Broadcom Inc. (NASDAQ:AVGO) Stock Has Average Price Target of $529.17

Key Points

• Broadcom has a favorable analyst outlook: 38 of 42 brokerages rate the stock a buy, one rates it a strong buy and three recommend holding it. The average 12-month price target is $529.17, with recent targets ranging as high as $715.
• Recent financial results exceeded expectations: Broadcom reported quarterly EPS of $3.32 versus the $3.22 consensus estimate, while revenue reached $29.59 billion, up 85.5% year over year. The company also maintains a quarterly dividend of $0.65 per share.
• AI growth remains a major opportunity, but risks persist: Demand for custom AI accelerators and continued institutional interest support the outlook, while Alphabet’s supplier diversification, competition from MediaTek and broader concerns about AI spending could pressure market share and margins.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) has earned an average rating of "Moderate Buy" from the forty-two brokerages that are covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, thirty-eight have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $529.17.

A number of equities analysts have weighed in on the stock. Lake Street Capital raised shares of Broadcom to a "buy" rating in a research note on Thursday, September 3rd. The Goldman Sachs Group increased their price target on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Cantor Fitzgerald increased their price target on shares of Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research note on Thursday, September 3rd. UBS Group lowered shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, September 3rd. Finally, BNP Paribas Exane boosted their price objective on shares of Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a research report on Friday, September 4th.

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in AVGO. Networth Advisors LLC boosted its stake in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 71 shares during the last quarter. Core Capital Management & Research inc. acquired a new stake in shares of Broadcom during the 2nd quarter worth approximately $31,000. Harborfront Financial Group LLC acquired a new stake in shares of Broadcom during the 2nd quarter worth approximately $38,000. Align Financial LLC raised its stake in shares of Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock worth $38,000 after buying an additional 45 shares during the last quarter. Finally, Curry Webb Wealth Management LLC bought a new stake in shares of Broadcom during the third quarter worth approximately $41,000. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

Shares of NASDAQ:AVGO opened at $321.68 on Friday. The business has a fifty day moving average of $356.05 and a 200-day moving average of $384.25. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. Broadcom has a twelve month low of $289.96 and a twelve month high of $495.00. The firm has a market cap of $1.54 trillion, a PE ratio of 41.08 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the prior year, the company earned $1.69 EPS. The firm's quarterly revenue was up 85.5% on a year-over-year basis. On average, equities research analysts predict that Broadcom will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio (DPR) is 33.21%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

About Broadcom

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company's semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

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