Broadcom (NASDAQ:AVGO) Stock Rating Upgraded by Piper Sandler

Key Points

• Piper Sandler upgraded Broadcom to “strong buy,” adding to a broadly bullish analyst outlook. Broadcom has an average “Moderate Buy” rating and a consensus price target of $505.97.
• Broadcom exceeded quarterly expectations, reporting $3.32 in EPS and $29.59 billion in revenue, up 85.5% year over year. The stock opened at $360.83, down 1.0%, and remains below its 50- and 200-day moving averages.
• AI remains the company’s key growth driver, with record AI semiconductor revenue and major custom-chip and networking demand from hyperscalers. However, near-term revenue guidance, elevated valuation, competition, and recent insider selling remain risks.

Broadcom (NASDAQ:AVGO - Get Free Report) was upgraded by stock analysts at Piper Sandler to a "strong-buy" rating in a research note issued on Wednesday, Zacks reports.

AVGO has been the topic of several other reports. Oppenheimer reaffirmed an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. BMO Capital Markets increased their price objective on Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a report on Thursday, September 3rd. KeyCorp reissued an "overweight" rating and issued a $575.00 price objective on shares of Broadcom in a research report on Thursday, September 3rd. Wall Street Zen downgraded Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $475.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus price target of $505.97.

Broadcom Stock Down 1.0%

NASDAQ:AVGO opened at $360.83 on Wednesday. The company's 50-day simple moving average is $383.00 and its 200-day simple moving average is $378.43. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. Broadcom has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The stock has a market capitalization of $1.72 trillion, a P/E ratio of 46.08 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the previous year, the business posted $1.69 EPS. Broadcom's revenue was up 85.5% on a year-over-year basis. On average, equities analysts anticipate that Broadcom will post 10.36 earnings per share for the current fiscal year.

Insider Activity at Broadcom

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction dated Friday, July 10th. The stock was 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 in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 61,644 shares of company stock worth $24,016,214 over the last three months. Company insiders own 1.90% of the company's stock.

Institutional Trading of Broadcom

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

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported record AI semiconductor revenue of approximately $16.7 billion and projected that the business could generate about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Custom AI accelerators and networking products are benefiting from heavy spending by hyperscalers. Broadcom Q3 2026 earnings call transcript
• Positive Sentiment: OpenAI’s selection of Broadcom for its first custom AI chip reinforces the company’s position as a key supplier to major AI developers. OpenAI’s planned $750 billion of compute infrastructure spending through 2030 could expand the addressable market for Broadcom’s chips and connectivity technology. OpenAI compute spending article
• Positive Sentiment: Several analysts and investment articles continue to argue that Broadcom’s custom-silicon and networking exposure could support substantial long-term earnings growth, with some bullish scenarios implying a share price near $900. Wall Street’s broader outlook remains constructive despite the recent pullback. Wall Street Broadcom price target article
• Neutral Sentiment: Reported short-interest data shows zero shares sold short and a zero-day days-to-cover ratio, offering no meaningful evidence that short sellers are driving the stock’s recent weakness.
• Negative Sentiment: Broadcom’s fiscal fourth-quarter revenue outlook reportedly fell short of Wall Street expectations. That softer near-term forecast led Truist to reduce its price target, highlighting a mismatch between rapidly rising long-term AI projections and nearer-term revenue timing. Truist cuts Broadcom price target
• Negative Sentiment: Investors are also focused on valuation and competitive risks, including potential AI-chip efforts by Google, Samsung, and other suppliers. Rising Treasury yields make high-multiple growth stocks less attractive and increase the market’s demand for continued earnings beats.

About Broadcom

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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