Broadcom (NASDAQ:AVGO) Trading Down 1.5% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) fell 1.5% during trading on Tuesday . The stock traded as low as $413.23 and last traded at $416.08. Approximately 12,802,467 shares were traded during trading, a decline of 49% from the average session volume of 25,248,197 shares. The stock had previously closed at $422.40.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: CEO Hock Tan reaffirmed that Broadcom’s fiscal 2027 AI semiconductor revenue should exceed $100 billion. AI semiconductor revenue already rose 143% year over year to $10.8 billion in fiscal second quarter, reinforcing expectations for substantial future growth. Hock Tan Reaffirmed Broadcom’s $100 Billion AI Forecast
• Positive Sentiment: AMD’s planned Helios rack-scale AI systems could benefit Broadcom as an ecosystem partner, adding another potential source of demand beyond the company’s hyperscale customers. AMD’s Helios Launch Could Create Winners Beyond AMD Stock
• Positive Sentiment: Analyst commentary highlights Broadcom’s exposure to custom accelerators, networking, cloud infrastructure and enterprise software, portraying its AI growth as diversified rather than dependent on one chip or computing architecture. Broadcom’s Brilliant Positioning
• Positive Sentiment: Broadcom expanded VMware Cloud Foundation security features, including faster vDefend deployment, on-premises malware sandboxing and API protection, supporting its enterprise software strategy. Broadcom Boosts VCF Security
• Neutral Sentiment: Investors are comparing Broadcom’s custom-chip model with NVIDIA’s more vertically integrated platform. The debate supports interest in AVGO but also underscores competition and execution risks within AI infrastructure. This Is Where Nvidia Beats Broadcom
• Negative Sentiment: Crake Asset Management reportedly sold 330,000 Broadcom shares, potentially adding short-term supply and signaling profit-taking by at least one institutional holder. Crake Asset Management Trims Broadcom Stake
• Negative Sentiment: The stock slipped following seven consecutive advancing sessions, suggesting some technical consolidation as investors lock in gains. Broadcom Slips After Seven-Session Advance

Analysts Set New Price Targets

Several analysts have issued reports on AVGO shares. TD Cowen restated a “buy” rating and set a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Truist Financial lifted their target price on Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Wells Fargo & Company reiterated an “overweight” rating and issued a $545.00 price target (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Mizuho raised their price objective on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research note on Thursday, June 4th. Twenty-eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Down 1.5%

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 stock’s fifty day simple moving average is $392.24 and its 200-day simple moving average is $371.22. The stock has a market cap of $1.98 trillion, a P/E ratio of 69.35, a PEG ratio of 0.82 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.58 earnings per share. On average, research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s payout ratio is currently 43.33%.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 61,644 shares of company stock valued at $24,016,214 in the last 90 days. Corporate insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new position in shares of Broadcom during the fourth quarter worth approximately $24,252,196,000. Bank of New York Mellon Corp acquired a new stake in Broadcom in the 2nd quarter valued at approximately $10,528,191,000. Deutsche Bank AG bought a new stake in Broadcom during the 2nd quarter valued at $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Broadcom during the 2nd quarter valued at $4,457,583,000. Finally, Cardano Risk Management B.V. boosted its position in Broadcom by 895.2% during the 4th 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 during the period. 76.43% of the stock is currently owned by institutional investors.

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.