Bank of America Corp DE Has $18.18 Billion Stake in Broadcom Inc. $AVGO

Key Points

• Bank of America increased its Broadcom stake by 1.5% in the first quarter, owning 58.7 million shares worth approximately $18.18 billion—about 1.24% of Broadcom and 1.3% of the bank’s portfolio.
• Broadcom reported quarterly earnings of $2.44 per share and revenue of $22.19 billion, exceeding estimates, while revenue rose 47.9% year over year. The company also maintains a quarterly dividend of $0.65 per share, yielding about 0.7%.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $493.24 versus the stock’s recent price of $370.32. However, concerns persist over elevated AI valuations, potential margin pressure from its reported $200 billion Samsung memory agreement, and related execution risks.

Bank of America Corp DE grew its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.5% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 58,737,097 shares of the semiconductor manufacturer's stock after buying an additional 894,564 shares during the period. Broadcom accounts for about 1.3% of Bank of America Corp DE's portfolio, making the stock its 10th largest position. Bank of America Corp DE owned approximately 1.24% of Broadcom worth $18,179,719,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of the company. ROSS JOHNSON & Associates LLC lifted its holdings in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC increased its position in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 55 shares in the last quarter. Networth Advisors LLC raised its stake in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom in the fourth quarter worth about $33,000. Finally, Family CFO Inc purchased a new stake in shares of Broadcom during the fourth quarter worth about $35,000. Institutional investors own 76.43% of the company's stock.

Broadcom Trading Down 2.8%

AVGO stock opened at $370.32 on Thursday. The business's 50-day moving average is $395.11 and its 200 day moving average is $367.66. Broadcom Inc. has a 12-month low of $281.61 and a 12-month high of $495.00. The stock has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.72, a PEG ratio of 0.73 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm's revenue for the quarter was up 47.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.58 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Analysts Set New Price Targets

AVGO has been the subject of a number of research analyst reports. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. Oppenheimer reaffirmed an "outperform" rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Wall Street Zen lowered Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Finally, Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. Twenty-eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reportedly signed a five-year, $200 billion agreement with Samsung covering memory chips, including high-bandwidth memory (HBM), and potentially advanced packaging. The deal could help solve a key constraint for Broadcom’s AI accelerators by securing critical memory supply and supporting long-term growth. Broadcom Just Signed a $200 Billion AI Agreement
• Positive Sentiment: Analysts and investors remain optimistic that Broadcom’s custom AI-chip business and relationships with hyperscale cloud providers can continue benefiting from infrastructure spending. Some valuation analysis indicates AVGO may be below estimated fair value based on discounted cash flow and earnings multiples despite its strong long-term appreciation. Is Broadcom Stock Below Fair Value After Its AI Deals?
• Neutral Sentiment: The Samsung agreement highlights both the scale of AI demand and the industry’s rising costs. While guaranteed memory access may support revenue, the size of the commitment could pressure margins, capital requirements, and returns if AI demand or customer orders weaken. Broadcom’s $200 Billion Samsung Deal
• Negative Sentiment: Chip stocks have continued to pull back amid fears that AI-related valuations and capital spending expectations have become excessive, creating a broader headwind for AVGO. Chip Stocks Extend Pullback Amid AI Bubble Fears
• Negative Sentiment: One analyst raised concerns about AI “backstop” arrangements involving Broadcom and Nvidia, warning that these structures could leave the companies with additional liabilities if customers do not meet expected commitments. AI Backstop Concerns

Insider Activity at Broadcom

In other news, Director Harry L. You acquired 1,000 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by corporate insiders.

About Broadcom

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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