Broadcom (NASDAQ:AVGO) Shares Up 3.1% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 3.1% during mid-day trading on Tuesday. The stock traded as high as $335.74 and last traded at $332.13. 16,867,200 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 24,777,615 shares. The stock had previously closed at $322.23.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom was among chip stocks rising in a broader semiconductor rally, alongside gains in Nvidia and AMD. The article notes that concern about potential Chinese chip competition did not deter buyers. NVIDIA Rises 3% Despite AI CEO’s Warning on Chinese Chip Competition; AMD Climbs 5%, Broadcom Gains 3%
• Positive Sentiment: ETF flows were a potential source of support: funds bought a net $183.8 million of Broadcom shares on Friday, with 48 funds buying and 30 selling. ETFs Bought $183.8 Million of Broadcom (AVGO) on Friday
• Positive Sentiment: Several articles point to long-term AI growth potential: Broadcom’s AI-chip revenue is described as tripling year over year, while other coverage highlights anticipated growth in 2027 and demand for custom AI processors. These themes reinforce the bull case, though they are forward-looking commentary. Broadcom Stock Is Up 2,500% in 10 Years. Can the AI Boom Keep It Going? While the Rest of the Market Focuses on the Anthropic IPO, These Are My Top 2 Stocks to Buy in November
• Neutral Sentiment: One comparison favors TSMC for its diversified role manufacturing chips for several major customers, contrasting with Broadcom’s reliance on customers continuing to develop their own processors. This highlights a business risk rather than a new change in fundamentals. Taiwan Semi or Broadcom: If I Could Only Own 1 for the Next 5 Years, It Would Be This
• Negative Sentiment: Valuation remains a concern: one analysis argues Broadcom is a strong company but not attractive at its current price. That could limit upside if anticipated AI growth is already reflected in the shares. Broadcom: Great Company, Not A Great Price

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of recent analyst reports. Oppenheimer began coverage on shares of Broadcom in a research note on Tuesday, October 27th. They set a “buy” rating on the stock. Royal Bank Of Canada assumed coverage on Broadcom in a research note on Thursday, September 3rd. They issued an “outperform” rating for the company. Raymond James Financial reiterated an “outperform” rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. Truist Financial decreased their price target on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating for the company in a report on Thursday, September 3rd. Finally, JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Broadcom in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $530.52.

Broadcom Stock Performance

The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The stock has a fifty day moving average price of $351.88 and a 200-day moving average price of $366.79. The firm has a market capitalization of $1.59 trillion, a price-to-earnings ratio of 42.42 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. Broadcom’s revenue for the quarter was up 85.5% on a year-over-year basis. During the same period in the prior year, the company earned $1.69 EPS. As a group, analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Hedge Funds Weigh In On Broadcom

Several hedge funds have recently made changes to their positions in AVGO. Cornerstone Advisors LLC purchased a new position in Broadcom during the 2nd quarter valued at $92,522,000. GAMMA Investing LLC boosted its holdings in Broadcom by 8.8% in the third quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer’s stock worth $55,889,000 after acquiring an additional 13,317 shares in the last quarter. ANB Bank purchased a new stake in Broadcom during the 3rd quarter worth approximately $1,181,000. Bank of America Corp DE increased its position in shares of Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after acquiring an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC acquired a new stake in shares of Broadcom during the second quarter worth about $3,302,000. 76.43% of the stock is owned by institutional investors.

Broadcom Company Profile

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.