Broadcom (NASDAQ:AVGO) Stock Price Down 1.3% - Here's Why

Key Points

• Broadcom shares fell 1.3% mid‑day to $318.29, trading volume about 28% below average after a prior close of $322.51.
• Management highlighted infrastructure software strength—VMware growth, bookings above $9.2B—and the launch of Symantec CBX, which should boost higher‑margin, recurring revenue driven by AI demand.
• Key near‑term risks are supply‑chain pressure including a TSMC capacity bottleneck that could delay AI product shipments, and a formal EU antitrust complaint over VMware licensing that may raise compliance costs.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) was down 1.3% during mid-day trading on Tuesday . The company traded as low as $314.84 and last traded at $318.29. Approximately 19,378,094 shares changed hands during trading, a decline of 28% from the average daily volume of 26,953,473 shares. The stock had previously closed at $322.51.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: New product and security offering — Broadcom launched Symantec CBX (Carbon Black XDR), expanding its enterprise security portfolio and supporting cross-sell into under‑resourced SOC teams, which can boost recurring software revenue. Read More.
• Positive Sentiment: Infrastructure software strength — Infrastructure Software revenue was highlighted at ~$6.8B with VMware growth and bookings above $9.2B; management cited AI-driven demand for VCF and the new Symantec CBX as tailwinds. That points to higher-margin, recurring revenue growth. Read More.
• Positive Sentiment: Large government/defense business — Broadcom and Carahsoft reached a DISA agreement consolidating software contracts for DoD agencies and enabling clearer pricing and private‑cloud security packaging, which supports durable government contract revenue. Read More.
• Positive Sentiment: Street and thematic bullishness — Recent analyst upgrades (e.g., Bernstein’s bullish AI upgrade) and coverage pieces arguing Broadcom can exceed its $100B AI target have driven investor optimism about long‑term AI revenue upside. Read More. Read More.
• Neutral Sentiment: Positive publicity from commentators — Jim Cramer and other outlets have been spotlighting Broadcom as a top AI/semiconductor pick, which supports retail and momentum flows but is less material than earnings/bookings. Read More.
• Negative Sentiment: Supply constraints and TSMC capacity bottleneck — Broadcom warned of supply-chain pressure and said TSMC capacity is a constraint for AI hardware, increasing execution risk and potential shipment delays for high‑value AI products. This is a primary near‑term headwind for the stock. Read More.
• Negative Sentiment: Regulatory/legal risk in Europe — A formal EU antitrust complaint targets Broadcom’s VMware licensing changes, which could lead to higher compliance costs, contract remediation, or reduced access for some European cloud providers. Read More.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. UBS Group set a $475.00 price objective on shares of Broadcom and gave the stock a "buy" rating in a report on Monday, December 15th. Bank of America lowered their target price on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a report on Thursday, March 5th. Truist Financial upped their price target on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Benchmark reaffirmed a "buy" rating and set a $485.00 price objective on shares of Broadcom in a research report on Thursday, March 5th. Finally, Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective for the company in a research note on Friday, January 30th. One investment 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. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $435.30.

Broadcom Trading Down 1.3%

The firm's 50 day moving average price is $329.84 and its 200-day moving average price is $345.72. The stock has a market cap of $1.51 trillion, a P/E ratio of 62.17, a P/E/G ratio of 0.67 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 announced its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the firm earned $1.60 earnings per share. The firm's quarterly revenue was up 29.5% compared to the same quarter last year. As a group, equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 50.78%.

Insider Transactions at Broadcom

In other news, CEO Hock E. Tan sold 70,000 shares of the company's stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the transaction, the chief executive officer directly owned 132,836 shares of the company's stock, valued at $46,133,942.80. This represents a 34.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider S. Ram Velaga sold 38,841 shares of the company's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares in the company, valued at approximately $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 428,970 shares of company stock valued at $142,585,321. Insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently bought and sold shares of the stock. J. Derek Lewis & Associates Inc. bought a new stake in Broadcom in the 4th quarter worth approximately $4,251,000. Purpose Unlimited Inc. bought a new position in shares of Broadcom during the 4th quarter valued at $14,371,000. Painted Porch Advisors LLC boosted its stake in shares of Broadcom by 28.2% in the 4th quarter. Painted Porch Advisors LLC now owns 1,665 shares of the semiconductor manufacturer's stock worth $576,000 after buying an additional 366 shares during the last quarter. Cornerstone Planning LLC purchased a new position in shares of Broadcom in the 4th quarter worth $7,049,000. Finally, AMG Asset Management Group Inc. bought a new stake in shares of Broadcom in the fourth quarter worth $833,000. 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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