Cornerstone Advisors LLC Invests $92.52 Million in Broadcom Inc. $AVGO

Key Points

• Cornerstone Advisors acquired 244,929 Broadcom shares worth approximately $92.52 million, making AVGO its seventh-largest holding and representing about 3% of its portfolio. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly EPS of $2.44, exceeding estimates, while revenue rose 47.9% year over year to $22.19 billion. The company also pays a quarterly dividend of $0.65, equivalent to a 0.7% annual yield.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $491.97, though high valuation, AI-spending dependence, debt-funded infrastructure investment and customer concentration remain key risks.

Cornerstone Advisors LLC acquired a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 244,929 shares of the semiconductor manufacturer's stock, valued at approximately $92,522,000. Broadcom comprises about 3.0% of Cornerstone Advisors LLC's investment portfolio, making the stock its 7th biggest position.

A number of other hedge funds have also bought and sold shares of the company. ROSS JOHNSON & Associates LLC boosted its position 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 valued at $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC increased its holdings in Broadcom by 261.9% in the fourth 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. Networth Advisors LLC lifted its stake in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares during the period. Nvest Wealth Strategies Inc. bought a new position in shares of Broadcom during the 4th quarter worth approximately $33,000. Finally, Camelot Portfolios LLC bought a new position in shares of Broadcom during the 4th quarter worth approximately $45,000. Institutional investors own 76.43% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Bank of America increased their target price on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. The Goldman Sachs Group restated a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Evercore reiterated an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Finally, BMO Capital Markets initiated coverage on shares of Broadcom in a research report on Thursday, August 20th. They set an "outperform" rating and a $455.00 price objective on the stock. Twenty-nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $491.97.

Broadcom Stock Up 4.5%

AVGO stock opened at $371.54 on Friday. The firm has a market capitalization of $1.77 trillion, a PE ratio of 61.92, a P/E/G ratio of 0.68 and a beta of 1.45. 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 Inc. has a twelve month low of $287.17 and a twelve month high of $495.00. The stock's 50 day moving average is $385.92 and its 200-day moving average is $376.31.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the company posted $1.58 earnings per share. Broadcom's revenue was up 47.9% compared to the same quarter last year. Sell-side analysts expect that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio is currently 43.33%.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: OpenAI chip partnership highlights custom-AI opportunity. Broadcom reportedly handled the physical implementation and supplied key technology for OpenAI’s “Jalapeño” inference chip, which OpenAI says can deliver up to 1.9 times more AI work per watt than comparison systems. The project reinforces Broadcom’s role as a leading provider of custom AI silicon and networking infrastructure. OpenAI Built an Nvidia-Beating Inference Chip in Nine Months
• Positive Sentiment: AI semiconductor momentum remains the key growth driver. Analysts point to accelerating demand for Broadcom’s custom XPUs, networking products, and AI data-center infrastructure, although NVIDIA and AMD are increasing competition. Broadcom Rides AI Semiconductor Growth
• Positive Sentiment: Kyndryl alliance supports VMware and private-cloud growth. The partnership expands Broadcom’s VMware Cloud Foundation reach among global enterprises, potentially strengthening recurring software revenue and demand for secure private-cloud modernization. New Kyndryl Partnership Strengthens Private Cloud and AI Growth Strategy
• Positive Sentiment: Brokerage support and institutional buying add confidence. BMO initiated coverage with an Outperform rating and a $455 target, while ARK Investment Management purchased 57,705 AVGO shares across three funds. BMO Starts Broadcom at Outperform With $455 Target
• Neutral Sentiment: NVIDIA’s earnings lifted the broader chip sector. Broadcom traded higher alongside semiconductor stocks, while investors also looked ahead to Broadcom’s next earnings report for evidence that AI demand is translating into sustained revenue and cash-flow growth. Broadcom Stock Making Moves Ahead of Earnings
• Neutral Sentiment: RBC reaffirmed a Sector Perform rating but set a $400 price target, implying moderate upside while signaling that much of the AI optimism may already be reflected in the shares.
• Negative Sentiment: Valuation and AI financing risks remain concerns. After a roughly sevenfold five-year gain, some analysis argues that Broadcom’s valuation depends heavily on continued AI growth. Debt-funded infrastructure spending and reliance on a limited group of major customers could increase downside risk if customer plans or AI investment slow. Broadcom Stock May Trade at a Discount After AI Debt Concerns

Insider Activity

In related news, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The stock was purchased at an average cost 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 $14,369,743.62. This 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 over the last ninety days. Company insiders own 1.90% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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