Broadcom Inc. $AVGO Stock Position Lessened by Sapient Capital LLC

Key Points

• Sapient Capital reduced its Broadcom position by 0.3%, selling 1,480 shares and retaining 466,600 shares valued at approximately $163.9 million. Broadcom remains its seventh-largest holding and represents 2.3% of its portfolio.
• Broadcom shares opened at $360.14, down 4.3%, while trading at roughly 46 times earnings. Despite the valuation, the company surpassed quarterly EPS and revenue expectations, with revenue rising 85.5% year over year.
• AI infrastructure remains the main growth driver, with Broadcom reportedly pursuing more than $50 billion in financing for custom AI chips developed with OpenAI. Analysts remain broadly bullish, assigning the stock a “Moderate Buy” consensus rating and an average price target of $527.20, though leverage and valuation risks persist.

Sapient Capital LLC decreased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.3% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 466,600 shares of the semiconductor manufacturer's stock after selling 1,480 shares during the period. Broadcom comprises 2.3% of Sapient Capital LLC's investment portfolio, making the stock its 7th biggest position. Sapient Capital LLC's holdings in Broadcom were worth $163,865,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. CoreCap Advisors LLC lifted its position in shares of Broadcom by 3.7% during the third quarter. CoreCap Advisors LLC now owns 44,219 shares of the semiconductor manufacturer's stock worth $15,458,000 after purchasing an additional 1,580 shares in the last quarter. Artemis Investment Management LLP grew its holdings in shares of Broadcom by 123.6% in the third quarter. Artemis Investment Management LLP now owns 111,892 shares of the semiconductor manufacturer's stock valued at $39,295,000 after purchasing an additional 61,860 shares in the last quarter. Aletheian Wealth Advisors LLC lifted its holdings in Broadcom by 7.8% during the 3rd quarter. Aletheian Wealth Advisors LLC now owns 5,608 shares of the semiconductor manufacturer's stock worth $1,969,000 after buying an additional 408 shares in the last quarter. Apeiron RIA LLC lifted its holdings in Broadcom by 151.5% during the 3rd quarter. Apeiron RIA LLC now owns 4,575 shares of the semiconductor manufacturer's stock worth $1,572,000 after buying an additional 2,756 shares in the last quarter. Finally, YHB Investment Advisors Inc. boosted its position in Broadcom by 76.7% in the 3rd quarter. YHB Investment Advisors Inc. now owns 34,023 shares of the semiconductor manufacturer's stock valued at $11,949,000 after buying an additional 14,772 shares during the period. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Down 4.3%

Broadcom stock opened at $360.14 on Friday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. 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 stock has a market cap of $1.72 trillion, a PE ratio of 45.99 and a beta of 1.46. The stock's fifty day moving average is $371.79 and its two-hundred day moving average is $382.52.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping 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 business had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. During the same period in the prior year, the firm posted $1.69 EPS. The business's quarterly revenue was up 85.5% compared to the same quarter last year. On average, sell-side analysts expect that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors 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 33.21%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is reportedly arranging more than $50 billion in financing for custom AI chips being developed with OpenAI. The project could substantially expand Broadcom’s AI-chip opportunity and validate demand from one of the industry’s largest customers. Apollo Global Management and Blackstone are among the potential lenders, although discussions remain preliminary. Broadcom seeks more than $50 billion to finance OpenAI AI chips
• Positive Sentiment: At the 2026 OCP Global Summit, Broadcom highlighted networking products designed to support scale-up and scale-out AI clusters. Stronger Ethernet networking demand could complement its custom accelerators and switching businesses as hyperscalers expand AI infrastructure. Broadcom Redefines AI Infrastructure with Industry-Leading Networking Innovations
• Positive Sentiment: Analysts and financial commentators continue to point to rapid growth in Broadcom’s custom AI-chip and networking businesses. The company’s technology was also included in Arista Networks’ new open Ethernet rack initiative, reinforcing Broadcom’s role in the broader AI infrastructure ecosystem. Broadcom CEO Holds $350B Outlook Strong
• Neutral Sentiment: Heavy trading in Broadcom call options and bullish technical commentary indicate that some traders expect a rebound, but these signals reflect positioning rather than changes to the company’s fundamentals. Stock Traders Buy High Volume of Broadcom Call Options
• Negative Sentiment: The proposed financing raises concerns about leverage, repayment risk and whether AI chips could become obsolete before long-term debt matures. The financing is not finalized, and its size and terms could change, creating uncertainty for investors. SpaceX, Broadcom and Oracle All Want Billions in AI Chip Debt
• Negative Sentiment: Broadcom’s valuation remains demanding at roughly 46 times earnings, leaving the stock vulnerable to profit-taking if investors question the pace of AI spending or the company’s ability to convert projected growth into cash flow.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on AVGO. Weiss Ratings cut Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Dbs Bank upgraded Broadcom to a "moderate buy" rating in a report on Thursday, June 18th. Rosenblatt Securities started coverage on Broadcom in a research report on Thursday, September 3rd. They issued a "buy" rating and a $600.00 price target on the stock. Raymond James Financial reiterated an "outperform" rating and issued a $475.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. Finally, JPMorgan Chase & Co. restated a "buy" rating on shares of Broadcom in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $527.20.

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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