Broadcom Stock Gets Lower EPS Forecast from Erste Group Bank

Broadcom Inc. (NASDAQ:AVGO) – Investment analysts at Erste Group Bank reduced their FY2027 earnings per share (EPS) estimates for Broadcom in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the semiconductor manufacturer will earn $17.54 per share for the year, down from their previous forecast 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.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings raised shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Jefferies Financial Group started coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued a “buy” rating and a $550.00 price objective on the stock. BNP Paribas Exane increased their target price on shares of Broadcom from $675.00 to $715.00 and gave the stock an “outperform” rating in a report on Friday, September 4th. Rosenblatt Securities started coverage on shares of Broadcom in a report on Thursday, September 3rd. They set a “buy” rating and a $600.00 target price for the company. Finally, President Capital raised their target price on shares of Broadcom from $520.00 to $546.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $529.17.

Broadcom Trading Up 2.3%

NASDAQ AVGO opened at $329.17 on Monday. Broadcom has a 52 week low of $289.96 and a 52 week high of $495.00. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The stock’s 50 day moving average price is $356.76 and its two-hundred day moving average price is $367.07. The stock has a market capitalization of $1.57 trillion, a price-to-earnings ratio of 37.54 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data 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. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period last year, the company earned $1.69 earnings per share. Broadcom’s quarterly revenue was up 85.5% on a year-over-year basis.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Fullerton Advisors LLC raised its position in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after buying an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co grew its position in Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after acquiring an additional 25 shares during the period. Yukon Wealth Management Inc. grew its position in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after acquiring an additional 26 shares during the period. NerdWallet Wealth Partners LLC grew its position in Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after acquiring an additional 27 shares during the period. Finally, Veery Capital LLC increased its stake in Broadcom by 1.4% during the second quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock worth $718,000 after acquiring an additional 27 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A coalition of banks and Blackstone is reportedly arranging a $63 billion financing vehicle to purchase AI-computing infrastructure from Broadcom and lease it to Anthropic. The proposed transaction would provide a potentially significant source of demand and revenue visibility. Banks, Blackstone Form $63 Billion Financing Vehicle for Broadcom AI Tech
• Positive Sentiment: Anthropic’s IPO filing disclosed approximately $224.5 billion of non-cancelable compute commitments with Amazon and Alphabet. The scale of those commitments supports continued spending on custom AI accelerators and networking equipment supplied or co-designed by Broadcom. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Reports highlight unusually heavy call-option activity and argue that Broadcom’s custom AI chips are gaining popularity among major AI companies. Bullish commentary also points to strong projected growth in custom silicon and networking through 2030. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Neutral Sentiment: Broadcom’s stock is being described as potentially attractive after reaching a six-month low, although investors remain focused on whether future AI growth is already reflected in its premium valuation. Broadcom Is At a 6-Month Low – Is AVGO Stock Too Cheap?
• Negative Sentiment: Alphabet is reportedly diversifying its TPU suppliers to include MediaTek, raising concerns that Broadcom could lose some custom-chip business. Growing demand from Anthropic and OpenAI may offset that risk, but supplier diversification remains an important competitive threat. Broadcom’s AI Chip Business Is Booming, But Alphabet’s Strategy Highlights 2 Key Risks
• Negative Sentiment: Concerns that debt-market funding for AI data centers is tightening could slow infrastructure construction and customer spending. Separately, Erste Group Bank cut its earnings estimates for Broadcom, adding near-term pressure to expectations.

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.