Broadcom (NASDAQ:AVGO) Stock Price Up 3% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price shot up 3% on Friday . The stock traded as high as $363.28 and last traded at $357.6680. Approximately 43,838,015 shares were traded during mid-day trading, an increase of 73% from the average daily volume of 25,319,012 shares. The stock had previously closed at $347.30.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip opportunity remains the central bullish catalyst. Management expects AI semiconductor revenue to reach approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, suggesting substantial growth from hyperscaler demand for application-specific chips and networking technology. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: Several reports characterize AVGO as a potential beneficiary of the next phase of AI spending, as customers seek alternatives to Nvidia’s GPUs to improve computing costs, power efficiency, and control. Some commentators believe Broadcom could gain share as Nvidia’s dominance eventually moderates. Here’s When Nvidia’s Dominance Fades, Opening Broadcom’s Era of Dominance
• Positive Sentiment: Jim Cramer called Broadcom potentially “too cheap to ignore” after its roughly 30% retreat from its peak. Other analysts and investment articles likewise argue that strong AI growth, repeated earnings beats, and a lower valuation have improved the risk-reward profile. Jim Cramer on Broadcom: The Stock May Be Too Cheap to Ignore
• Positive Sentiment: Broadcom’s chief executive, Hock Tan, reportedly expressed little concern about recent AI “extinction” fears, reinforcing the company’s confidence in sustained customer demand and its long-term AI strategy. Broadcom CEO Hock Tan Says He Isn’t Worried
• Neutral Sentiment: Investor attention is elevated as markets weigh whether Broadcom’s strong AI orders and forecasts will translate into near-term share-price gains. The stock remains below its 50-day and 200-day moving averages, highlighting continued technical pressure despite the fundamental optimism. Investors Want to Know When Broadcom’s Custom Hyperscaler Chips Will Move Share Prices
• Negative Sentiment: Risks include evidence that major customers such as Meta may use more internally developed AI chips, potentially reducing reliance on third-party suppliers. In addition, data on enterprise demand for VMware private-cloud software is mixed, making the software-growth thesis less certain. Enterprise AI to Boost Broadcom’s Software Business

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of recent research reports. Royal Bank Of Canada started coverage on shares of Broadcom in a report on Thursday, September 3rd. They issued an “outperform” rating for the company. BMO Capital Markets lifted their price objective on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. Susquehanna restated a “positive” rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Piper Sandler assumed coverage on Broadcom in a report on Wednesday, September 9th. They set an “overweight” rating and a $460.00 price target on the stock. Finally, TD Cowen reissued a “buy” rating and set a $475.00 price target (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $509.04.

Broadcom Trading Up 3.0%

The business has a 50-day simple moving average of $379.76 and a 200-day simple moving average of $379.16. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.71 trillion, a PE ratio of 45.68 and a beta of 1.44.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom’s revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.69 EPS. On average, analysts predict that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a dividend of $0.65 per share. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio is 33.21%.

Insider Activity at Broadcom

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,492 shares of company stock valued at $20,840,292 over the last 90 days. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

A number of institutional investors have recently bought and sold shares of AVGO. Norges Bank acquired a new position in Broadcom in the fourth quarter valued at $24,252,196,000. Legal & General Group Plc acquired a new stake in shares of Broadcom during the second quarter worth about $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $10,528,191,000. Jupiter Topco LLC purchased a new position in Broadcom during the 2nd quarter worth approximately $7,396,271,000. Finally, Deutsche Bank AG purchased a new position in Broadcom during the 2nd quarter worth approximately $5,661,216,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.