Ninety One North America Inc. Sells 7,852 Shares of Broadcom Inc. $AVGO

Key Points

• Ninety One North America cut its Broadcom stake by 20.9%, selling 7,852 shares and retaining 29,686 shares valued at approximately $10.4 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly revenue of $29.59 billion, up 85.5% year over year, while EPS of $3.32 exceeded analyst estimates. Analysts maintain a broadly bullish view, with a consensus “Moderate Buy” rating and a $527.20 price target.
• Broadcom’s AI-chip and custom-accelerator demand remain major growth drivers, but investors face risks from high valuation, potential financing and leverage concerns, and weaker smartphone demand following reported Apple order cuts.

Ninety One North America Inc. reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 20.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 29,686 shares of the semiconductor manufacturer's stock after selling 7,852 shares during the period. Ninety One North America Inc.'s holdings in Broadcom were worth $10,425,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Turtle Creek Wealth Advisors LLC lifted its position in Broadcom by 4.3% in the third quarter. Turtle Creek Wealth Advisors LLC now owns 79,944 shares of the semiconductor manufacturer's stock valued at $28,075,000 after purchasing an additional 3,294 shares during the last quarter. WealthPlan Investment Management LLC boosted its stake in shares of Broadcom by 18.3% during the third quarter. WealthPlan Investment Management LLC now owns 42,367 shares of the semiconductor manufacturer's stock valued at $14,879,000 after purchasing an additional 6,549 shares during the period. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors grew its holdings in shares of Broadcom by 9.5% in the third quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 9,880 shares of the semiconductor manufacturer's stock worth $3,470,000 after purchasing an additional 860 shares during the last quarter. Nvwm LLC grew its holdings in shares of Broadcom by 1.1% in the third quarter. Nvwm LLC now owns 21,979 shares of the semiconductor manufacturer's stock worth $7,694,000 after purchasing an additional 236 shares during the last quarter. Finally, Viking Fund Management LLC grew its holdings in shares of Broadcom by 7.8% in the third quarter. Viking Fund Management LLC now owns 118,000 shares of the semiconductor manufacturer's stock worth $41,440,000 after purchasing an additional 8,500 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI business remains a major growth driver. Reports highlight 221% growth in AI chip sales, strong demand for custom accelerators, and hyperscaler interest in alternatives to Nvidia’s higher-cost architecture. Some analysts believe Broadcom could benefit as AI spending broadens beyond Nvidia. Prediction: Broadcom Could Be the AI Winner After Nvidia
• Positive Sentiment: Bullish coverage points to Broadcom’s combination of high-margin semiconductors, networking products, custom silicon, and recurring infrastructure software revenue. Supporters argue that weaker non-AI segments are masking strong execution and creating a long-term buying opportunity. I’m Simply Not Worried About Broadcom’s Multi-Segment Drag
• Neutral Sentiment: Comparisons with Nvidia, Applied Materials, Marvell Technology, and SK Hynix emphasize Broadcom’s differentiated exposure to networking and custom AI chips, although SK Hynix recently showed stronger overall revenue momentum. These comparisons reinforce the investment debate rather than introduce a new company-specific catalyst. Broadcom vs. SK Hynix Revenue Trends
• Negative Sentiment: Tan cautioned that AI investing is becoming “casino”-like and that investors may underestimate how difficult it will be for AI companies to earn returns as spending and financing costs rise. He warned that tighter capital availability could slow AI infrastructure expansion. Broadcom CEO Hock Tan Warning About Casino-Like Investing
• Negative Sentiment: Investors are also examining potential off-balance-sheet financing and a reported $50 billion debt arrangement, increasing concern about leverage and counterparty risks if AI demand or customer returns weaken. Broadcom Off-Balance-Sheet Financing Risk
• Negative Sentiment: Apple’s reported cuts to iPhone 18 Pro component orders raise questions about Broadcom’s smartphone-related sales, while the continuing technology sell-off is weighing on high-valuation AI stocks broadly. Apple Cut iPhone 18 Orders

Broadcom Trading Down 0.6%

NASDAQ AVGO opened at $344.33 on Friday. The stock has a market cap of $1.64 trillion, a P/E ratio of 43.98 and a beta of 1.46. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The stock has a 50 day simple moving average of $366.31 and a two-hundred day simple moving average of $383.89. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

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

Broadcom Announces Dividend

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

Analyst Upgrades and Downgrades

Several research analysts recently commented on AVGO shares. BNP Paribas Exane lifted their target price on shares of Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. BMO Capital Markets increased their price target on shares of Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a research report on Thursday, September 3rd. Raymond James Financial reissued an "outperform" rating and issued a $475.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Lake Street Capital raised shares of Broadcom to a "buy" rating in a report on Thursday, September 3rd. Finally, UBS Group cut shares of Broadcom from a "buy" rating to a "hold" rating in a research 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 given a Hold rating to the company's stock. According to MarketBeat, Broadcom has an average rating of "Moderate Buy" and a consensus price target of $527.20.

About Broadcom

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.

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