Broadcom Inc. $AVGO Stock Sold by Jackson Square Capital LLC

Key Points

• Jackson Square Capital reduced its Broadcom position by 6.5% in the third quarter, selling 4,865 shares and retaining 69,785 shares worth approximately $24.5 million. Broadcom remains the firm’s sixth-largest holding, representing 3.7% of its portfolio.
• Other major institutions, including State Street, Bank of America, Wellington Management and UBS, increased their Broadcom holdings, while institutional investors and hedge funds collectively own 76.43% of the stock.
• Broadcom’s outlook remains mixed: analysts maintain a “Moderate Buy” consensus with an average $527.20 price target, while the stock trades below its moving averages amid valuation, AI-bubble and execution concerns. Recent earnings exceeded expectations, with revenue up 85.5% year over year.

Jackson Square Capital LLC lowered its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.5% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 69,785 shares of the semiconductor manufacturer's stock after selling 4,865 shares during the quarter. Broadcom accounts for approximately 3.7% of Jackson Square Capital LLC's investment portfolio, making the stock its 6th largest position. Jackson Square Capital LLC's holdings in Broadcom were worth $24,508,000 at the end of the most recent quarter.

A number of other hedge funds have also recently bought and sold shares of the company. State Street Corp lifted its holdings in Broadcom by 8.7% in 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. Bank of America Corp DE boosted its position in shares of Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Broadcom by 2.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock worth $15,178,195,000 after purchasing an additional 1,140,598 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $11,998,148,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: 10-year NTT DOCOMO agreement: Broadcom will help NTT DOCOMO advance its private cloud using VMware Cloud Foundation. The deal supports recurring software revenue, strengthens VMware’s position in enterprise infrastructure, and could improve confidence in Broadcom’s post-acquisition software strategy. Broadcom to Advance NTT DOCOMO's Private Cloud with VMware Cloud Foundation
• Positive Sentiment: AI-chip momentum remains strong: Reports highlight Broadcom’s AI-chip sales growth of approximately 236%, with recent performance exceeding Wall Street expectations. Continued hyperscaler spending on custom silicon and networking equipment supports the company’s growth outlook. Broadcom Sees AI Chip Sales Up 236%, but Who Is Paying?
• Positive Sentiment: Semiconductor rebound thesis: Short interest in the leveraged SOXL semiconductor ETF has fallen sharply while institutional investors, including JPMorgan, have increased exposure. This suggests some investors view the sector’s sell-off as a temporary valuation reset rather than a deterioration in chip demand. Chip Stocks Are Sliding—Why Is Smart Money Buying?
• Neutral Sentiment: OpenAI fundraising highlights AI demand but benefits Nvidia more directly: OpenAI is reportedly seeking roughly $30 billion at a valuation above $1.4 trillion, while Nvidia agreed to guarantee up to $105 billion of obligations tied to an Ohio campus. The development reinforces AI infrastructure demand, but the announced financing has no direct Broadcom commitment. OpenAI Is Reportedly Raising $30 Billion. Which Chip Stock Gains the Most?
• Negative Sentiment: AI bubble and execution concerns: CEO Hock Tan’s comments comparing AI investment conditions to a “casino,” along with warnings about capital constraints, have unsettled retail investors. Broader concerns about an AI bubble and semiconductor supply bottlenecks are contributing to risk reduction across chip stocks. AI Stocks Are Flashing a Bubble-Burst Warning
• Negative Sentiment: Technical and valuation pressure persists: AVGO is trading well below its 52-week high and below both its 50-day and 200-day moving averages. With a forward growth story already reflected in a high valuation, investors may remain sensitive to any slowdown in AI orders or customer concentration concerns.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of research reports. Citigroup reiterated a "buy" rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. Piper Sandler initiated coverage on shares of Broadcom in a report on Wednesday, September 9th. They set an "overweight" rating and a $460.00 target price for the company. HSBC decreased their price target on shares of Broadcom from $600.00 to $560.00 and set a "buy" rating on the stock in a research report on Thursday, September 3rd. DA Davidson set a $350.00 price target on Broadcom and gave the company a "neutral" rating in a report on Friday, September 4th. Finally, Sanford C. Bernstein reiterated a "buy" rating on shares of Broadcom in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $527.20.

Broadcom Trading Down 0.1%

NASDAQ:AVGO opened at $334.37 on Wednesday. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The firm has a market capitalization of $1.60 trillion, a price-to-earnings ratio of 42.70 and a beta of 1.46. The stock has a fifty day simple moving average of $360.94 and a 200 day simple moving average of $384.47.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The firm had revenue of $29.59 billion for 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%. Broadcom's revenue was up 85.5% on a year-over-year basis. During the same quarter last year, the business posted $1.69 EPS. Sell-side analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently announced 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 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom's dividend payout ratio (DPR) is presently 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 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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