Broadcom Inc. $AVGO Stock Sold by Hamlin Capital Management LLC

Key Points

• Hamlin Capital Management cut its Broadcom stake by 6.1% in the third quarter, selling 33,357 shares while retaining 517,570 shares valued at approximately $181.8 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom is reportedly exploring more than $50 billion in financing for custom AI chips developed with OpenAI, while new networking products reinforce its AI infrastructure position. However, the proposed financing raises concerns about credit, customer-concentration and chip-obsolescence risks.
• AVGO shares fell 3.8% to $362.31, despite strong quarterly results that exceeded estimates and included 85.5% year-over-year revenue growth. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $527.20.

Hamlin Capital Management LLC reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.1% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 517,570 shares of the semiconductor manufacturer's stock after selling 33,357 shares during the period. Broadcom makes up 4.4% of Hamlin Capital Management LLC's portfolio, making the stock its 7th largest holding. Hamlin Capital Management LLC's holdings in Broadcom were worth $181,765,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Legal & General Group Plc bought a new position in Broadcom during the second quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp bought a new stake in Broadcom in the 2nd quarter worth approximately $10,528,191,000. Jupiter Topco LLC purchased a new stake in shares of Broadcom during the 2nd quarter worth approximately $7,396,271,000. State Street Corp boosted its position in shares of Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after acquiring an additional 16,651,378 shares during the last quarter. Finally, Deutsche Bank AG purchased a new position in shares of Broadcom in the second quarter valued at $5,661,216,000. Institutional investors own 76.43% of the company's stock.

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 size of the proposed deal highlights strong expected demand for Broadcom’s custom accelerators and could materially expand its AI revenue opportunity. 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 showcased networking technologies designed to support scale-up, scale-out and scale-across AI clusters. The announcements reinforce its position as a supplier of both custom AI silicon and the networking infrastructure needed by hyperscale data centers. Broadcom Redefines AI Infrastructure with Industry-Leading Networking Innovations
• Neutral Sentiment: Options activity was unusually bullish, with investors purchasing approximately 426,000 AVGO call options—about 34% above average volume. This signals speculative optimism but does not change Broadcom’s underlying financial outlook.
• Negative Sentiment: Investors are concerned that financing tens of billions of dollars for AI chips could increase credit and customer-concentration risk. Critics also warn that chips may become obsolete before long-term loans mature, potentially leaving Broadcom or its customers exposed if AI spending slows. The uncertainty is particularly significant because Broadcom trades at roughly 46 times earnings and has already delivered substantial AI-driven growth expectations.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on AVGO shares. President Capital upped their price target on shares of Broadcom from $520.00 to $546.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Rosenblatt Securities started coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $600.00 price objective for the company. The Goldman Sachs Group upped their target price on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Arete Research increased their price target on shares of Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Finally, Citic Securities upgraded Broadcom to a "buy" rating and lifted their price target for the stock from $450.00 to $525.00 in a research report on Tuesday, September 8th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $527.20.

Broadcom Trading Down 3.8%

Shares of AVGO traded down $14.20 during midday trading on Thursday, hitting $362.31. The stock had a trading volume of 11,346,877 shares, compared to its average volume of 25,038,686. The stock's 50 day moving average is $372.35 and its 200 day moving average is $382.17. The firm has a market cap of $1.73 trillion, a PE ratio of 46.27 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate 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 in the prior year, the firm posted $1.69 EPS. 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 fiscal year.

Broadcom Announces Dividend

The firm also recently announced 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 dividend yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom's payout ratio is 33.21%.

Insider Activity at Broadcom

In other news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.90% of the company's stock.

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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