Broadcom (NASDAQ:AVGO) Trading 3.9% Higher – Still a Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) shot up 3.9% during mid-day trading on Monday . The stock traded as high as $326.48 and last traded at $322.51. 26,847,924 shares changed hands during trading, a decline of 1% from the average session volume of 27,168,385 shares. The stock had previously closed at $310.51.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Volume shipping of the Tomahawk 6 switch ASIC begins, supporting Broadcom’s position in scaling AI networks and data-center spend. This strengthens near-term revenue cadence tied to AI infrastructure demand. Read More.
• Positive Sentiment: Broadcom is pushing an expanded AI infrastructure roadmap (3.5D XPU, 102.4T Ethernet switch/co-packaged optics) aimed at the 200T AI era, which supports long-term market share and pricing power in high-margin networking and ASICs. Read More.
• Positive Sentiment: Cantor Fitzgerald reaffirmed an Overweight rating with a $525 price target after Broadcom’s Q1 report and guidance, signaling continued analyst confidence in growth and margins. Read More.
• Positive Sentiment: Launch of Symantec CBX (Carbon Black XDR) expands Broadcom’s software/security offerings for enterprises and under-resourced SOC teams — a recurring-revenue play that diversifies beyond silicon. Read More.
• Neutral Sentiment: Macro/market tone: commentary that geopolitical tensions are easing is supporting broad tech rallies, which can lift high-beta semiconductor names like Broadcom alongside fundamentals. Read More.
• Neutral Sentiment: Several investor write-ups and “Is Broadcom a buy?” pieces highlight strong AI exposure and forecasts (management says AI sales will double in 2027), which supports sentiment but may already be priced in. Read More.
• Negative Sentiment: A trade group of European cloud providers filed an antitrust complaint with the European Commission over Broadcom/VMware licensing changes, alleging higher costs and restricted access — a regulatory/legal overhang that could affect VMware-related revenue in Europe and lead to fines or contract adjustments. Read More.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Morgan Stanley increased their price target on shares of Broadcom from $462.00 to $470.00 and gave the stock an “overweight” rating in a research report on Friday, March 6th. Bank of America lowered their price objective on Broadcom from $500.00 to $450.00 and set a “buy” rating for the company in a report on Thursday, March 5th. Oppenheimer upped their price objective on Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft set a $430.00 target price on Broadcom and gave the stock a “buy” rating in a research report on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $435.30.

Broadcom Stock Up 3.9%

The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The stock’s fifty day simple moving average is $330.43 and its 200-day simple moving average is $345.61. The stock has a market cap of $1.53 trillion, a P/E ratio of 62.99, a PEG ratio of 0.67 and a beta of 1.22.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business’s revenue was up 29.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.60 earnings per share. On average, research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be 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 is Monday, March 23rd. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the transaction, the insider directly owned 278,141 shares of the company’s stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Charlie B. Kawwas sold 39,116 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 528,970 shares of company stock valued at $177,150,321. Corporate insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Large investors have recently added to or reduced their stakes in the business. ROSS JOHNSON & Associates LLC lifted its holdings in Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the period. SWAN Capital LLC increased its stake in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares during the period. Longfellow Investment Management Co. LLC bought a new stake in shares of Broadcom during the 2nd quarter worth about $27,000. Teachers Insurance & Annuity Association of America bought a new stake in shares of Broadcom during the 2nd quarter worth about $28,000. Finally, JCIC Asset Management Inc. acquired a new stake in shares of Broadcom in the 3rd quarter worth approximately $31,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

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.