Broadcom (NASDAQ:AVGO) Stock Falls 1.1% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) traded down 1.1% during mid-day trading on Wednesday. The company traded as low as $350.69 and last traded at $351.19. Approximately 18,309,319 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 25,143,646 shares. The stock had previously closed at $355.10.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reportedly plans to provide Anthropic with up to $42 billion in financing to lease chips and fund AI infrastructure. The arrangement could support significant future demand for Broadcom’s custom AI accelerators, networking equipment and related infrastructure. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Anthropic’s IPO prospectus indicates Broadcom could become its largest customer next year. Anthropic has committed to approximately $125.2 billion of five-year TPU computing capacity, strengthening the outlook for Broadcom’s AI-related revenue growth. Broadcom Stock Rises. Anthropic and Broadcom Are Becoming More Intertwined.
• Neutral Sentiment: The financing may be convertible into Anthropic shares, potentially giving Broadcom equity upside if Anthropic’s valuation rises or it completes a successful IPO. However, the structure also links Broadcom’s returns to Anthropic’s ability to raise capital and expand profitably. Broadcom to provide Anthropic with up to $42 billion in financing
• Negative Sentiment: Investors are questioning the risk of a circular AI-investment arrangement: Broadcom would finance Anthropic, while Anthropic uses the funds to purchase or lease Broadcom-linked infrastructure. This raises concerns about customer concentration, credit exposure and whether reported AI demand is sustainable without continued external financing. Broadcom to lend Anthropic up to $42 billion to lease chips
• Negative Sentiment: Anthropic’s reported infrastructure obligations are extremely large—about $161.2 billion in Broadcom lease commitments and $518 billion overall—intensifying concerns about counterparty risk and the possibility of an AI-spending slowdown or “AI bubble.” Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

Analyst Ratings Changes

A number of equities research analysts have issued reports on AVGO shares. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Piper Sandler assumed coverage on Broadcom in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $460.00 price objective on the stock. DA Davidson set a $350.00 price objective on shares of Broadcom and gave the stock a “neutral” rating in a report on Friday, September 4th. Arete Research boosted their target price on shares of Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Finally, The Goldman Sachs Group upped their target price on shares of Broadcom from $525.00 to $540.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $527.20.

Broadcom Stock Down 2.1%

The stock’s fifty day simple moving average is $373.28 and its 200-day simple moving average is $380.85. 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 has a market cap of $1.64 trillion, a P/E ratio of 43.89 and a beta of 1.46.

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

Broadcom Announces Dividend

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

Insider Activity

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 51,890 shares of company stock valued at $20,241,368. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently made changes to their positions in AVGO. State Street Corp raised its stake in shares of Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after buying an additional 16,651,378 shares during the period. Bank of America Corp DE increased its stake in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after acquiring an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP lifted its position in Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after purchasing an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock valued at $15,178,195,000 after purchasing an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc purchased a new position in Broadcom during the second quarter worth $11,998,148,000. 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 products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.