Broadcom's (AVGO) Buy Rating Reiterated at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein reiterated its “buy” rating on Broadcom. Broadcom has a consensus “Moderate Buy” rating and an average analyst price target of $527.20.
• Broadcom shares fell 1.3% to $350.36, trading below both their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $1.67 trillion and a P/E ratio of 44.75.
• The company recently exceeded quarterly expectations, reporting $3.32 in EPS and $29.59 billion in revenue, with revenue rising 85.5% year over year. However, insiders sold more than 53,000 shares worth approximately $20.8 million during the latest quarter.

Broadcom (NASDAQ:AVGO - Get Free Report)'s stock had its "buy" rating restated by Sanford C. Bernstein in a report issued on Monday.

AVGO has been the topic of a number of other research reports. DA Davidson set a $350.00 price target on Broadcom and gave the company a "neutral" rating in a research note on Friday, September 4th. Piper Sandler began coverage on shares of Broadcom in a report on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 target price for the company. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Morgan Stanley restated an "overweight" rating and set a $505.00 price objective (up from $502.00) on shares of Broadcom in a research report on Thursday, September 3rd. Finally, Truist Financial reduced their price target on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research report on Thursday, September 3rd. One equities research 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. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $527.20.

Broadcom Stock Down 1.3%

Shares of Broadcom stock traded down $4.63 on Monday, reaching $350.36. The company's stock had a trading volume of 20,823,200 shares, compared to its average volume of 25,250,080. The company has a market capitalization of $1.67 trillion, a price-to-earnings ratio of 44.75 and a beta of 1.44. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. Broadcom has a 52 week low of $289.96 and a 52 week high of $495.00. The firm's fifty day simple moving average is $377.21 and its two-hundred day simple moving average is $380.26.

Broadcom (NASDAQ:AVGO - Get Free Report) last released 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. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. During the same period last year, the company earned $1.69 EPS. Equities analysts anticipate that Broadcom will post 10.36 earnings per share for the current year.

Insider Activity at Broadcom

In related news, Director Justine Page sold 1,602 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director directly owned 17,426 shares of the company's stock, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the 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 directly owned 194,989 shares of the company's stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,492 shares of company stock valued at $20,840,292 over the last quarter. 1.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fullerton Advisors LLC raised its stake in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co boosted its stake in 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 during the last quarter. RFG Holdings Inc. boosted its stake in Broadcom by 0.3% during 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 last quarter. Yukon Wealth Management Inc. grew its holdings in shares of 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 in the last quarter. Finally, NerdWallet Wealth Partners LLC grew its holdings in shares of Broadcom by 2.6% during the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after buying an additional 27 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip opportunity remains the primary bullish catalyst. Analysts and bullish investors point to hyperscaler partnerships, AI networking demand, and management’s projections for approximately $115 billion in AI semiconductor revenue in fiscal 2027 and $230 billion in fiscal 2028. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: Recent coverage also highlights Broadcom’s share-repurchase activity and AI-chip deals with major hyperscalers, reinforcing the view that the company can benefit as customers diversify beyond standard AI processors. Its software business and dividend-growth history provide additional long-term support. Broadcom Is Up 7.4% After Massive Buybacks and AI Chip Deals
• Neutral Sentiment: Broadcom’s valuation reflects substantial optimism, with a reported price-to-earnings ratio above 44 and the stock trading below its 50-day and 200-day moving averages. Analysts remain constructive, but the market is demanding strong execution against ambitious AI forecasts.
• Neutral Sentiment: Broader semiconductor sentiment has also been affected by higher Treasury yields, rising oil prices, and profit-taking after a strong market advance. These factors may be amplifying the reaction to company-specific news. Why Are Intel, AMD, and Broadcom Stocks Down?
• Negative Sentiment: China is reportedly surveying Broadcom switches used in state-backed data centers as Beijing encourages domestic semiconductor suppliers and reduces reliance on foreign technology. The review raises risks of lost Chinese business, tighter restrictions, and slower adoption of Broadcom’s networking products. China Surveys Broadcom Switch Use in State Data Centers
• Negative Sentiment: Investors are increasingly focused on whether Broadcom can convert its aggressive AI outlook into results while managing geopolitical exposure and elevated expectations. The China developments add a new risk to an AI thesis already priced for considerable growth. Broadcom: China Just Added a New Risk to the AI Story

Broadcom Company Profile

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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