Broadcom (NASDAQ:AVGO) Shares Up 2.2% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) rose 2.2% during mid-day trading on Tuesday . The stock traded as high as $390.58 and last traded at $386.50. 16,549,243 shares changed hands during trading, a decline of 36% from the average daily volume of 26,015,506 shares. The stock had previously closed at $378.16.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: UBS said the recent AI and semiconductor selloff may be nearing exhaustion, suggesting investors could gradually rebuild positions in stocks like Broadcom. The note points to heavy hedge fund de-risking as a potential sign that much of the forced selling is already behind the sector. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why
• Positive Sentiment: Several reports highlighted Broadcom as a leader in the chip rebound, with semiconductor stocks rallying as investors bought back into AI names after recent weakness. Morgan Stanley also reiterated Broadcom as one of its preferred ways to play AI infrastructure spending, citing strong cash generation and attractive risk-reward. Broadcom stock gains 2% today: here’s why
• Positive Sentiment: Zacks said Broadcom’s VMware Cloud Foundation business is becoming a growth engine as enterprises modernize private clouds for AI and virtualized workloads, which supports the company’s software growth story beyond chips. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead?
• Positive Sentiment: Broadcom also announced a major Standard Chartered deal to power banking cloud infrastructure across 54 markets, reinforcing the company’s enterprise software momentum and long-term recurring revenue potential. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets
• Neutral Sentiment: Some commentary remains mixed, with one report noting that an AI-focused stock picker sold Broadcom after its expected return outlook weakened. That reflects valuation discipline more than a fundamental deterioration, but it can still temper near-term enthusiasm. Claude AI Sells Broadcom (AVGO) Stock
• Negative Sentiment: Sentiment was also pressured by a U.S. ITC investigation tied to a Netlist patent complaint that includes Broadcom among several affected companies, adding headline risk around potential legal and regulatory overhang. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment?

Wall Street Analyst Weigh In

Several research analysts recently commented on AVGO shares. TD Cowen reiterated a “buy” rating and set a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Bank of America upped their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Mizuho upped their price target on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Finally, KeyCorp reiterated an “overweight” rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Trading Up 2.2%

The company’s fifty day moving average is $400.28 and its two-hundred day moving average is $365.62. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company has a market cap of $1.84 trillion, a price-to-earnings ratio of 64.42, a P/E/G ratio of 0.65 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.58 EPS. On average, research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Insider Buying and Selling at Broadcom

In other news, Director Justine Page sold 1,602 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company’s stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Harry L. You bought 1,000 shares of the stock in a transaction dated Thursday, June 11th. The stock was bought at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the purchase, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of AVGO. Fullerton Advisors LLC boosted its holdings in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after acquiring an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its holdings in shares of Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after purchasing an additional 25 shares during the period. RFG Holdings Inc. raised its holdings in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after purchasing an additional 26 shares during the period. Yukon Wealth Management Inc. lifted its stake in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after purchasing an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC grew its holdings in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after purchasing an additional 27 shares during the period. 76.43% of the stock is 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.