Asset Management One Co. Ltd. Purchases 23,212 Shares of Broadcom Inc. $AVGO

Key Points

• Asset Management One increased its Broadcom stake by 1.1% in the third quarter, acquiring 23,212 shares and bringing its holdings to 2.17 million shares valued at approximately $762.5 million.
• Broadcom reported strong quarterly results, with revenue rising 85.5% year over year to $29.59 billion and EPS of $3.32, beating analyst expectations. The company also maintains a quarterly dividend of $0.65 per share.
• Analysts remain broadly positive on Broadcom’s AI growth prospects, including potential demand from Anthropic and Meta, but the stock has fallen below its moving averages and faces valuation, execution and broader AI-infrastructure spending risks.

Asset Management One Co. Ltd. boosted its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.1% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,171,096 shares of the semiconductor manufacturer's stock after acquiring an additional 23,212 shares during the quarter. Broadcom accounts for 1.9% of Asset Management One Co. Ltd.'s portfolio, making the stock its 9th largest position. Asset Management One Co. Ltd.'s holdings in Broadcom were worth $762,467,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. State Street Corp boosted its stake in Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares in the last quarter. Bank of America Corp DE raised its holdings 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 acquiring an additional 2,685,916 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after purchasing an additional 1,892,721 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased 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 valued at $15,178,195,000 after purchasing an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc acquired a new position in Broadcom in the 2nd quarter valued at approximately $11,998,148,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about 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

Broadcom Stock Down 5.5%

Shares of NASDAQ:AVGO opened at $326.08 on Friday. The company's 50-day moving average price is $352.81 and its two-hundred day moving average price is $366.96. The firm has a market cap of $1.56 trillion, a P/E ratio of 41.65 and a beta of 1.46. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate 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 net margin of 42.94% and a return on equity of 48.33%. Broadcom's revenue was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.69 EPS. As a group, research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

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 yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's payout ratio is currently 33.21%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on AVGO. Erste Group Bank cut Broadcom from a "buy" rating to a "hold" rating in a research note on Tuesday, July 7th. Cantor Fitzgerald lifted their price target on Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. BMO Capital Markets increased their target price on shares of Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. The Goldman Sachs Group boosted their price target on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. Finally, TD Cowen reiterated a "buy" rating and set a $475.00 target price (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

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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