direct risk. Broadcom Anthropic financing article
• Positive Sentiment: Anthropic’s IPO filing highlighted approximately $224.5 billion of non-cancelable compute commitments with Amazon and Alphabet. Investors viewed the spending requirements as an indirect tailwind for Broadcom’s custom AI chips, application-specific processors and networking products. Anthropic IPO filing article
• Positive Sentiment: D.A. Davidson upgraded AVGO from Neutral to Buy and raised its price target from $350 to $400, citing sustained AI spending and upcoming AI-company IPOs. Rosenblatt also reaffirmed a Buy rating with a $600 target. D.A. Davidson upgrade article
• Positive Sentiment: Fitch affirmed Broadcom’s A- issuer rating with a Positive outlook, citing strong cash generation and expectations that core EBITDA leverage will remain below the agency’s upgrade threshold. Fitch rating article
• Neutral Sentiment: Broadcom released fixes for 89 vulnerabilities in its TrueSource Spring Enterprise software, supporting its infrastructure-software business and customer relationships, though the announcement is unlikely to materially affect near-term earnings. Broadcom TrueSource announcement
• Negative Sentiment: Bearish concerns remain: rising AI mix may pressure margins, supply constraints could limit growth, and revenue is increasingly concentrated among a small number of customers. Analysts have also cut estimates, while Broadcom’s uncapped off-balance-sheet guarantees create additional financing and execution risk. Broadcom risk analysis
• Negative Sentiment: Alphabet’s efforts to diversify TPU suppliers, along with weakness in Broadcom’s non-AI businesses, could challenge the company’s long-term customer concentration and valuation assumptions. Reported insider activity has also been heavily weighted toward sales, adding a modest sentiment headwind.

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 data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.