Broadcom (NASDAQ:AVGO) Trading Up 2% - Still a Buy?

Key Points

• Broadcom expanded a multi‑year AI partnership with Meta through at least 2029 and announced new AI collaborations with Google and Anthropic, positioning the company as a major supplier of custom AI silicon, networking and software that should boost revenue and backlog.
• Shares traded up about 2% to roughly $406.5, the company reported a quarterly beat with revenue up 29.5%, and analysts remain largely bullish — MarketBeat shows a consensus rating of Moderate Buy with a $435.30 average target and several firms setting targets in the $450–$545 range.
• Key risks include customer concentration and execution reliance on a few hyperscaler deals, notable insider selling in the past quarter, and a rich valuation (PE ~79.4) that could temper expectations despite strong growth.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) traded up 2% during mid-day trading on Friday . The stock traded as high as $406.73 and last traded at $406.54. 20,410,619 shares traded hands during trading, a decline of 22% from the average session volume of 26,217,113 shares. The stock had previously closed at $398.47.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Meta expanded a multiyear, multigeneration partnership with Broadcom through at least 2029 to co‑develop custom AI accelerators and Ethernet networking, including an initial >1 gigawatt compute commitment — a major revenue and backlog driver. Will Broadcom-Meta Extended AI-Chip Partnership Fuel Tech ETFs?
• Positive Sentiment: Broadcom announced new AI collaborations with Google and Anthropic, widening its addressable market for custom silicon and positioning AVGO as a key supplier as hyperscalers in‑house more AI compute. Broadcom's New AI Partnership With Google and Anthropic Could Supercharge the Next Leg of the Rally
• Positive Sentiment: Analysts remain bullish: Vijay Rakesh reiterated an Outperform and $480 target after management meetings, citing strong demand across chips and networking — signals of continued upward earnings revisions. Broadcom's Secret Weapon: The Massive AI Chip Deal Set To Explode In 2027
• Positive Sentiment: Celebrity/influencer endorsement: Jim Cramer and several financial outlets have highlighted Broadcom as the primary way to play Meta’s chip program, boosting retail interest and flow into AVGO. Jim Cramer Says “Broadcom Is the One That I Think You Need to Focus On”
• Positive Sentiment: Media coverage emphasizes a broader AI narrative (Beyond NVIDIA), arguing Broadcom’s mix of custom silicon plus networking and software could drive above‑market growth and multiple expansion. Beyond NVIDIA: 2 AI Chip Stocks Positioned for Big Upside in 2026
• Neutral Sentiment: Goldman Sachs reset its Broadcom forecast amid the rally — such institutional re‑ratings can support momentum but may also temper expectations if targets are revised to reflect recent gains. Goldman Sachs resets Broadcom stock forecast
• Negative Sentiment: Some coverage flags concentration and execution risks: larger, bespoke deals with a few hyperscalers can boost revenue but also increase customer concentration and execution dependence; Hock Tan’s step‑down from Meta’s board (to focus on the deal) raises governance/concentration questions for some investors. Broadcom Meta Chip Alliance Deepens AI Ties And Concentration Risks

Analyst Upgrades and Downgrades

AVGO has been the subject of several research reports. Bank of America reduced their target price on Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a report on Thursday, March 5th. Mizuho set a $480.00 price target on Broadcom and gave the stock an "outperform" rating in a research note on Friday, January 9th. JPMorgan Chase & Co. boosted their price objective on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research note on Thursday, March 5th. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Finally, Truist Financial raised their target price on shares of Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $435.30.

Broadcom Stock Performance

The stock has a market cap of $1.92 trillion, a PE ratio of 79.40, a price-to-earnings-growth ratio of 0.82 and a beta of 1.24. The stock has a fifty day moving average of $331.89 and a 200-day moving average of $344.53. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the business earned $1.60 EPS. The firm's revenue was up 29.5% compared to the same quarter last year. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

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

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction dated 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 completion of the sale, the insider owned 278,141 shares in the company, valued at $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider directly owned 787,184 shares in the company, valued at $271,759,532.32. This represents a 1.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of Broadcom

Several hedge funds have recently modified their holdings of AVGO. ROSS JOHNSON & Associates LLC grew its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after purchasing an additional 66 shares during the period. SWAN Capital LLC lifted its stake in shares of Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares during the period. JCIC Asset Management Inc. purchased a new stake in Broadcom during the third quarter worth about $31,000. Miller Global Investments LLC acquired a new position in Broadcom during the fourth quarter worth about $31,000. Finally, Nvest Wealth Strategies Inc. acquired a new position in Broadcom during the fourth quarter worth about $33,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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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