Broadcom (NASDAQ:AVGO) Shares Gap Up – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $314.43, but opened at $326.73. Broadcom shares last traded at $323.9810, with a volume of 6,103,585 shares changing hands.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Long-term Google deal — Broadcom signed a multi-year agreement to design and supply custom AI processors and data‑center components to Google through 2031, locking in an important hyperscaler customer and revenue runway. Broadcom signs long-term deal to develop Google’s custom AI chips (Reuters)
• Positive Sentiment: Expanded Anthropic collaboration — Broadcom will also supply additional computing capacity (via Google infrastructure) to Anthropic, broadening its role in the AI stack and driving incremental near‑term revenue for chips and services. Broadcom to Supply AI Chips to Google, Computing Capacity to Anthropic (WSJ)
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a “buy” rating and set a $500 price target, reinforcing bullish expectations for Broadcom’s AI growth potential and adding momentum to the stock. Rosenblatt reaffirms buy on Broadcom (Benzinga)
• Neutral Sentiment: Wall Street/media commentary — Multiple outlets and wealth managers are highlighting Broadcom as a key AI play and covering the deals, which is supporting positive investor sentiment but not new fundamental data on margins or guidance. Broadcom shares jump before the bell as chipmaker agrees Google and Anthropic deals (CNBC)
• Neutral Sentiment: Macro/valuation context — Broadcom still trades well above longer‑term troughs but remains below its December highs; investors will be watching how these deals translate into official guidance and margin expansion. CEO sees $100B AI revenue potential (The Motley Fool)
• Negative Sentiment: Analyst downgrade on software growth — Erste Group recently cut Broadcom from Buy to Hold citing concerns about the firm’s software-segment growth outlook, a reminder that parts of Broadcom’s business face slower trajectories and could cap near‑term upside. Broadcom downgraded over software growth concerns (Yahoo Finance)

Analyst Upgrades and Downgrades

Several research firms recently commented on AVGO. UBS Group set a $475.00 price objective on Broadcom and gave the company a “buy” rating in a research report on Monday, December 15th. Oppenheimer increased their target price on Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a report on Friday, December 12th. Bank of America lowered their target price on Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a report on Thursday, March 5th. Citigroup increased their target price on Broadcom from $458.00 to $475.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Finally, Robert W. Baird set a $420.00 target price on Broadcom in a report on Friday, December 12th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Stock Performance

The business has a fifty day simple moving average of $324.52 and a two-hundred day simple moving average of $342.80. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The company has a market cap of $1.54 trillion, a P/E ratio of 63.82, a P/E/G ratio of 0.67 and a beta of 1.24.

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

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were paid a dividend of $0.65 per share. The ex-dividend date was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s payout ratio is 50.78%.

Insider Activity

In related news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the sale, the insider directly owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares of the company’s stock, valued at $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 273,049 shares of company stock valued at $88,300,115. 1.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. ROSS JOHNSON & Associates LLC raised its stake in Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares during the period. SWAN Capital LLC raised 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 purchasing an additional 55 shares during the period. Teachers Insurance & Annuity Association of America bought a new stake in Broadcom during the 2nd quarter valued at approximately $28,000. JCIC Asset Management Inc. bought a new stake in Broadcom during the 3rd quarter valued at approximately $31,000. Finally, Miller Global Investments LLC bought a new stake in Broadcom during the 4th quarter valued at approximately $31,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.