Broadcom Inc. $AVGO Stock: China Universal Asset Management Co. Ltd. Boosts Position

Key Points

• China Universal Asset Management increased its Broadcom stake by 4.2% in the third quarter, holding 105,761 shares valued at approximately $37.6 million. Institutional investors collectively own 76.43% of Broadcom.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $530.52, despite some recent downgrades to neutral or hold.
• Broadcom’s AI growth outlook is supported by potential Anthropic and Meta demand, but investors face valuation and execution risks. The stock trades below its moving averages and recent high, while the company’s latest quarter showed 85.5% year-over-year revenue growth and earnings above estimates.

China Universal Asset Management Co. Ltd. raised its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.2% during the 3rd quarter, according to its most recent filing with the SEC. The firm owned 105,761 shares of the semiconductor manufacturer's stock after acquiring an additional 4,216 shares during the period. Broadcom makes up approximately 2.0% of China Universal Asset Management Co. Ltd.'s holdings, making the stock its 10th biggest position. China Universal Asset Management Co. Ltd.'s holdings in Broadcom were worth $37,556,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in AVGO. Core Capital Management & Research inc. purchased a new position in Broadcom in the 2nd quarter worth about $31,000. Harborfront Financial Group LLC acquired a new position in Broadcom during the second quarter worth $38,000. DecisionPoint Financial LLC boosted its holdings in shares of Broadcom by 101.9% during the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock worth $36,000 after purchasing an additional 53 shares during the last quarter. Align Financial LLC raised its stake in Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock worth $38,000 after purchasing an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC acquired a new stake in shares of Broadcom during the 3rd quarter worth about $41,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

AVGO has been the subject of several analyst reports. President Capital upped their price objective on Broadcom from $520.00 to $546.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Rosenblatt Securities restated a "buy" rating and issued a $600.00 target price on shares of Broadcom in a report on Tuesday, October 27th. Erste Group Bank lowered Broadcom from a "buy" rating to a "hold" rating in a research note on Tuesday, July 7th. UBS Group downgraded Broadcom from a "hold" rating to a "neutral" rating in a research note on Tuesday, October 27th. Finally, Arete Research raised their target price on Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Broadcom Price Performance

Shares of AVGO stock opened at $326.08 on Monday. The stock has a market cap of $1.56 trillion, a PE ratio of 41.65 and a beta of 1.49. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The firm's 50 day moving average price is $352.81 and its two-hundred day moving average price is $366.96. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

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 48.33%. The company had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same period last year, the company earned $1.69 earnings per share. The firm's revenue was up 85.5% compared to the same quarter last year. As a group, analysts forecast that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a dividend of $0.65 per share. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio is currently 33.21%.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company's semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

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