Amundi Raises Holdings in Broadcom Inc. $AVGO

Key Points

• Amundi increased its Broadcom stake by 2.6% in the second quarter, adding 664,902 shares to own 26.7 million shares valued at approximately $10.1 billion. Institutional investors collectively own 76.43% of AVGO.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and EPS of $3.32, exceeding analyst estimates. Management continues to express confidence in sustained AI demand despite concerns about slower AI development.
• Wall Street remains broadly bullish, with 29 of 33 analysts rating the stock Buy or Strong Buy and a consensus price target of $509.04. However, valuation, customer concentration, macroeconomic conditions and VMware-related margin and financing risks remain key concerns.

Amundi lifted its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.6% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 26,729,788 shares of the semiconductor manufacturer's stock after acquiring an additional 664,902 shares during the quarter. Broadcom makes up approximately 2.4% of Amundi's holdings, making the stock its 7th biggest holding. Amundi owned about 0.56% of Broadcom worth $10,097,094,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of AVGO. Geode Capital Management LLC grew its stake in Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares in the last quarter. Norges Bank bought a new stake in Broadcom during the 4th quarter valued at $24,252,196,000. Bank of America Corp DE raised its position in Broadcom by 4.6% during the 2nd 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 purchasing an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after buying an additional 1,892,721 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Broadcom by 2.9% in the 2nd 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 buying an additional 1,140,598 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now
• Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff
• Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply.
• Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value
• Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock
• Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns
• Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks

Insider Buying and Selling

In related news, Director Gayla Delly sold 1,890 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Justine Page sold 1,602 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 53,492 shares of company stock worth $20,840,292 in the last 90 days. 1.90% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVGO. Truist Financial cut their price target on Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research note on Thursday, September 3rd. Evercore set a $578.00 price objective on shares of Broadcom in a research note on Thursday, September 3rd. Cantor Fitzgerald increased their target price on shares of Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a report on Thursday, September 3rd. Oppenheimer reissued an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Citigroup restated a "buy" rating and issued a $515.00 price target (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $509.04.

Broadcom Price Performance

Shares of AVGO stock opened at $339.51 on Thursday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The stock's 50-day moving average is $380.83 and its 200 day moving average is $378.97. The company has a market cap of $1.62 trillion, a P/E ratio of 43.36 and a beta of 1.44. 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 announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm's revenue was up 85.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.69 earnings per share. Research analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, September 21st. Broadcom's payout ratio is 33.21%.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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