Broadcom (NASDAQ:AVGO) Rating Increased to Buy at Wall Street Zen

Key Points

• Broadcom was upgraded by Wall Street Zen from a “hold” to a “buy,” adding to a generally bullish analyst backdrop that includes multiple recent price target increases from firms like KeyCorp and JPMorgan.
• The company beat fiscal Q2 expectations, reporting EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, with revenue up 47.9% year over year.
• Investor focus remains on AI growth: Broadcom says AI revenue could reach $56 billion in fiscal 2026 and over $100 billion in fiscal 2027, though the stock has still faced pressure because some investors wanted an even stronger near-term outlook.

Broadcom (NASDAQ:AVGO - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday.

AVGO has been the topic of several other research reports. KeyCorp reaffirmed an "overweight" rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a research note on Thursday. JPMorgan Chase & Co. upped their price target on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday. TD Cowen reaffirmed a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research note on Thursday. Weiss Ratings raised Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, May 27th. Finally, Evercore reissued an "outperform" rating and set a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $490.13.

Broadcom Stock Performance

Shares of Broadcom stock opened at $385.73 on Friday. Broadcom has a 52 week low of $241.11 and a 52 week high of $495.00. The business's fifty day simple moving average is $396.22 and its 200-day simple moving average is $361.90. The firm has a market cap of $1.83 trillion, a PE ratio of 64.29, a price-to-earnings-growth ratio of 0.79 and a beta of 1.41. The company has a quick ratio of 1.73, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

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 the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the prior year, the company posted $1.58 EPS. The company's quarterly revenue was up 47.9% on a year-over-year basis. Equities analysts forecast that Broadcom will post 9.97 earnings per share for the current year.

Insider Transactions at Broadcom

In related news, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the transaction, the insider owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the transaction, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their position. 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 in the last 90 days. Insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently bought and sold shares of the stock. ROSS JOHNSON & Associates LLC increased its holdings in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Networth Advisors LLC increased its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the last quarter. SWAN Capital LLC increased its holdings in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter valued at about $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

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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