Broadcom (NASDAQ:AVGO) Stock Price Up 1.3% - Time to Buy?

Key Points

• Broadcom shares rose 1.3% on Tuesday, trading as high as $397.33 before ending near $389.11, though volume came in below average.
• Fundamental and strategic news remained supportive, especially reports of an expanded Apple custom chip deal through 2031, which reinforces Broadcom’s revenue base beyond AI.
• Wall Street remains largely bullish on AVGO, with multiple analysts raising price targets and consensus sentiment sitting at a “Moderate Buy,” despite some near-term headwinds from sector weakness and insider selling.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price traded up 1.3% on Tuesday . The stock traded as high as $397.33 and last traded at $389.11. Approximately 18,656,998 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 26,278,639 shares. The stock had previously closed at $384.05.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s long-term outlook got a boost after reports highlighted its expanded Apple custom chip agreement through 2031, which reinforces a durable revenue stream outside of AI and supports the company’s role as a key semiconductor supplier. What Broadcom (AVGO)'s Extended Apple Custom Chip Deal Through 2031 Means For Shareholders
• Positive Sentiment: Several articles framed Broadcom as a major AI winner, with commentary suggesting it could outperform Nvidia over the rest of 2026 and remain one of the strongest picks in AI infrastructure. Broadcom vs Nvidia: Yes, Broadcom Is Set to Outpace Nvidia Through the Rest of 2026
• Positive Sentiment: Analyst and investor commentary remained constructive on AI spending trends, with reports citing a “mega bull case” for AI infrastructure and optimistic Wall Street views on Broadcom’s business momentum. Famous AI Investor Says This is the ‘Mega Bull Case' For Stocks like NVIDIA, Micron, and Broadcom
• Neutral Sentiment: One article compared Broadcom with Nvidia, AMD, and Alphabet in the AI chip race, but it was more of a valuation/strategy discussion than a new company-specific catalyst. Price Prediction: Nvidia vs AMD vs Broadcom, Which One Could 3x by 2027?
• Negative Sentiment: Broadcom also appeared in a sector selloff story, where chip stocks fell amid geopolitical tension and rotation out of semiconductors, which can weigh on the shares in the short term. INTC, AMD, NVDA, AVGO: Chip Stocks Slide As Fresh US-Iran Strikes Test Peace Deal
• Negative Sentiment: An insider-selling report may create a modest near-term overhang, though it is not necessarily a change in Broadcom’s fundamentals. Insider Selling: Broadcom NASDAQ: AVGO Insider Sells $9,479,750.00 in Stock

Analyst Ratings Changes

AVGO has been the subject of several recent analyst reports. Morgan Stanley set a $502.00 target price on Broadcom and gave the stock an "overweight" rating in a research report on Thursday, June 4th. Susquehanna reaffirmed a "positive" rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Benchmark lifted their price target on Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Jefferies Financial Group set a $550.00 price objective on Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. Finally, JPMorgan Chase & Co. raised their target price on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. 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. Based on data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus target price of $493.24.

Broadcom Price Performance

The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $1.85 trillion, a PE ratio of 64.85, a PEG ratio of 0.70 and a beta of 1.45. The business has a fifty day moving average price of $404.62 and a 200-day moving average price of $364.53.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period last year, the firm posted $1.58 EPS. Research analysts expect that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom's payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Harry L. You purchased 1,000 shares of the business's stock in a transaction on Thursday, June 11th. The stock was acquired at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 36,644 shares of company stock worth $13,982,964 in the last quarter. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Trust Asset Management LLC grew its position in Broadcom by 1.3% during the 2nd quarter. Trust Asset Management LLC now owns 52,549 shares of the semiconductor manufacturer's stock worth $19,850,000 after acquiring an additional 688 shares during the last quarter. First Community Trust NA lifted its position in Broadcom by 1.9% in the second quarter. First Community Trust NA now owns 5,971 shares of the semiconductor manufacturer's stock valued at $2,256,000 after purchasing an additional 111 shares during the last quarter. Ballast Inc. lifted its position in Broadcom by 39.5% in the second quarter. Ballast Inc. now owns 1,667 shares of the semiconductor manufacturer's stock valued at $630,000 after purchasing an additional 472 shares during the last quarter. Regent Peak Wealth Advisors LLC boosted its stake in shares of Broadcom by 0.5% during the second quarter. Regent Peak Wealth Advisors LLC now owns 16,174 shares of the semiconductor manufacturer's stock valued at $6,110,000 after purchasing an additional 78 shares during the period. Finally, Buska Wealth Management LLC purchased a new stake in shares of Broadcom during the second quarter valued at approximately $286,000. Institutional investors own 76.43% of the company's stock.

About Broadcom

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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