Broadcom Inc. $AVGO Stock: Oppenheimer & Co. Inc. Increases Position

Key Points

• Oppenheimer & Co. increased its Broadcom stake by 1.1% in the third quarter, bringing its holdings to 313,196 shares valued at approximately $110 million. Institutional investors collectively own 76.43% of Broadcom.
• Analysts remain broadly optimistic, with Broadcom holding a consensus “Moderate Buy” rating and a $530.52 target price. The outlook is supported by expected AI-chip demand from customers such as Anthropic and Meta, though execution, financing obligations, and elevated valuation remain risks.
• Broadcom shares opened at $326.08, well below their 52-week high of $495 and below both their 50-day and 200-day moving averages. The company recently reported 85.5% year-over-year revenue growth and declared a quarterly dividend of $0.65 per share.

Oppenheimer & Co. Inc. increased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.1% during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 313,196 shares of the semiconductor manufacturer's stock after acquiring an additional 3,321 shares during the period. Broadcom makes up approximately 1.2% of Oppenheimer & Co. Inc.'s holdings, making the stock its 10th largest holding. Oppenheimer & Co. Inc.'s holdings in Broadcom were worth $109,991,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of AVGO. Networth Advisors LLC raised its stake in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 71 shares during the period. Core Capital Management & Research inc. purchased a new position in shares of Broadcom in the second quarter valued at $31,000. Harborfront Financial Group LLC purchased a new position in shares of Broadcom in the second quarter valued at $38,000. Align Financial LLC grew its holdings in Broadcom by 67.2% during the 3rd quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock valued at $38,000 after purchasing an additional 45 shares in the last quarter. Finally, Curry Webb Wealth Management LLC acquired a new stake in Broadcom during the 3rd quarter valued at $41,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Broadcom News

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

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Fox Advisors raised shares of Broadcom to an "outperform" rating in a research note on Thursday, September 3rd. Raymond James Financial reissued an "outperform" rating and issued a $475.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. Wedbush started coverage on Broadcom in a research note on Tuesday. They set an "outperform" rating for the company. The Goldman Sachs Group lifted their target price on Broadcom from $525.00 to $540.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Finally, Piper Sandler initiated coverage on Broadcom in a research note on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $530.52.

Broadcom Stock Down 5.5%

NASDAQ:AVGO opened at $326.08 on Friday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The company has a market capitalization of $1.56 trillion, a price-to-earnings ratio of 41.65 and a beta of 1.46. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The stock has a 50-day simple moving average of $352.81 and a 200 day simple moving average of $366.96.

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

Broadcom Announces Dividend

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