Asset One Wealth Management LLC Takes Position in Broadcom Inc. $AVGO

Key Points

• Asset One Wealth Management acquired 24,032 Broadcom shares worth approximately $9.5 million during the second quarter, making AVGO its 23rd-largest holding and about 1% of its portfolio. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, while AI semiconductor revenue surged 221% to $16.7 billion. Management raised its long-term AI revenue outlook to $115 billion for fiscal 2027 and $230 billion for fiscal 2028.
• Despite strong earnings and bullish analyst price-target increases, Broadcom’s fiscal fourth-quarter revenue guidance came in slightly below expectations. Investors also remain concerned about supply constraints, customer concentration, competition, and the company’s premium valuation.

Asset One Wealth Management LLC bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 24,032 shares of the semiconductor manufacturer's stock, valued at approximately $9,475,000. Broadcom accounts for about 1.0% of Asset One Wealth Management LLC's portfolio, making the stock its 23rd biggest position.

Several other hedge funds have also recently added to or reduced their stakes in the business. Cornerstone Advisors LLC acquired a new position in shares of Broadcom during the 2nd quarter worth approximately $92,522,000. Bank of America Corp DE lifted its holdings in Broadcom by 1.5% during the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock valued at $18,179,719,000 after purchasing an additional 894,564 shares during the last quarter. Clear Harbor Asset Management LLC acquired a new stake in Broadcom during the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC boosted its position in Broadcom by 129.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after purchasing an additional 62,050 shares during the period. Finally, First Bank & Trust boosted its position in Broadcom by 17.2% during the second quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock worth $3,968,000 after purchasing an additional 1,545 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, and non-GAAP EPS of $3.32, exceeding estimates of $29.43 billion and $3.22. AI semiconductor revenue surged 221% to $16.7 billion, while free cash flow reached $13.7 billion. Broadcom fiscal third-quarter results
• Positive Sentiment: Management raised its fiscal 2027 AI revenue outlook to $115 billion and projected $230 billion in fiscal 2028, alongside confidence in fiscal 2027 EPS of at least $30. Analysts including Macquarie, Cantor Fitzgerald, BMO and Rosenblatt responded with upgrades or higher price targets, supporting the long-term AI investment case. Broadcom AI growth outlook
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, payable September 30 to shareholders of record September 21. The dividend provides modest income but is unlikely to drive the stock’s near-term performance. Broadcom dividend announcement
• Negative Sentiment: Fiscal fourth-quarter revenue guidance of approximately $34.8 billion was below Wall Street’s roughly $35.0 billion expectation. Investors viewed the outlook as insufficient given AVGO’s premium valuation and elevated AI expectations, overshadowing the earnings beat. Broadcom forecasts quarterly revenue below estimates
• Negative Sentiment: Investors are also weighing supply constraints involving power, land, chips and substrates, along with customer concentration among major hyperscalers such as Alphabet, Anthropic and OpenAI. Competition from custom-chip rivals, including Marvell, adds uncertainty to the ambitious long-term forecast. Broadcom AI supply constraints
• Negative Sentiment: Recent disclosures that Third Point exited its Broadcom position and that company insiders have overwhelmingly sold shares may reinforce profit-taking concerns, although these transactions are not necessarily indicative of deteriorating fundamentals. Dan Loeb exits Broadcom position

Analysts Set New Price Targets

Several equities analysts have recently weighed in on AVGO shares. Cantor Fitzgerald increased their price objective on shares of Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research report on Thursday. Susquehanna reaffirmed a "positive" rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. The Goldman Sachs Group reiterated a "buy" rating on shares of Broadcom in a research note on Monday, August 3rd. BMO Capital Markets increased their price target on shares of Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a report on Thursday. Finally, Mizuho raised their price objective on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. Thirty-one equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $501.77.

Broadcom Price Performance

NASDAQ:AVGO opened at $357.16 on Friday. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The firm has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.61, a P/E/G ratio of 0.70 and a beta of 1.44. The firm's 50-day simple moving average is $383.71 and its 200 day simple moving average is $377.36. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 50.76%. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the previous year, the firm posted $1.69 EPS. The business's revenue for the quarter was up 85.5% compared to the same quarter last year. As a group, sell-side analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's payout ratio is currently 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You bought 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Justine Page sold 1,602 shares of the firm's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares in the company, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by insiders.

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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