Broadcom (NASDAQ:AVGO) Stock Falls 1.9% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) fell 1.9% during mid-day trading on Thursday. The company traded as low as $338.80 and last traded at $345.00. Approximately 16,665,480 shares were traded during mid-day trading, a decline of 33% from the average session volume of 24,806,801 shares. The stock had previously closed at $351.81.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst support improved. DA Davidson upgraded Broadcom to “Buy,” while Rosenblatt Securities reaffirmed its Buy rating and assigned a $600 price target. Analysts cited Broadcom’s custom AI accelerator opportunity and long-term growth potential. DA Davidson Upgrades Broadcom to Buy
• Positive Sentiment: The Anthropic transaction reinforces demand for Broadcom’s AI hardware. A proposed $63 billion financing vehicle would purchase Broadcom AI racks and lease them to Anthropic, providing a significant potential sales channel. Separately, Meta’s planned AI capital raise could benefit Broadcom if it becomes a cornerstone investor and supplier. Broadcom Anthropic Deal
• Positive Sentiment: Growth expectations remain ambitious. Investor commentary highlights Broadcom’s projected AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Articles also argue that expanding data-center spending, custom chips and networking demand could support the stock through 2030. Three AI Stocks to Buy and Hold Through 2030
• Neutral Sentiment: The main debate is valuation versus growth. Some analysts view the pullback as an attractive entry point and believe Broadcom remains inexpensive relative to its long-term potential. However, consensus targets above the recent trading range depend on continued exceptional AI growth and successful execution.
• Negative Sentiment: The Anthropic financing structure creates additional risk. Broadcom could face as much as $43 billion in backstop exposure if the asset-financing arrangement fails, although Fitch maintained an A- rating with a positive outlook, citing strong cash generation and manageable leverage. Broadcom Anthropic Financing Risks
• Negative Sentiment: Investors remain concerned about concentration and macroeconomic pressure. Broadcom’s AI growth depends heavily on a small group of customers, while supply constraints, margin pressure, rising interest rates and fears of excessive AI infrastructure spending could compress its valuation.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Erste Group Bank lowered shares of Broadcom from a “buy” rating to a “hold” rating in a research report on Tuesday, July 7th. Truist Financial lowered their price objective on Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. Wedbush started coverage on Broadcom in a research note on Tuesday. They set an “outperform” rating on the stock. TD Cowen reissued a “buy” rating and issued a $475.00 price objective (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Piper Sandler began coverage on shares of Broadcom in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $460.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $530.52.

Broadcom Trading Down 1.9%

The stock has a market cap of $1.65 trillion, a PE ratio of 44.06 and a beta of 1.46. 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 firm has a 50-day moving average price of $353.92 and a 200-day moving average price of $367.09.

Broadcom (NASDAQ:AVGO) last issued 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 during the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business’s quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.69 earnings per share. As a group, equities analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently modified their holdings of the company. Networth Advisors LLC raised its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the last quarter. Core Capital Management & Research inc. acquired a new stake in Broadcom during the 2nd quarter valued at $31,000. DecisionPoint Financial LLC grew its holdings in Broadcom by 101.9% during the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock valued at $36,000 after buying an additional 53 shares during the last quarter. Harborfront Financial Group LLC purchased a new position in Broadcom during the second quarter worth $38,000. Finally, Align Financial LLC raised its holdings in shares of Broadcom by 67.2% in the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock worth $38,000 after acquiring an additional 45 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

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.