Broadcom Inc. $AVGO Holdings Raised by Empirical Finance LLC

Key Points

• Empirical Finance increased its Broadcom stake by 4.1% in the second quarter, reaching 148,958 shares valued at approximately $56.3 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and EPS of $3.32, exceeding analyst expectations. Management continues to express confidence in AI demand, though valuation, customer concentration and potential VMware-related risks remain concerns.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $509.04. Broadcom also declared a quarterly dividend of $0.65 per share, equivalent to a 0.8% annualized yield.

Empirical Finance LLC grew its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.1% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 148,958 shares of the semiconductor manufacturer's stock after buying an additional 5,920 shares during the quarter. Broadcom accounts for approximately 2.3% of Empirical Finance LLC's portfolio, making the stock its 7th biggest position. Empirical Finance LLC's holdings in Broadcom were worth $56,269,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in AVGO. Norges Bank acquired a new position in shares of Broadcom during the 4th quarter worth about $24,252,196,000. Legal & General Group Plc acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $10,528,191,000. Jupiter Topco LLC acquired a new position in Broadcom during the second quarter worth approximately $7,396,271,000. Finally, Deutsche Bank AG acquired a new position in Broadcom during the second quarter worth approximately $5,661,216,000. Institutional investors and hedge funds own 76.43% of the company's stock.

More 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

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AVGO. UBS Group lowered shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, September 3rd. KeyCorp reiterated an "overweight" rating and set a $575.00 price target on shares of Broadcom in a research note on Thursday, September 3rd. Rosenblatt Securities began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 price objective on the stock. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Citigroup reaffirmed a "buy" rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $509.04.

Insider Activity at Broadcom

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom 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 sale, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 53,492 shares of company stock worth $20,840,292 over the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom Trading Up 0.1%

Shares of AVGO stock opened at $339.51 on Thursday. The business's fifty day moving average price is $380.83 and its 200 day moving average price is $378.97. The firm has a market capitalization of $1.62 trillion, a PE 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 Inc. has a 1-year low of $289.96 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom's quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.69 earnings per share. As a group, sell-side analysts forecast that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Announces Dividend

The business 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 $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio (DPR) is 33.21%.

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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