142,487 Shares in Broadcom Inc. $AVGO Acquired by North Dakota State Investment Board

Key Points

• North Dakota’s State Investment Board acquired 142,487 Broadcom shares worth approximately $50 million, making AVGO 2% of its portfolio and its eighth-largest holding.
• Institutional ownership remains substantial, with hedge funds and other institutional investors holding 76.43% of Broadcom after several major firms increased their positions.
• Broadcom’s AI growth outlook is attracting analyst support, including a DA Davidson upgrade, but the stock remains below its moving averages and faces execution, valuation, and rising AI-infrastructure-cost risks.

North Dakota State Investment Board purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 142,487 shares of the semiconductor manufacturer's stock, valued at approximately $50,040,000. Broadcom accounts for 2.0% of North Dakota State Investment Board's investment portfolio, making the stock its 8th largest position.

Other large investors have also recently modified their holdings of the company. State Street Corp lifted its holdings in shares of Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock worth $75,367,711,000 after buying an additional 16,651,378 shares during the period. Bank of America Corp DE increased its stake in shares of Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after buying an additional 2,685,916 shares during the period. Wellington Management Group LLP lifted its stake in Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after acquiring an additional 1,892,721 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock worth $15,178,195,000 after acquiring an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc bought a new position in Broadcom during the 2nd quarter worth about $11,998,148,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Analyst Ratings Changes

Several equities research analysts have recently commented on AVGO shares. Tigress Financial assumed coverage on shares of Broadcom in a report on Thursday, October 22nd. They issued a "buy" rating and a $600.00 price target for the company. The Goldman Sachs Group lifted their price objective on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. UBS Group lowered Broadcom from a "hold" rating to a "neutral" rating in a report on Tuesday, October 27th. BMO Capital Markets increased their target price on Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a research report on Thursday, September 3rd. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $600.00 price target on shares of Broadcom in a report on Tuesday, October 27th. One analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

Broadcom Price Performance

Shares of AVGO stock opened at $326.08 on Monday. The stock's fifty day moving average price is $352.81 and its 200 day moving average price is $366.96. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a market cap of $1.56 trillion, a price-to-earnings ratio of 41.65 and a beta of 1.49. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

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

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were given 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 presently 33.21%.

Broadcom Profile

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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