Global Wealth Strategies & Associates Grows Stake in Broadcom Inc. $AVGO

Key Points

• Global Wealth Strategies & Associates increased its Broadcom stake by 165.2% in the third quarter, bringing its holdings to 2,872 shares valued at approximately $1.01 million. Institutional investors collectively own 76.43% of Broadcom.
• Wall Street remains broadly bullish, with 37 analysts rating the stock a Buy, one issuing a Strong Buy and three assigning a Hold; the consensus price target is $527.20. Broadcom also reported quarterly EPS and revenue above estimates, with revenue up 85.5% year over year.
• Broadcom’s AI growth outlook is tied closely to Anthropic, including potential financing of up to $42 billion and substantial future chip commitments. Investors are also weighing risks from customer concentration, counterparty exposure and the possibility that AI demand is being amplified by circular financing arrangements.

Global Wealth Strategies & Associates increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 165.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,872 shares of the semiconductor manufacturer's stock after buying an additional 1,789 shares during the period. Global Wealth Strategies & Associates' holdings in Broadcom were worth $1,009,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. State Street Corp raised its position in shares of Broadcom by 8.7% during the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock worth $75,367,711,000 after purchasing an additional 16,651,378 shares during the period. Bank of America Corp DE grew its position in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares during the period. Wellington Management Group LLP grew its position in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after purchasing an additional 1,892,721 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Broadcom by 2.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock valued at $15,178,195,000 after purchasing an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Broadcom during the 2nd quarter valued at $11,998,148,000. 76.43% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Benchmark raised their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Cantor Fitzgerald raised their price target on shares of Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research report on Thursday, September 3rd. Raymond James Financial reissued an "outperform" rating and set a $475.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Bank of America dropped their target price on Broadcom from $530.00 to $460.00 and set a "buy" rating on the stock in a report on Thursday, September 3rd. Finally, Evercore set a $578.00 price target on Broadcom and gave the stock an "outperform" rating in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $527.20.

Broadcom Stock Performance

Shares of Broadcom stock opened at $343.64 on Friday. The business's fifty day simple moving average is $373.28 and its 200 day simple moving average is $380.85. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The firm has a market capitalization of $1.64 trillion, a P/E ratio of 43.89 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business's revenue was up 85.5% compared to the same quarter last year. During the same period last year, the firm posted $1.69 EPS. As a group, analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reportedly plans to provide Anthropic with up to $42 billion in financing to lease chips and fund AI infrastructure. The arrangement could support significant future demand for Broadcom’s custom AI accelerators, networking equipment and related infrastructure. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Anthropic’s IPO prospectus indicates Broadcom could become its largest customer next year. Anthropic has committed to approximately $125.2 billion of five-year TPU computing capacity, strengthening the outlook for Broadcom’s AI-related revenue growth. Broadcom Stock Rises. Anthropic and Broadcom Are Becoming More Intertwined.
• Neutral Sentiment: The financing may be convertible into Anthropic shares, potentially giving Broadcom equity upside if Anthropic’s valuation rises or it completes a successful IPO. However, the structure also links Broadcom’s returns to Anthropic’s ability to raise capital and expand profitably. Broadcom to provide Anthropic with up to $42 billion in financing
• Negative Sentiment: Investors are questioning the risk of a circular AI-investment arrangement: Broadcom would finance Anthropic, while Anthropic uses the funds to purchase or lease Broadcom-linked infrastructure. This raises concerns about customer concentration, credit exposure and whether reported AI demand is sustainable without continued external financing. Broadcom to lend Anthropic up to $42 billion to lease chips
• Negative Sentiment: Anthropic’s reported infrastructure obligations are extremely large—about $161.2 billion in Broadcom lease commitments and $518 billion overall—intensifying concerns about counterparty risk and the possibility of an AI-spending slowdown or “AI bubble.” Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

Insider Activity at Broadcom

In related news, Director Gayla Delly sold 1,890 shares of the company'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 transaction, 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 Securities & Exchange Commission, which is accessible through this link. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction 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 transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 51,890 shares of company stock valued at $20,241,368. 1.90% of the stock is currently owned by company insiders.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

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.