Broadcom (NASDAQ:AVGO) Trading 5.5% Higher - Still a Buy?

Key Points

• Broadcom shares rose 5.5% in mid-day trading, hitting as high as $442.36 as investors reacted to renewed optimism around the stock. Trading volume was below average, suggesting the move was driven more by sentiment than heavy turnover.
• Analysts turned more bullish on Broadcom ahead of its June 3 earnings report, with Wells Fargo lifting its price target to $545 and Citi raising its target to $500. The upbeat calls were tied to stronger-than-expected AI semiconductor and data center demand.
• Broadcom continues to benefit from AI infrastructure spending, with commentary pointing to hyperscaler expansion boosting demand for its networking and custom silicon businesses. The company’s recent earnings also showed solid momentum, including revenue up 29.5% year over year.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 5.5% during mid-day trading on Thursday . The company traded as high as $442.36 and last traded at $439.79. Approximately 19,233,063 shares were traded during trading, a decline of 22% from the average daily volume of 24,781,525 shares. The stock had previously closed at $416.79.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wells Fargo turned more bullish on Broadcom, lifting its price target to $545 from $430 and keeping an Overweight rating, citing AI semiconductor revenue that appears to be running 30%-40% above expectations. Wells Fargo Just Hiked Broadcom Price Target to $545: AI Semi Revenue Running 30-40% Higher Than Expected
• Positive Sentiment: Another Wells Fargo note said Wall Street may still be underestimating AI infrastructure demand tied to hyperscaler data center expansion, which supports Broadcom’s networking and custom silicon businesses. Broadcom Surges On New Data Center Framework: Wall Street Vastly Underestimating AI Power Needs
• Positive Sentiment: Citi reiterated Broadcom as a top semiconductor pick and raised its price target to $500, adding to the bullish re-rating ahead of the company’s June 3 earnings report. Broadcom Enters Earnings As Citi's Top Semiconductor Pick
• Positive Sentiment: Broadcom is benefiting from broader enthusiasm for AI infrastructure spending, with investors positioning ahead of earnings and higher forecasts for custom AI silicon demand. Broadcom stock surges 4% to 52-week high: can the rally continue?
• Neutral Sentiment: Several recent articles highlighted Broadcom’s strong year-to-date performance and ongoing investor interest, but these were more commentary than new catalysts. Are Computer and Technology Stocks Lagging Broadcom (AVGO) This Year?
• Neutral Sentiment: There was also news that Broadcom is suing EU antitrust regulators over document requests related to VMware, which adds legal uncertainty but does not appear to be the main driver today. Broadcom sues EU antitrust regulators over request for US legal documents

Wall Street Analyst Weigh In

AVGO has been the subject of a number of recent analyst reports. Truist Financial lifted their price target on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Wolfe Research raised Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target for the company in a report on Friday, January 30th. Mizuho reaffirmed an "outperform" rating and set a $480.00 price target on shares of Broadcom in a report on Thursday, April 16th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 price target on shares of Broadcom in a report on Tuesday, April 7th. Finally, Benchmark reaffirmed a "buy" rating and set a $485.00 price target on shares of Broadcom in a report on Thursday, March 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $439.97.

Broadcom Trading Up 5.5%

The stock has a market capitalization of $2.08 trillion, a price-to-earnings ratio of 85.90, a PEG ratio of 0.87 and a beta of 1.43. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The business has a 50-day moving average of $360.94 and a 200-day moving average of $353.52.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business's revenue was up 29.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.60 EPS. As a group, research analysts forecast that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom's payout ratio is presently 50.78%.

Insider Buying and Selling at Broadcom

In other news, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction on Tuesday, March 17th. The shares were 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 of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider S. Ram Velaga sold 38,841 shares of Broadcom stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the transaction, the insider directly owned 96,147 shares in the company, valued at $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. Insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Broadcom

Several institutional investors have recently added to or reduced their stakes in the stock. Fullerton Advisors LLC increased its position in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after acquiring an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co increased its position in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock valued at $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. increased its position in Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock valued at $2,631,000 after acquiring an additional 26 shares during the period. Yukon Wealth Management Inc. increased its position in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock valued at $774,000 after acquiring an additional 26 shares during the period. Finally, Capital Planning LLC increased its position in Broadcom by 0.7% in the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock valued at $1,252,000 after acquiring an additional 28 shares during the period. Institutional investors and hedge funds 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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