EFG International AG Invests $132.48 Million in Broadcom Inc. $AVGO

Key Points

• EFG International AG acquired 350,765 Broadcom shares worth approximately $132.5 million in the second quarter, making Broadcom its ninth-largest holding and 2.4% of its portfolio. Institutional investors collectively own 76.43% of the stock.
• Broadcom exceeded quarterly expectations with adjusted earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. The company declared a quarterly dividend of $0.65 per share, while analysts maintain a consensus “Moderate Buy” rating and a $500.60 average price target.
• Despite strong AI demand and bullish long-term commentary, shares face pressure from slightly weaker-than-expected fourth-quarter revenue guidance, potential margin compression, customer concentration and data-center supply constraints. Several insiders also sold shares recently, including transactions totaling $24.0 million over the past 90 days.

EFG International AG acquired a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 350,765 shares of the semiconductor manufacturer's stock, valued at approximately $132,482,000. Broadcom comprises 2.4% of EFG International AG's investment portfolio, making the stock its 9th largest holding.

Other institutional investors and hedge funds have also bought and sold shares of the company. Norges Bank bought a new position in shares of Broadcom in the 4th quarter worth $24,252,196,000. Legal & General Group Plc purchased a new stake in shares of Broadcom during the 2nd quarter valued at $11,998,148,000. Bank of New York Mellon Corp bought a new stake in shares of Broadcom during the 2nd quarter worth $10,528,191,000. Deutsche Bank AG bought a new stake in shares of Broadcom during the 2nd quarter worth $5,661,216,000. Finally, Canada Pension Plan Investment Board purchased a new position in Broadcom in the second quarter worth $4,920,178,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on AVGO shares. JPMorgan Chase & Co. increased their target price on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Erste Group Bank reaffirmed a "hold" rating on shares of Broadcom in a research note on Tuesday, July 7th. KeyCorp reiterated an "overweight" rating and issued a $575.00 price objective on shares of Broadcom in a report on Thursday. Benchmark increased their price objective on Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Finally, Jefferies Financial Group began coverage on Broadcom in a report on Thursday. They set a "buy" rating on the stock. Thirty-one research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $500.60.

Broadcom Price Performance

AVGO stock opened at $357.89 on Friday. The firm has a market cap of $1.70 trillion, a P/E ratio of 45.71, a P/E/G ratio of 0.68 and a beta of 1.44. The firm's fifty day moving average is $383.57 and its 200 day moving average is $377.23. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.01 and a current ratio of 2.50.

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 the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. 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. The firm's revenue for the quarter was up 85.5% on a year-over-year basis. Research analysts predict that Broadcom Inc. will post 10.25 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's payout ratio is 33.21%.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story
• Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings
• Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders.
• Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher
• Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth.
• Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle.

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction that occurred on 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. The trade was a 5.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

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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