Broadcom (NASDAQ:AVGO) Trading Down 4.6% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price was down 4.6% on Wednesday . The stock traded as low as $357.61 and last traded at $362.48. Approximately 34,805,793 shares changed hands during trading, an increase of 38% from the average session volume of 25,180,193 shares. The stock had previously closed at $380.00.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI financing could expand future revenue: Broadcom is reportedly discussing a $70 billion–$80 billion debt raise, potentially reaching as much as $100 billion, to finance AI chips supplied to Anthropic and other customers. The arrangement could support large, long-term chip commitments and reinforce Broadcom’s position in AI infrastructure. Broadcom debt deal expected to reach upwards of $70 billion, sources say
• Positive Sentiment: Strong AI growth narrative remains intact: Management has cited approximately $30 billion in quarterly AI bookings and is targeting more than $100 billion in AI sales by 2027. These figures support the view that demand for Broadcom’s custom accelerators and networking products remains substantial. Broadcom’s AI Boom: Is a 2x Stock Gain Still Within Reach?
• Positive Sentiment: Analysts remain optimistic: BMO initiated coverage with an “outperform” rating and a $455 price target, implying substantial upside from recent trading levels. Other analysts, including TD Cowen, also continue to see meaningful upside after the selloff. Broadcom Stock Picks Up Another Lofty Bull Note
• Neutral Sentiment: Financing brings both opportunity and risk: A debt-funded expansion could create sizable AI revenue, but borrowings of $70 billion or more would increase leverage and financial risk. Investors will likely focus on the terms, customer commitments and cash-flow implications.
• Negative Sentiment: Marvell is challenging Broadcom’s custom-chip leadership: Marvell’s agreement with Alphabet’s Google covers custom silicon tied to the TPU ecosystem, including inference accelerators and networking components. Google also received warrants that could vest based on up to $120 billion of future Marvell product purchases, raising concern that Broadcom could lose share at its largest custom-AI-chip customer. Marvell Constructs an AI Moat With Alphabet Warrants
• Negative Sentiment: Guidance is the key upcoming catalyst: Broadcom’s failure to raise fiscal 2027 AI semiconductor guidance previously pressured the stock. Investors may remain cautious until earnings clarify whether competition is affecting its growth outlook.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Erste Group Bank restated a “hold” rating on shares of Broadcom in a research report on Tuesday, July 7th. KeyCorp reaffirmed an “overweight” rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Susquehanna reiterated a “positive” rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, Mizuho increased their price objective on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research report on Thursday, June 4th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $491.97.

Broadcom Stock Performance

The company has a market cap of $1.75 trillion, a P/E ratio of 61.39, a price-to-earnings-growth ratio of 0.69 and a beta of 1.45. The company’s fifty day moving average is $388.84 and its 200 day moving average is $374.84. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the previous year, the firm posted $1.58 earnings per share. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s payout ratio is 43.33%.

Insider Buying and Selling

In other news, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently modified their holdings of the company. ROSS JOHNSON & Associates LLC grew its position in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 66 shares during the last quarter. SWAN Capital LLC raised its holdings in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 55 shares in the last quarter. Networth Advisors LLC raised its holdings in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 71 shares in the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom in the fourth quarter worth $33,000. Finally, Harborfront Financial Group LLC purchased a new stake in Broadcom in the second quarter worth $38,000. Hedge funds and other 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.