Deepwater Asset Management LLC Invests $1.39 Million in Broadcom Inc. $AVGO

Key Points

• Deepwater Asset Management initiated a Broadcom position worth approximately $1.39 million by purchasing 3,668 shares in the second quarter. Several other institutional investors also added stakes, with institutions collectively owning 76.43% of AVGO.
• Broadcom reported quarterly earnings of $2.44 per share and revenue of $22.19 billion, exceeding analyst estimates, while revenue increased 47.9% year over year. The company also pays a $0.65 quarterly dividend, yielding about 0.7% annually.
• Analysts maintain a largely positive outlook, with a consensus “Moderate Buy” rating and a $491.97 price target. However, risks include potential competition from hyperscalers’ internally developed chips and possible leverage from as much as $80 billion in debt financing for an AI-related transaction.

Deepwater Asset Management LLC purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,668 shares of the semiconductor manufacturer's stock, valued at approximately $1,386,000.

A number of other hedge funds have also recently added to or reduced their stakes in AVGO. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in Broadcom in the second quarter valued at about $426,000. Element Pointe Advisors LLC acquired a new position in Broadcom during the second quarter worth about $2,618,000. M. Kulyk & Associates LLC acquired a new position in Broadcom during the second quarter worth about $8,177,000. Aljian Capital Management LLC acquired a new stake in shares of Broadcom in the 2nd quarter valued at approximately $9,881,000. Finally, K2 Principal Fund L.P. acquired a new stake in shares of Broadcom in the 2nd quarter valued at approximately $1,322,000. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

Shares of AVGO stock opened at $368.79 on Friday. The company has a market cap of $1.75 trillion, a price-to-earnings ratio of 61.47, a price-to-earnings-growth ratio of 0.71 and a beta of 1.45. Broadcom Inc. has a 52 week low of $287.17 and a 52 week 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. The firm has a 50 day moving average of $385.07 and a 200-day moving average of $376.26.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.58 EPS. On average, equities analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. 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%.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Mizuho remains bullish ahead of earnings, citing Broadcom’s nearly uninterrupted 30-quarter earnings track record, deeply negative investor sentiment, and the possibility that CEO Hock Tan will directly address concerns about custom ASIC competition and Google’s in-house chips. Mizuho is bullish on Broadcom ahead of Sept. 2 earnings
• Positive Sentiment: Broadcom’s partnership with OpenAI on the Jalapeño inference chip highlights demand for specialized AI infrastructure. OpenAI says the chip can deliver substantially better performance per watt than comparison systems, potentially supporting Broadcom’s custom-chip and networking growth. Why BNP thinks Jalapeño could benefit Broadcom stock
• Positive Sentiment: Analysts argue Broadcom offers a better AI risk-reward profile than AMD because of its broader exposure across custom accelerators, networking, and infrastructure software, along with a comparatively lower valuation. Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward?
• Positive Sentiment: A new Kyndryl collaboration expands VMware Cloud Foundation’s reach among enterprise customers, reinforcing Broadcom’s private-cloud and software modernization strategy. Broadcom Kyndryl partnership
• Neutral Sentiment: Royal Bank of Canada reiterated its “Sector Perform” rating, suggesting balanced expectations rather than a strong near-term catalyst. Royal Bank of Canada reiterates Sector Perform
• Negative Sentiment: Broadcom is reportedly considering $70 billion to $80 billion of debt financing for an AI chip-related transaction involving companies including Anthropic. The potential borrowing could accelerate growth but raises leverage, execution, and repayment risks. Broadcom nears $70B debt financing deal
• Negative Sentiment: Investors remain concerned that Google’s and other hyperscalers’ internally designed chips could pressure Broadcom’s custom-silicon revenue. Competition from Marvell, NVIDIA, and AMD adds to the risk, while Broadcom’s elevated earnings multiple leaves less room for disappointment. Marvell and Google custom silicon deal

Insider Activity at Broadcom

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

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Morgan Stanley set a $502.00 target price on Broadcom and gave the company an "overweight" rating in a research report on Thursday, June 4th. The Goldman Sachs Group restated a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Weiss Ratings lowered shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. raised their price target on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Twenty-nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $491.97.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source