Gradient Investments LLC Boosts Stake in Broadcom Inc. $AVGO

Key Points

• Gradient Investments increased its Broadcom stake by 8.8% in the second quarter, adding 16,582 shares to own 205,399 shares valued at approximately $77.6 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported strong results, including quarterly revenue of $22.19 billion, up 47.9% year over year, and EPS of $2.44, exceeding estimates. AI semiconductor revenue and bookings remain major growth drivers, while new VMware software capabilities support its infrastructure-software business.
• Analysts maintain a generally bullish outlook, with 28 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $493.24. However, the stock trades at a high valuation, and insiders have sold 61,644 shares worth about $24.0 million over the past three months.

Gradient Investments LLC lifted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.8% in the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 205,399 shares of the semiconductor manufacturer's stock after acquiring an additional 16,582 shares during the period. Broadcom accounts for about 1.1% of Gradient Investments LLC's investment portfolio, making the stock its 19th largest holding. Gradient Investments LLC's holdings in Broadcom were worth $77,590,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Brighton Jones LLC raised its holdings in Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in shares of Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after buying an additional 756 shares in the last quarter. United Bank boosted its holdings in shares of Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock valued at $392,000 after buying an additional 1,014 shares in the last quarter. Sivia Capital Partners LLC grew its position in shares of Broadcom by 10.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock worth $3,499,000 after buying an additional 1,160 shares during the period. Finally, Capital & Planning LLC grew its position in shares of Broadcom by 10.5% in the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock worth $1,098,000 after buying an additional 378 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Activity

In related news, insider Mark David Brazeal sold 25,000 shares of the business's 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 completion of the transaction, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. The trade was a 11.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 61,644 shares of company stock worth $24,016,214. Corporate insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand remains the primary catalyst. Analysts highlighted Broadcom’s record quarterly revenue of approximately $22.2 billion, 79% growth in semiconductor revenue, 143% growth in AI semiconductor revenue to $10.8 billion and more than $30 billion in AI bookings. The figures support the view that hyperscaler spending on custom chips, networking and connectivity is still expanding. Is the AI Selloff a Buying Opportunity? The Data Says Yes
• Positive Sentiment: Broadcom is being positioned as a beneficiary of AI infrastructure bottlenecks. Commentary identified networking equipment, optical interconnects and power delivery as supply-constrained areas, with Broadcom named among companies that could benefit as data-center construction accelerates. Other reports described the company as a leading AI infrastructure stock and a potentially attractive long-term chip investment. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026 3 AI Infrastructure Stocks That Could Make You Rich in August
• Positive Sentiment: Product updates add support for Broadcom’s software business. New capabilities for VMware vDefend and Avi Load Balancer are intended to improve cybersecurity, performance and operational efficiency in private-cloud environments, potentially strengthening Broadcom’s infrastructure-software offering as enterprises prepare for AI workloads. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: Broadcom was included in stock screens favoring companies with high returns on equity and strong earnings growth. The favorable fundamental profile supports investor interest, but the articles offered no new company-specific financial data. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally
• Negative Sentiment: Risks include stretched valuation and broader-market concerns. Coverage warned that AI stocks may face a normal pullback after a strong rally, while oil-price increases could revive inflation concerns. One investment firm also disclosed that it sold 3,867 Broadcom shares, though the transaction appears minor relative to the company’s overall market value. SCS Capital Trims Broadcom Stake

Broadcom Price Performance

AVGO opened at $427.76 on Friday. The stock has a 50-day moving average price of $392.99 and a 200-day moving average price of $370.45. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The firm has a market cap of $2.04 trillion, a PE ratio of 71.29, a P/E/G ratio of 0.80 and a beta of 1.45. Broadcom Inc. has a 1 year low of $281.87 and a 1 year high of $495.00.

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 analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter in the previous year, the business posted $1.58 EPS. Broadcom's revenue was up 47.9% compared to the same quarter last year. Sell-side analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom's dividend payout ratio is currently 43.33%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AVGO. Oppenheimer reiterated an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. DA Davidson boosted their price objective on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. Evercore restated an "outperform" rating and issued a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $525.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Finally, Weiss Ratings lowered shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 30th. Twenty-eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Company 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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