Clearwave Capital LLC Boosts Stake in Broadcom Inc. $AVGO

Key Points

• Clearwave Capital increased its Broadcom stake by 23% in the second quarter, owning 16,710 shares valued at $6.31 million. Institutional investors collectively hold 76.43% of the company.
• Broadcom reported quarterly revenue of $22.19 billion, up 47.9% year over year, and adjusted earnings of $2.44 per share, exceeding analyst expectations. AI semiconductor revenue growth and expanding AI infrastructure demand remain major catalysts.
• Analyst sentiment remains favorable, with 28 Buy ratings and four Holds and an average price target of $493.24, but Broadcom’s elevated valuation—around 69 times earnings—could limit further gains if AI growth slows.

Clearwave Capital LLC boosted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 23.0% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 16,710 shares of the semiconductor manufacturer's stock after purchasing an additional 3,120 shares during the period. Broadcom comprises 3.5% of Clearwave Capital LLC's portfolio, making the stock its 6th biggest holding. Clearwave Capital LLC's holdings in Broadcom were worth $6,312,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. ROSS JOHNSON & Associates LLC boosted its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after acquiring an additional 66 shares during the last quarter. Networth Advisors LLC increased its stake in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares in the last quarter. SWAN Capital LLC increased its stake in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Nvest Wealth Strategies Inc. bought a new position in Broadcom in the 4th quarter worth $33,000. Finally, Family CFO Inc bought a new position in Broadcom in the 4th quarter worth $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on AVGO shares. Truist Financial boosted their price target on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Evercore restated an "outperform" rating and issued a $582.00 price target on shares of Broadcom in a research report on Tuesday, May 19th. Benchmark raised their price objective on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Erste Group Bank reaffirmed a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Finally, Weiss Ratings downgraded Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Twenty-eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $493.24.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI growth remains the primary bullish catalyst. Broadcom’s AI semiconductor revenue increased 143% year over year to $10.8 billion in fiscal second quarter, and CEO Hock Tan reaffirmed his forecast for fiscal 2027 AI semiconductor revenue to exceed $100 billion. Hock Tan Reaffirmed Broadcom's $100 Billion AI Forecast
• Positive Sentiment: Investors continue to view Broadcom as a diversified AI infrastructure play because its custom accelerators and networking products can benefit across competing AI architectures, rather than depending on a single chip design. Broadcom Wins If AI Wins So I Keep Buying
• Positive Sentiment: AMD’s planned Helios rack-scale AI systems could create additional demand for Broadcom components and networking technology, potentially expanding its ecosystem opportunity beyond direct customer programs. AMD’s Helios Launch Could Create Winners Beyond AMD Stock
• Positive Sentiment: Broadcom’s software division joining the Open Secure AI Alliance adds a longer-term cybersecurity and software angle to the company’s AI strategy. Is Broadcom’s Next Big Bet Hidden in Plain Sight?
• Neutral Sentiment: Analysts and investors are comparing Broadcom’s custom-chip and networking model with NVIDIA’s more vertically integrated approach. The comparison supports Broadcom’s differentiation but highlights intense competition for AI infrastructure spending. This Is Where Nvidia Beats Broadcom
• Negative Sentiment: Valuation is the main restraint on the stock. Broadcom trades at a substantial premium to historical earnings levels, with reports citing roughly 71 times trailing earnings and 27 times projected earnings. Continued appreciation therefore depends on rapid AI earnings growth catching up with the share price. Broadcom Trades at 71 Times Earnings
• Negative Sentiment: Crake Asset Management reportedly reduced its Broadcom position by 330,000 shares, providing a modest signal of profit-taking or caution among some institutional investors. Crake Asset Management Trims Broadcom Stake

Insiders Place Their Bets

In related news, Director Harry L. You acquired 1,000 shares of the business's stock in a transaction on Thursday, June 11th. The stock was acquired at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Justine Page sold 1,602 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last quarter. Company insiders own 1.90% of the company's stock.

Broadcom Trading Down 0.0%

Shares of Broadcom stock opened at $416.05 on Thursday. The company has a market capitalization of $1.98 trillion, a P/E ratio of 69.34, a P/E/G ratio of 0.79 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company has a fifty day moving average of $389.67 and a 200 day moving average of $372.47. Broadcom Inc. has a fifty-two week low of $281.87 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same period last year, the firm earned $1.58 earnings per share. The business's quarterly revenue was up 47.9% on a year-over-year basis. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is 43.33%.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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