Erste Group Bank Increases Earnings Estimates for Broadcom

Key Points

• Erste Group raised its FY2026 EPS estimate for Broadcom from $9.80 to $9.81 while maintaining a "Hold" rating, and projects FY2027 EPS of $16.61 (consensus FY2026 EPS is $9.95).
• Broadcom recently beat March‑quarter expectations with $2.05 EPS and $19.31 billion in revenue (up 29.5% year‑over‑year), posting strong margins and return on equity.
• The sell‑side remains largely bullish—Broadcom has a consensus "Moderate Buy" rating, an average 12‑month target near $435, and a market capitalization around $1.9 trillion (P/E ≈78).

Broadcom Inc. (NASDAQ:AVGO - Free Report) - Equities research analysts at Erste Group Bank increased their FY2026 EPS estimates for Broadcom in a research report issued on Monday, April 27th. Erste Group Bank analyst H. Engel now expects that the semiconductor manufacturer will earn $9.81 per share for the year, up from their prior estimate of $9.80. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Broadcom's current full-year earnings is $9.95 per share. Erste Group Bank also issued estimates for Broadcom's FY2027 earnings at $16.61 EPS.

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, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $19.10 billion. During the same period in the prior year, the business earned $1.60 earnings per share. Broadcom's quarterly revenue was up 29.5% on a year-over-year basis.

Several other brokerages have also weighed in on AVGO. Benchmark restated a "buy" rating and issued a $485.00 price objective on shares of Broadcom in a report on Thursday, March 5th. The Goldman Sachs Group restated a "buy" rating and issued a $450.00 price objective on shares of Broadcom in a report on Monday, January 5th. Truist Financial increased their price objective on shares of Broadcom from $510.00 to $545.00 and gave the company a "buy" rating in a report on Thursday, March 5th. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective on the stock in a report on Friday, January 30th. Finally, Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $435.30.

Broadcom Price Performance

Shares of AVGO stock opened at $399.83 on Wednesday. Broadcom has a 1 year low of $184.02 and a 1 year high of $429.31. The firm's 50 day moving average is $344.25 and its 200-day moving average is $348.93. The firm has a market capitalization of $1.89 trillion, a price-to-earnings ratio of 78.09, a PEG ratio of 0.86 and a beta of 1.24. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date was Monday, March 23rd. Broadcom's payout ratio is presently 50.78%.

Insider Transactions at Broadcom

In other Broadcom 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 sale, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director owned 18,164 shares in the company, valued at $6,411,892. The trade was a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. ROSS JOHNSON & Associates LLC grew its position in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after acquiring an additional 66 shares during the period. Networth Advisors LLC grew its position 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 acquiring an additional 71 shares during the period. SWAN Capital LLC grew its position in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares during the period. JCIC Asset Management Inc. bought a new position in shares of Broadcom in the 3rd quarter valued at about $31,000. Finally, Miller Global Investments LLC bought a new position in shares of Broadcom in the 4th quarter valued at about $31,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Big partner momentum — Broadcom’s rally has been bolstered by partnership/news flow (notably Google’s new AI chip roadmap) that helped push the stock to record market‑cap levels, reinforcing the company’s custom AI-silicon narrative. Read More.
• Positive Sentiment: Strong analyst conviction — Street coverage is overwhelmingly bullish (most analysts rate AVGO a Buy and 12‑month targets imply double‑digit upside), which underpins longer‑term demand from institutions. Read More.
• Positive Sentiment: Upgraded price‑target narratives and bullish writeups are feeding momentum trades and ETF inflows into semiconductors, supporting AVGO’s valuation case amid strong revenue growth and expanding custom‑silicon sales. Read More.
• Neutral Sentiment: Semi/AI ETF dynamics are amplifying moves both ways — sector ETFs and momentum products have been heavy buyers recently, which can accelerate upside but also amplify volatility on headlines. Read More.
• Negative Sentiment: OpenAI miss spooked the AI infrastructure trade — reports that OpenAI missed internal user/revenue goals rattled hyperscaler capex expectations and triggered a sector pullback that pressured Broadcom along with other AI‑exposed chip names. Read More.
• Negative Sentiment: Broad sector weakness — broader declines in AI chip leaders (reported by Barron's) and short‑term technical/profit‑taking flows have pulled AVGO down despite the positive fundamentals. Read More.
• Negative Sentiment: Near‑term trading volatility: market‑timed pullbacks and headline risk are already reflected in recent intraday declines — watch quarterly cadence, hyperscaler order disclosures, and any update on customer concentration risk. Read More.

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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