Bank of America Corp DE Grows Holdings in Broadcom Inc. $AVGO

Key Points

• Bank of America increased its Broadcom stake by 4.6% in the second quarter, owning 61.4 million shares worth approximately $23.2 billion. Institutional investors collectively hold 76.43% of Broadcom’s outstanding stock.
• Broadcom exceeded quarterly earnings and revenue estimates, reporting $3.32 in earnings per share and $29.59 billion in revenue, up 85.5% year over year. Analysts remain bullish, with a consensus “Moderate Buy” rating and an average price target of $505.97.
• AI semiconductor demand is a major growth catalyst, but Broadcom faces valuation concerns and competitive risks from internal chip efforts by major customers such as Google and OpenAI. Insiders sold roughly $24 million of stock over the past 90 days.

Bank of America Corp DE grew its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.6% during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 61,423,013 shares of the semiconductor manufacturer's stock after purchasing an additional 2,685,916 shares during the quarter. Broadcom makes up approximately 1.5% of Bank of America Corp DE's holdings, making the stock its 11th biggest holding. Bank of America Corp DE owned about 1.29% of Broadcom worth $23,202,543,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of AVGO. State Street Corp boosted its holdings in shares of Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the period. Geode Capital Management LLC raised its stake in Broadcom by 1.4% during 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 acquiring an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares during the period. Norges Bank bought a new position in Broadcom in the fourth quarter worth about $24,252,196,000. Finally, Legal & General Group Plc bought a new position in Broadcom in the second quarter worth about $11,998,148,000. Institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their target price on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Morgan Stanley reissued an "overweight" rating and issued a $505.00 price target (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. Mizuho boosted their price objective on Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a research report on Thursday, June 4th. Bank of America upped their price objective on Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Finally, Evercore set a $578.00 target price on Broadcom in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $505.97.

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction dated 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 directly owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate insiders own 1.90% of the company's stock.

Broadcom Stock Performance

AVGO opened at $361.99 on Monday. The business has a 50 day moving average price of $383.03 and a two-hundred day moving average price of $378.66. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The company has a market capitalization of $1.73 trillion, a price-to-earnings ratio of 46.23 and a beta of 1.44. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company's revenue was up 85.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.69 earnings per share. Research analysts predict that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced 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. 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 dividend payout ratio is currently 33.21%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst upgrade: Piper Sandler upgraded Broadcom to “strong buy,” reinforcing confidence in the company’s earnings growth and AI semiconductor outlook. Zacks Broadcom analyst upgrade
• Positive Sentiment: AI revenue expectations remain a major catalyst: Broadcom projects approximately $115 billion in AI semiconductor revenue for fiscal 2027 and $230 billion for fiscal 2028. Custom accelerators and networking products are benefiting from hyperscalers seeking lower-cost, workload-specific alternatives to Nvidia’s chips. Broadcom AI semiconductor revenue forecast
• Positive Sentiment: Strong customer demand: OpenAI, Anthropic, Alphabet and Meta are cited as buyers or potential buyers of Broadcom-designed accelerators, supporting the view that the company can gain share as AI infrastructure becomes more diversified. Broadcom custom AI accelerator demand
• Positive Sentiment: Recent execution was solid: Broadcom exceeded quarterly earnings and revenue estimates, while revenue rose sharply year over year. Analysts continue to argue that improving profits could eventually support a significantly higher valuation. Broadcom earnings and analyst coverage
• Neutral Sentiment: Market and valuation backdrop: Rising Treasury yields and a high earnings multiple are encouraging investors to scrutinize expensive AI stocks, even when long-term demand remains strong. Broadcom’s ability to deliver on its 2027–2028 forecasts will be critical.
• Negative Sentiment: Competitive uncertainty: Google’s internal chip efforts and OpenAI’s newly disclosed Samsung partnership have raised questions about whether some future custom-chip business could bypass Broadcom. The impact is unclear, but the developments may pressure near-term sentiment. Broadcom Google chip risks

About Broadcom

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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