Erste Group Bank Raises Earnings Estimates for Broadcom

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Broadcom to $17.72 from $17.60, while maintaining a “Hold” rating. Analysts overall remain bullish, with 28 Buy ratings and four Holds, producing a consensus “Moderate Buy” rating and a $493.24 average price target.
• Broadcom’s latest quarter exceeded expectations, with EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion. Revenue increased 47.9% year over year, supported by strong semiconductor and AI-related demand.
• Shares opened at $427.76, near the upper end of their 52-week range, giving Broadcom a market capitalization of about $2.04 trillion and a P/E ratio of 71.29. Institutional investors own 76.43% of the stock, while the company pays a quarterly dividend of $0.65 per share.

Broadcom Inc. (NASDAQ:AVGO - Free Report) - Equities research analysts at Erste Group Bank boosted their FY2027 EPS estimates for shares of Broadcom in a research note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor manufacturer will earn $17.72 per share for the year, up from their prior estimate of $17.60. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Broadcom's current full-year earnings is $10.24 per share.

Several other brokerages have also commented on AVGO. The Goldman Sachs Group reiterated a "buy" rating on shares of Broadcom in a research report on Monday, August 3rd. UBS Group set a $485.00 price target on Broadcom and gave the company a "buy" rating in a research report on Thursday, June 4th. DA Davidson raised their price objective on Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. Dbs Bank raised shares of Broadcom to a "moderate buy" rating in a report on Thursday, June 18th. Finally, Wall Street Zen lowered shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Twenty-eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average price target of $493.24.

Broadcom Stock Performance

Shares of NASDAQ AVGO opened at $427.76 on Monday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The stock's 50 day moving average price is $392.99 and its two-hundred day moving average price is $370.59. Broadcom has a 52-week low of $281.87 and a 52-week high of $495.00. The stock has a market capitalization of $2.04 trillion, a P/E ratio of 71.29, a PEG ratio of 0.82 and a beta of 1.45.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period last year, the firm earned $1.58 earnings per share.

Institutional Trading of Broadcom

Several hedge funds have recently bought and sold shares of AVGO. Norges Bank acquired a new stake in shares of Broadcom in the fourth quarter valued at $24,252,196,000. Bank of New York Mellon Corp acquired a new position in Broadcom during the second quarter worth about $10,528,191,000. Deutsche Bank AG bought a new stake in Broadcom in the second quarter worth about $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Broadcom in the second quarter worth about $4,457,583,000. Finally, Cardano Risk Management B.V. lifted its holdings in Broadcom by 895.2% in the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock valued at $4,391,940,000 after acquiring an additional 11,414,701 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the firm's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,890 shares of the firm's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 61,644 shares of company stock valued at $24,016,214 over the last three months. Corporate insiders own 1.90% of the company's stock.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom's dividend payout ratio is presently 43.33%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand remains the primary catalyst. Analysts highlighted Broadcom’s record quarterly revenue of approximately $22.2 billion, 79% growth in semiconductor revenue, 143% growth in AI semiconductor revenue to $10.8 billion and more than $30 billion in AI bookings. The figures support the view that hyperscaler spending on custom chips, networking and connectivity is still expanding. Is the AI Selloff a Buying Opportunity? The Data Says Yes
• Positive Sentiment: Broadcom is being positioned as a beneficiary of AI infrastructure bottlenecks. Commentary identified networking equipment, optical interconnects and power delivery as supply-constrained areas, with Broadcom named among companies that could benefit as data-center construction accelerates. Other reports described the company as a leading AI infrastructure stock and a potentially attractive long-term chip investment. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026 3 AI Infrastructure Stocks That Could Make You Rich in August
• Positive Sentiment: Product updates add support for Broadcom’s software business. New capabilities for VMware vDefend and Avi Load Balancer are intended to improve cybersecurity, performance and operational efficiency in private-cloud environments, potentially strengthening Broadcom’s infrastructure-software offering as enterprises prepare for AI workloads. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: Broadcom was included in stock screens favoring companies with high returns on equity and strong earnings growth. The favorable fundamental profile supports investor interest, but the articles offered no new company-specific financial data. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally
• Negative Sentiment: Risks include stretched valuation and broader-market concerns. Coverage warned that AI stocks may face a normal pullback after a strong rally, while oil-price increases could revive inflation concerns. One investment firm also disclosed that it sold 3,867 Broadcom shares, though the transaction appears minor relative to the company’s overall market value. SCS Capital Trims Broadcom Stake

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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