Broadcom (NASDAQ:AVGO) Shares Down 2.8% - Here's What Happened

Key Points

• Shares fell 2.8% on Friday to $300.68 (intraday low $298.87) on ~23.4M shares traded, about 12% below the stock's average daily volume.
• OpenAI partnership: Broadcom struck a multiyear deal to co-develop custom AI accelerators, triggering analyst upgrades and higher EPS and price-target revisions that bolster an AI-driven growth thesis.
• Fundamentals remain strong—quarterly EPS of $2.05 (vs. $2.03) and revenue of $19.31B (+29.5% YoY)—but sizable recent insider selling has raised near-term sentiment risks despite a consensus "Moderate Buy" and a ~$435.30 average target.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 2.8% on Friday . The stock traded as low as $298.87 and last traded at $300.68. Approximately 23,427,134 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 26,749,289 shares. The stock had previously closed at $309.42.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: OpenAI partnership: Broadcom struck a multiyear deal to co-develop custom AI accelerators, positioning AVGO as a strategic supplier for OpenAI and signaling material addressable revenue from bespoke AI silicon and related infrastructure. OpenAI Just Became Broadcom's Newest Chip Customer
• Positive Sentiment: Analyst upgrades: Erste Group sharply raised estimates (FY2026 to ~$9.80 EPS and FY2027 to ~$16.55 EPS), implying much stronger earnings power than consensus and supporting a higher valuation if AI wins scale as expected.
• Positive Sentiment: Thesis reinforcement from market commentary: Multiple bullish write-ups highlight Broadcom’s expanding role across custom AI silicon, networking and software for hyperscalers — a structural growth story that investors view as durable despite recent volatility. Broadcom (AVGO) Powers the AI Boom — Bullish despite the Pullback
• Neutral Sentiment: Price-target / multi‑year outlook pieces: Analysts and retail sites are publishing 3‑year AVGO price predictions and scenario analyses reflecting both upside from AI exposure and risk from lofty multiples. Broadcom Stock Price Prediction: Where Will AVGO Be in 3 Years?
• Neutral Sentiment: Buy-the-dip narratives: Several outlets argue the ~24% pullback is a buying opportunity tied to the OpenAI deal and secular AI demand, but these are thesis-driven and hinge on execution. Is the 24% Dip a Golden Buying Opportunity?
• Neutral Sentiment: Macro/sector context: Coverage noting that tech earnings have grown but some ETFs (and segments) lag share-price recovery, which can keep trading volatile for large-cap semiconductors like AVGO. As Tech Earnings Grow, This ETF Still Hasn't Caught Up (AVGO)
• Negative Sentiment: Insider selling: Reports of insiders selling shares have raised near‑term sentiment concerns and may amplify downside during a broader pullback, even if strategic fundamentals remain intact. Broadcom Insiders Are Selling Stock. Is AVGO Finally at the End of the Road?

Analyst Ratings Changes

Several research firms have recently issued reports on AVGO. Benchmark reissued a "buy" rating and set a $485.00 target price on shares of Broadcom in a research note on Thursday, March 5th. Piper Sandler reiterated an "overweight" rating and issued a $430.00 price target (up from $375.00) on shares of Broadcom in a report on Friday, December 12th. Mizuho set a $480.00 price objective on shares of Broadcom and gave the company an "outperform" rating in a research report on Friday, January 9th. Rosenblatt Securities upped their price objective on shares of Broadcom from $450.00 to $500.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Finally, Barclays reaffirmed an "overweight" rating and issued a $500.00 target price (up from $450.00) on shares of Broadcom in a research report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $435.30.

Broadcom Stock Down 2.8%

The stock's 50 day simple moving average is $328.02 and its two-hundred day simple moving average is $345.17. The firm has a market cap of $1.42 trillion, a P/E ratio of 58.73, a P/E/G ratio of 0.68 and a beta of 1.22. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.60 earnings per share. As a group, research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Monday, March 23rd. Broadcom's payout ratio is presently 50.78%.

Insiders Place Their Bets

In other news, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction on 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 completion of the transaction, the insider owned 278,141 shares in the company, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 70,000 shares of the company's stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total value of $24,311,000.00. Following the transaction, the chief executive officer directly owned 132,836 shares in the company, valued at approximately $46,133,942.80. The trade was a 34.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 403,049 shares of company stock worth $133,459,315 in the last three months. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Broadcom

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. State Street Corp lifted its position in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares during the period. Geode Capital Management LLC boosted its holdings in Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Broadcom by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock worth $29,607,500,000 after purchasing an additional 2,491,644 shares during the last quarter. Finally, Norges Bank bought a new stake in Broadcom in the 4th quarter worth approximately $24,252,196,000. 76.43% of the stock is currently owned by institutional investors.

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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