Commerce Bank Makes New $542.89 Million Investment in Broadcom Inc. $AVGO

Key Points

• Commerce Bank bought 1.44 million Broadcom shares worth approximately $542.9 million in the second quarter, making AVGO about 2.4% of its portfolio and its seventh-largest holding.
• Broadcom reported quarterly revenue of $29.59 billion, up 85.5% year over year, while EPS of $3.32 exceeded estimates. AI semiconductor revenue surged 221% to $16.7 billion, underscoring strong demand for its custom AI accelerators.
• The company’s approximately $34.8 billion fourth-quarter revenue forecast fell slightly short of Wall Street expectations, pressuring the stock despite a “Moderate Buy” analyst consensus and an average price target of $491.97.

Commerce Bank bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 1,437,167 shares of the semiconductor manufacturer's stock, valued at approximately $542,890,000. Broadcom comprises approximately 2.4% of Commerce Bank's investment portfolio, making the stock its 7th biggest position.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in AVGO. Fullerton Advisors LLC grew its position in shares of Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its stake in Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock valued at $1,656,000 after purchasing an additional 25 shares during the last quarter. RFG Holdings Inc. boosted its holdings in Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock valued at $2,631,000 after purchasing an additional 26 shares during the period. Yukon Wealth Management Inc. grew its position in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock worth $774,000 after purchasing an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC increased its holdings in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after purchasing an additional 27 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

Insider Buying and Selling

In related news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Harry L. You bought 1,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the transaction, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold 61,644 shares of company stock valued at $24,016,214 in the last three months. 1.90% of the stock is currently owned by company insiders.

Broadcom Trading Down 0.7%

Shares of AVGO opened at $367.24 on Thursday. The stock's fifty day simple moving average is $384.15 and its 200-day simple moving average is $377.14. The firm has a market capitalization of $1.75 trillion, a PE ratio of 61.21, a price-to-earnings-growth ratio of 0.71 and a beta of 1.44. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted 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. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous 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. As a group, research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on AVGO shares. Weiss Ratings lowered Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $400.00 target price on shares of Broadcom in a research note on Wednesday, August 26th. Susquehanna restated a "positive" rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Erste Group Bank reissued a "hold" rating on shares of Broadcom in a report on Tuesday, July 7th. Finally, UBS Group set a $485.00 price target on Broadcom and gave the company a "buy" rating in a research note on Thursday, June 4th. Twenty-nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $491.97.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.59 billion, up 85.5% year over year, while non-GAAP EPS of $3.32 exceeded the $3.22 analyst consensus. GAAP profit rose sharply to $13.09 billion from $4.14 billion a year earlier. Broadcom third-quarter earnings report
• Positive Sentiment: AI semiconductor revenue reached $16.7 billion, increasing 221% year over year and 54% sequentially, highlighting strong demand for Broadcom’s custom AI accelerators. The company also generated $13.7 billion in free cash flow and declared a quarterly dividend of $0.65 per share. Broadcom AI semiconductor revenue and guidance
• Neutral Sentiment: Broadcom guided to approximately $34.8 billion in fourth-quarter revenue, representing 93% year-over-year growth, with non-GAAP operating margin of about 66%. The outlook still implies substantial growth, but management did not provide an EPS forecast in the reported guidance.
• Negative Sentiment: The fourth-quarter revenue forecast was below Wall Street expectations of roughly $35.0 billion to $35.03 billion. Investors viewed the shortfall as a sign that competition or execution risks could limit further gains from custom AI processors, particularly after the stock’s strong run and premium valuation. Reuters report on Broadcom guidance
• Negative Sentiment: Broadcom’s elevated valuation—approximately 61 times earnings—left little room for a merely solid outlook. Recent insider activity was also heavily weighted toward selling, although this is a secondary consideration compared with the earnings guidance.

About Broadcom

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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