Broadcom Inc. $AVGO Stock: Montrusco Bolton Investments Inc. Trims Holdings

Key Points

• Montrusco Bolton Investments reduced its Broadcom stake by 26.5% in the third quarter, selling 168,775 shares and retaining 468,632 shares valued at approximately $164.6 million. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom continues to benefit from strong AI-related demand, particularly for custom accelerators and networking products, while its VMware software expansion could support recurring revenue. However, management has warned that data-center financing and elevated valuations may pose risks to the broader AI investment cycle.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $527.20. Broadcom recently exceeded quarterly earnings and revenue expectations, reporting 85.5% year-over-year revenue growth, and declared a $0.65 quarterly dividend.

Montrusco Bolton Investments Inc. trimmed its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 26.5% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 468,632 shares of the semiconductor manufacturer's stock after selling 168,775 shares during the quarter. Broadcom comprises 2.7% of Montrusco Bolton Investments Inc.'s portfolio, making the stock its 14th largest holding. Montrusco Bolton Investments Inc.'s holdings in Broadcom were worth $164,579,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the business. Financial Futures Ltd Liability Co. acquired a new position in Broadcom during the 3rd quarter worth $205,000. First County Bank CT increased its holdings in shares of Broadcom by 5.0% during the third quarter. First County Bank CT now owns 12,241 shares of the semiconductor manufacturer's stock valued at $4,299,000 after purchasing an additional 584 shares during the period. Sage Capital Advisors llc increased its holdings in shares of Broadcom by 1.4% during the third quarter. Sage Capital Advisors llc now owns 15,303 shares of the semiconductor manufacturer's stock valued at $5,374,000 after purchasing an additional 204 shares during the period. McGlone Suttner Wealth Management Inc. raised its stake in shares of Broadcom by 0.4% during the third quarter. McGlone Suttner Wealth Management Inc. now owns 8,219 shares of the semiconductor manufacturer's stock valued at $2,886,000 after purchasing an additional 36 shares in the last quarter. Finally, Steel Grove Capital Advisors LLC raised its stake in shares of Broadcom by 1.7% during the third quarter. Steel Grove Capital Advisors LLC now owns 5,580 shares of the semiconductor manufacturer's stock valued at $1,960,000 after purchasing an additional 95 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand and custom-chip growth remain key bullish catalysts. Broadcom’s custom AI accelerators and networking products are supported by multiyear hyperscaler commitments, allowing it to participate in the AI market without competing directly with Nvidia’s general-purpose GPUs. Analysts also argue that Google’s increasing use of internally designed chips could create more demand for Broadcom’s engineering and manufacturing expertise. Broadcom Is Building an AI Business Unlike Nvidia’s Broadcom and Google’s Custom Chips
• Positive Sentiment: Management has highlighted continued AI momentum. CEO Hock Tan reportedly raised AI revenue guidance while describing Broadcom’s strategy as focused on disciplined, long-term customer relationships. The company’s VMware HyperArmor launch also expands its infrastructure-software offering by improving protection for VMware Cloud Foundation workloads, potentially supporting recurring software revenue. Broadcom Introduces VMware HyperArmor
• Neutral Sentiment: Capital availability is emerging as the principal AI bottleneck. Tan said the limiting factor may be financing data-center construction and infrastructure—not memory chips. This supports Broadcom’s long-term opportunity but also underscores that AI expansion depends on customers’ ability to sustain enormous capital spending. Broadcom CEO Warns of AI Capital Crunch
• Negative Sentiment: Tan’s “casino” comments reinforce bubble and valuation fears. His warning that many AI investors do not fully understand their exposure may encourage caution, even though Broadcom itself is benefiting from the spending boom.
• Negative Sentiment: Funding and sector risks are weighing on sentiment. Reports about Broadcom’s potential $42 billion financing arrangement tied to Anthropic raise questions about counterparty exposure and leverage. Separately, semiconductor-equipment shares are retreating after a strong year, signaling profit-taking across the AI trade. Broadcom’s $42 Billion Anthropic Financing Bet

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Raymond James Financial reaffirmed an "outperform" rating and issued a $475.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Arete Research boosted their price target on shares of Broadcom from $488.00 to $530.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday. Finally, Evercore set a $578.00 price objective on shares of Broadcom and gave the company an "outperform" rating in a report on Thursday, September 3rd. One research 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 company's stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average price target of $527.20.

Broadcom Price Performance

Shares of Broadcom stock traded up $2.58 during trading on Tuesday, hitting $357.31. The stock had a trading volume of 17,229,419 shares, compared to its average volume of 25,002,436. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The firm has a market cap of $1.71 trillion, a P/E ratio of 45.63 and a beta of 1.46. The business has a fifty day moving average of $370.49 and a two-hundred day moving average of $383.05. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company's quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter last year, the business posted $1.69 earnings per share. On average, sell-side analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

Broadcom Profile

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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