Broadcom (NASDAQ:AVGO) Given New $530.00 Price Target at Bank of America

Key Points

• Bank of America raised Broadcom’s price target from $450 to $530 and kept a buy rating, implying about 25% upside from the current share price.
• Broadcom’s latest quarter beat expectations, with EPS of $2.44 and revenue of $22.19 billion, while revenue rose 47.9% year over year.
• The stock traded lower despite the upbeat results, closing at $423.88 on heavy volume as investors reacted to concerns that AI-related guidance may not have matched the market’s most aggressive expectations.

Broadcom (NASDAQ:AVGO - Get Free Report) had its target price increased by investment analysts at Bank of America from $450.00 to $530.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor manufacturer's stock. Bank of America's price target suggests a potential upside of 25.04% from the company's current price.

A number of other analysts have also recently commented on AVGO. TD Cowen reiterated a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research note on Thursday. Wells Fargo & Company reissued an "overweight" rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. DA Davidson boosted their target price on Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a report on Thursday. Truist Financial boosted their target price on Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Wall Street Zen lowered Broadcom from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Stock Performance

AVGO stock traded down $55.35 during trading hours on Thursday, reaching $423.88. The stock had a trading volume of 58,054,140 shares, compared to its average volume of 25,086,932. The stock has a market capitalization of $2.01 trillion, a PE ratio of 83.05, a price-to-earnings-growth ratio of 0.99 and a beta of 1.41. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The stock has a 50-day simple moving average of $392.87 and a 200 day simple moving average of $361.19. Broadcom has a fifty-two week low of $241.11 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.58 earnings per share. Analysts predict that Broadcom will post 9.91 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider S. Ram Velaga sold 8,000 shares of the business's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares in the company, valued at $21,464,964.64. The trade was a 12.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the transaction, the insider directly owned 787,184 shares in the company, valued at approximately $271,759,532.32. This represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 over the last three months. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently bought and sold shares of AVGO. Brighton Jones LLC increased its position in Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after acquiring an additional 5,322 shares during the period. Revolve Wealth Partners LLC lifted its position in shares of Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after acquiring an additional 756 shares during the period. United Bank lifted its position in shares of Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock valued at $392,000 after acquiring an additional 1,014 shares during the period. Sivia Capital Partners LLC lifted its position in shares of Broadcom by 10.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock valued at $3,499,000 after acquiring an additional 1,160 shares during the period. Finally, Capital & Planning LLC lifted its position in shares of Broadcom by 10.5% during the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock valued at $1,098,000 after acquiring an additional 378 shares during the period. 76.43% of the stock is owned by institutional investors.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom beat fiscal Q2 earnings estimates and posted record revenue of $22.2 billion, with AI semiconductor revenue jumping sharply year over year, underscoring continued demand for its custom AI chips and networking products.
• Positive Sentiment: The company issued a strong fiscal Q3 revenue guide of about $29.4 billion, above Wall Street expectations, suggesting the core business and AI demand remain healthy.
• Positive Sentiment: Several analysts raised price targets after the report, including JPMorgan, Deutsche Bank, Benchmark, Truist, and others, signaling continued long-term confidence in Broadcom’s AI infrastructure opportunity.
• Neutral Sentiment: Broadcom also declared a quarterly dividend of $0.65 per share, reinforcing its shareholder-return profile but not likely to drive near-term trading.
• Negative Sentiment: Despite the beat, the stock sold off because AI guidance came in below the market’s most aggressive forecasts, leading investors to worry that expectations for Broadcom’s AI ramp had become too stretched.
• Negative Sentiment: The weaker reaction has also dragged down other semiconductor names, as traders reassess whether the AI spending boom is entering a more “rational” phase.

Broadcom Company Profile

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.

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