Broadcom Inc. $AVGO Stock: Gunderson Capital Management LLC Boosts Holdings

Key Points

• Gunderson Capital Management increased its Broadcom stake by 75.7% in the third quarter, bringing its holdings to 40,673 shares valued at approximately $14.3 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom’s AI business remains a key growth driver, with reported AI chip sales growth and strong demand for custom accelerators, though concerns persist around AI investment risks, leverage, and potential financing exposure.
• Analysts maintain a generally bullish outlook, with Broadcom receiving a “Moderate Buy” consensus rating and an average price target of $527.20. The company recently exceeded quarterly earnings and revenue estimates, with revenue up 85.5% year over year.

Gunderson Capital Management LLC lifted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 75.7% in the third quarter, according to its most recent filing with the SEC. The firm owned 40,673 shares of the semiconductor manufacturer's stock after acquiring an additional 17,520 shares during the period. Broadcom makes up about 3.9% of Gunderson Capital Management LLC's investment portfolio, making the stock its 11th biggest position. Gunderson Capital Management LLC's holdings in Broadcom were worth $14,284,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of the stock. Networth Advisors LLC raised its stake in Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares in the last quarter. Core Capital Management & Research inc. acquired a new position in Broadcom in the second quarter valued at about $31,000. Harborfront Financial Group LLC bought a new stake in Broadcom during the second quarter worth about $38,000. IMG Wealth Management Inc. acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $64,000. Finally, Gilpin Wealth Management LLC grew its position in Broadcom by 290.2% during the 3rd quarter. Gilpin Wealth Management LLC now owns 199 shares of the semiconductor manufacturer's stock worth $70,000 after acquiring an additional 148 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI business remains a major growth driver. Reports highlight 221% growth in AI chip sales, strong demand for custom accelerators, and hyperscaler interest in alternatives to Nvidia’s higher-cost architecture. Some analysts believe Broadcom could benefit as AI spending broadens beyond Nvidia. Prediction: Broadcom Could Be the AI Winner After Nvidia
• Positive Sentiment: Bullish coverage points to Broadcom’s combination of high-margin semiconductors, networking products, custom silicon, and recurring infrastructure software revenue. Supporters argue that weaker non-AI segments are masking strong execution and creating a long-term buying opportunity. I’m Simply Not Worried About Broadcom’s Multi-Segment Drag
• Neutral Sentiment: Comparisons with Nvidia, Applied Materials, Marvell Technology, and SK Hynix emphasize Broadcom’s differentiated exposure to networking and custom AI chips, although SK Hynix recently showed stronger overall revenue momentum. These comparisons reinforce the investment debate rather than introduce a new company-specific catalyst. Broadcom vs. SK Hynix Revenue Trends
• Negative Sentiment: Tan cautioned that AI investing is becoming “casino”-like and that investors may underestimate how difficult it will be for AI companies to earn returns as spending and financing costs rise. He warned that tighter capital availability could slow AI infrastructure expansion. Broadcom CEO Hock Tan Warning About Casino-Like Investing
• Negative Sentiment: Investors are also examining potential off-balance-sheet financing and a reported $50 billion debt arrangement, increasing concern about leverage and counterparty risks if AI demand or customer returns weaken. Broadcom Off-Balance-Sheet Financing Risk
• Negative Sentiment: Apple’s reported cuts to iPhone 18 Pro component orders raise questions about Broadcom’s smartphone-related sales, while the continuing technology sell-off is weighing on high-valuation AI stocks broadly. Apple Cut iPhone 18 Orders

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Truist Financial cut their price target on Broadcom from $550.00 to $520.00 and set a "buy" rating for the company in a report on Thursday, September 3rd. President Capital upped their price target on Broadcom from $520.00 to $546.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. The Goldman Sachs Group lifted their price objective on Broadcom from $525.00 to $540.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. TD Cowen reiterated a "buy" rating and set a $475.00 price target (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. Finally, KeyCorp reaffirmed an "overweight" rating and set a $575.00 price objective on shares of Broadcom in a research note on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $527.20.

Broadcom Price Performance

AVGO stock opened at $344.33 on Friday. The stock has a market cap of $1.64 trillion, a PE ratio of 43.98 and a beta of 1.46. The stock has a 50-day moving average price of $366.31 and a two-hundred day moving average price of $383.89. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

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. The company had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm's revenue was up 85.5% compared to the same quarter last year. During the same period last year, the company earned $1.69 earnings per share. Equities analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

About Broadcom

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

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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