Broadcom Inc. $AVGO is Epoch Investment Partners Inc.'s 3rd Largest Position

Key Points

• Epoch Investment Partners cut its Broadcom stake by 7.2% in the first quarter but still held 1.02 million shares worth approximately $315.5 million, making Broadcom its third-largest position. Institutional investors collectively own 76.43% of the stock.
• Analysts remain broadly bullish: 28 rate Broadcom a Buy and four rate it a Hold, with an average price target of $493.24. Recent targets range from $515 to $550.
• Broadcom’s latest quarter showed strong momentum, with revenue rising 47.9% year over year to $22.19 billion and EPS beating estimates. Demand for custom AI chips and data-center infrastructure supports the outlook, though elevated valuation and potential changes to hyperscaler AI spending remain risks.

Epoch Investment Partners Inc. decreased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,019,499 shares of the semiconductor manufacturer's stock after selling 78,894 shares during the period. Broadcom comprises approximately 1.9% of Epoch Investment Partners Inc.'s holdings, making the stock its 3rd largest position. Epoch Investment Partners Inc.'s holdings in Broadcom were worth $315,545,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of AVGO. Vanguard Group Inc. grew its holdings in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the period. State Street Corp raised its stake in shares of Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock worth $65,788,194,000 after buying an additional 5,040,801 shares during the period. Geode Capital Management LLC raised its stake in shares of Broadcom by 1.4% in 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 buying an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD lifted its position in shares of Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock valued at $29,607,500,000 after buying an additional 2,491,644 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Broadcom during the 4th quarter valued at approximately $24,252,196,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms recently issued reports on AVGO. Mizuho increased their target price on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a report on Thursday, June 4th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a "buy" rating in a research report on Thursday, June 4th. Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 15th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Twenty-eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $493.24.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Alphabet’s increased AI spending is a major catalyst. Alphabet reportedly plans $195 billion to $205 billion in capital expenditures, while its cloud business posted strong growth. Because Broadcom supplies Alphabet with custom AI processors and related infrastructure, the spending outlook points to potentially higher demand for Broadcom’s technology. Broadcom May Be the Biggest Winner From Alphabet's Earnings
• Positive Sentiment: Custom-silicon demand and new customer wins are strengthening the growth story. Investor commentary highlighted Broadcom’s momentum in custom AI chips, with demand from large technology companies helping drive expectations for continued expansion. Broadcom Rose on Strong Custom Silicon Demand and New Client Wins
• Positive Sentiment: Broadcom is viewed as a key beneficiary of data-center infrastructure spending. Analysts and financial writers point to its AI networking, custom accelerators and semiconductor infrastructure products as ways to participate in AI growth beyond the dominant GPU market. 3 Top AI Stocks to Buy Now With Data Center Infrastructure Spending Set to Surge
• Neutral Sentiment: Broadcom’s expanded Samsung relationship may improve supply visibility. J.P. Morgan said Samsung is expected to provide most of Broadcom’s memory needs through 2030, supporting execution but also increasing reliance on a major supplier. Broadcom's Expanded Samsung Pact Shows AI Trade Is Still All About Memory
• Negative Sentiment: High valuation and AI capital-spending concerns remain the principal risks. With a lofty earnings multiple and the stock below its 50-day average, investors may be sensitive to any evidence that hyperscalers are slowing or reassessing AI investment. Recent coverage frames potential capex fears as a buying opportunity, but the risk could still create volatility. Broadcom's The Perfect Buy as Capex Fears Materialize

Broadcom Trading Up 0.3%

Broadcom stock opened at $383.22 on Tuesday. The stock has a market cap of $1.82 trillion, a P/E ratio of 63.87, a PEG ratio of 0.73 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. Broadcom Inc. has a 1 year low of $281.61 and a 1 year high of $495.00. The firm's 50 day moving average price is $396.67 and its 200-day moving average price is $367.13.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its 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. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the previous year, the firm earned $1.58 earnings per share. The company's quarterly revenue was up 47.9% compared to the same quarter last year. On average, equities analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's payout ratio is presently 43.33%.

Insider Activity at Broadcom

In other news, Director Gayla J. Delly sold 1,890 shares of the firm'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 completion of the transaction, 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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock worth $24,016,214 in the last quarter. 1.90% of the stock is owned by company 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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