Broadcom (NASDAQ:AVGO) Trading Down 3.3% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) shares were down 3.3% during mid-day trading on Tuesday . The company traded as low as $308.65 and last traded at $320.33. Approximately 36,485,880 shares traded hands during trading, an increase of 41% from the average daily volume of 25,798,994 shares. The stock had previously closed at $331.11.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Strong AI demand and positioning — Multiple outlets cite Broadcom as a key beneficiary of the custom AI chip boom and growing AI semiconductor demand, supporting durable revenue opportunities. Broadcom (AVGO) Cited As Top Compute Stock Amid Strong AI Semiconductor Demand
• Positive Sentiment: Analyst upgrades and bullish outlooks — Wolfe Research upgraded Broadcom and other coverage/notes highlight market-share gains and analyst upgrades, which can support upside momentum. Broadcom (NASDAQ:AVGO) Upgraded at Wolfe Research
• Positive Sentiment: Wall Street upside estimates — Recent coverage points to significant analyst upside (one note cites ~38% upside), reinforcing a bullish consensus that could attract buyers on weakness. Wall Street Projects 38% Upside To Broadcom Inc. (AVGO)
• Positive Sentiment: Repeated earnings-beat track record — Research pieces (Zacks) flag Broadcom’s history of topping estimates and give it a favorable setup heading into the next report, which could support a rebound if results surprise again. Will Broadcom Inc. (AVGO) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Earnings date set — Broadcom confirmed its Q1 fiscal 2026 results will be released March 4 after the close; the upcoming report increases near-term event risk/volatility. Broadcom Inc. to Announce First Quarter Fiscal Year 2026 Financial Results on Wednesday, March 4, 2026
• Neutral Sentiment: Coverage pieces recommending Broadcom as an AI play — Several investor-focused articles list AVGO among top AI/compute names to own; useful for longer-term thesis but not immediate catalysts. 2 Stocks Powering OpenAI’s and Anthropic’s Revenue Surge in 2026
• Negative Sentiment: Short-term pullback and valuation concerns — Several pieces focus on a recent pullback and valuation re-check after strong multi-year returns; that narrative likely drove today’s selling and heavier-than-normal volume. Broadcom (AVGO) Valuation Check After Short Term Pullback And Strong Multi Year Returns
• Negative Sentiment: “Shares slide” coverage fueling caution — Headlines asking if AVGO is a buy on the dip can accelerate selling as traders lock gains; combined with elevated volume, this likely pressured the stock today. As Broadcom Shares Slide, Is AVGO Stock a Buy on the Dip?
• Neutral Sentiment: Short interest data appears unreliable — Recent short-interest entries show zero shares/NaN changes (likely a data error); treat any short-interest narrative with caution until clarified.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of research reports. Citigroup restated a “buy” rating on shares of Broadcom in a research report on Thursday, January 15th. Robert W. Baird set a $420.00 price objective on shares of Broadcom in a report on Friday, December 12th. The Goldman Sachs Group restated a “buy” rating and set a $450.00 price objective on shares of Broadcom in a research report on Monday, January 5th. Royal Bank Of Canada began coverage on Broadcom in a research report on Wednesday, January 14th. They issued a “sector perform” rating and a $370.00 target price on the stock. Finally, Raymond James Financial set a $420.00 price target on Broadcom and gave the company an “outperform” rating in a report on Thursday, November 20th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $437.28.

Broadcom Price Performance

The firm has a market capitalization of $1.52 trillion, a P/E ratio of 67.30, a price-to-earnings-growth ratio of 1.10 and a beta of 1.21. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76. The firm has a 50 day moving average price of $354.83 and a 200-day moving average price of $338.34.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the prior year, the firm posted $1.42 EPS. Broadcom’s quarterly revenue was up 28.2% compared to the same quarter last year. On average, analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, December 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio is presently 54.62%.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 30,000 shares of the stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $347.12, for a total value of $10,413,600.00. Following the sale, the insider directly owned 210,573 shares in the company, valued at approximately $73,094,099.76. This represents a 12.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Charlie B. Kawwas sold 1,928 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $327.80, for a total value of $631,998.40. Following the sale, the insider directly owned 23,582 shares of the company’s stock, valued at $7,730,179.60. This represents a 7.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 779,901 shares of company stock worth $284,069,237 over the last three months. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Broadcom

A number of hedge funds and other institutional investors have recently bought and sold shares of AVGO. Longfellow Investment Management Co. LLC purchased a new position in shares of Broadcom during the second quarter worth approximately $27,000. Teachers Insurance & Annuity Association of America bought a new position in Broadcom in the second quarter worth approximately $28,000. LGT Financial Advisors LLC bought a new position in Broadcom in the second quarter worth approximately $31,000. New England Capital Financial Advisors LLC purchased a new position in Broadcom during the 2nd quarter worth $31,000. Finally, JCIC Asset Management Inc. bought a new stake in Broadcom during the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

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.