Broadcom (NASDAQ:AVGO) Shares Down 3.2% - Here's Why

Key Points

• Shares fell 3.2% on Thursday (to as low as $307.93) with volume up ~29% as investors rotated into Nvidia after its strong quarter, and Broadcom’s upcoming earnings on March 4 could keep short‑term volatility elevated.
• Strong product and AI/5G catalysts: Broadcom says it expects to sell at least 1 million 3D‑stacked chips by 2027, has started shipping a 3.5D compute SoC, and launched the BroadPeak 5G chip — developments that have supported analyst upgrades and a consensus price target of about $433.13.
• Investors should weigh fundamentals and governance signals: Broadcom has a $1.53 trillion market cap and a high PE (~67.6), recently raised its quarterly dividend to $0.65, while insiders (including the CEO) have sold sizable share blocks in recent months.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) traded down 3.2% on Thursday . The company traded as low as $307.93 and last traded at $321.70. 32,621,679 shares were traded during trading, an increase of 29% from the average session volume of 25,205,822 shares. The stock had previously closed at $332.31.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expects to sell at least 1 million 3D‑stacked chips by 2027, signaling material volume and adoption for its stacked design tech and strengthening its AI silicon roadmap. Exclusive: Broadcom expects to sell 1 million 3D stacked chips by 2027
• Positive Sentiment: Broadcom has started shipping a 3.5D face‑to‑face compute SoC intended to power high‑performance AI workloads — a concrete step toward commercializing next‑gen AI accelerators. Broadcom Ships 3.5D Face-to-Face Compute SoC Powering AI Revolution
• Positive Sentiment: Launch of the BroadPeak 5G Advanced chip expands Broadcom’s product stack into 5G/edge markets, potentially broadening addressable markets and supporting future revenue diversification. What Broadcom (AVGO)'s New 5G Advanced BroadPeak Chip Means For Shareholders
• Positive Sentiment: TD Cowen updated Broadcom’s valuation stressing long‑term AI tailwinds — an analyst signal that supports upside expectations into upcoming results. TD Cowen Adjusts Broadcom (AVGO) Valuation, Highlights Long-Term AI Tailwinds
• Neutral Sentiment: Broadcom continues its dividend payout (next expected in late March), which supports shareholder income but is unlikely to move the shares materially near term. Broadcom to pay dividends on March 31; Here's how much 100 AVGO shares will earn
• Neutral Sentiment: Hedge fund MIG Capital trimmed a small Broadcom stake — a routine portfolio move with limited directional signal. MIG Capital Trims Broadcom Inc. Stake by 18,461 Shares
• Negative Sentiment: Investors rotated into Nvidia after its blockbuster quarter, pulling money out of peers including Broadcom and triggering the immediate downside. Broadcom Falls After Nvidia Earnings, but Here's Why Investors Should Still Buy
• Negative Sentiment: Analysts and commentaries warn of a possible tech rotation or “irrational” selloff ahead of Broadcom’s March 4 earnings — a reminder that short‑term volatility could persist. Broadcom Q1 Preview: Tech Rotation Could Trigger Another Irrational Selloff
• Negative Sentiment: Longer‑term risk analysis highlights execution, valuation and competitive risks that could cap upside if AI ramp timing slips. What Are The Risks Threatening AVGO Stock’s Run?

Analyst Ratings Changes

AVGO has been the subject of a number of recent research reports. Wells Fargo & Company upgraded Broadcom from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Weiss Ratings reissued a "buy (b)" rating on shares of Broadcom in a research report on Monday, December 29th. Barclays reaffirmed an "overweight" rating and issued a $500.00 target price (up from $450.00) on shares of Broadcom in a report on Friday, December 12th. Robert W. Baird set a $420.00 price objective on shares of Broadcom in a research note on Friday, December 12th. Finally, Truist Financial upped their target price on shares of Broadcom from $500.00 to $510.00 and gave the stock a "buy" rating in a research report on Friday, December 19th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $433.13.

Broadcom Trading Down 3.2%

The stock has a fifty day moving average of $336.92 and a 200-day moving average of $342.35. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The company has a market cap of $1.53 trillion, a PE ratio of 67.58, a PEG ratio of 1.04 and a beta of 1.21.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating analysts' consensus estimates of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the business posted $1.42 EPS. The firm's revenue for the quarter was up 28.2% on a year-over-year basis. Sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, December 22nd. This is a positive change from Broadcom's previous quarterly dividend of $0.59. Broadcom's dividend payout ratio is currently 54.62%.

Insider Buying and Selling at Broadcom

In other news, CEO Hock E. Tan sold 130,000 shares of the business's stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the completion of the sale, the chief executive officer owned 595,638 shares in the company, valued at approximately $194,189,900.76. The trade was a 17.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 30,000 shares of the business's stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the completion of the transaction, the chief financial officer directly owned 277,237 shares of the company's stock, valued at $96,428,573.34. This trade represents a 9.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 779,101 shares of company stock worth $283,804,325. Company insiders own 2.00% of the company's stock.

Institutional Trading of Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in AVGO. Assetmark Inc. increased its position in shares of Broadcom by 2.4% during the second quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer's stock valued at $469,566,000 after acquiring an additional 39,466 shares during the last quarter. Capital Counsel LLC NY acquired a new stake in shares of Broadcom in the second quarter valued at $221,000. Waterloo Capital L.P. boosted its stake in shares of Broadcom by 7.0% in the 2nd quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer's stock valued at $13,331,000 after buying an additional 3,180 shares during the period. Providence First Trust Co lifted its stake in Broadcom by 1,099.3% in the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock worth $2,944,000 after acquiring an additional 8,179 shares during the last quarter. Finally, Aspen Wealth Strategies LLC grew its stake in shares of Broadcom by 174.7% during the second quarter. Aspen Wealth Strategies LLC now owns 23,673 shares of the semiconductor manufacturer's stock worth $6,525,000 after purchasing an additional 15,055 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

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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