Rakuten Investment Management Inc. Has $361.22 Million Holdings in Broadcom Inc. $AVGO

Key Points

• Rakuten Investment Management increased its Broadcom stake by 14.7% in the second quarter, ending with 969,839 shares valued at approximately $361.2 million. Broadcom represents about 1% of its portfolio and is its eighth-largest holding.
• Broadcom exceeded quarterly expectations, reporting $3.32 in EPS and $29.59 billion in revenue, with revenue up 85.5% year over year. The company also announced a quarterly dividend of $0.65 per share.
• Analysts maintain a broadly bullish view, with a “Moderate Buy” consensus and an average price target of $504.93, supported by strong AI-chip growth prospects. However, investors remain cautious about the stock’s premium valuation, supply constraints, margin pressure and customer concentration.

Rakuten Investment Management Inc. increased its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 14.7% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 969,839 shares of the semiconductor manufacturer's stock after acquiring an additional 123,941 shares during the quarter. Broadcom makes up about 1.0% of Rakuten Investment Management Inc.'s investment portfolio, making the stock its 8th largest position. Rakuten Investment Management Inc.'s holdings in Broadcom were worth $361,217,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Denver PWM LLC increased its position in Broadcom by 17.5% during the 2nd quarter. Denver PWM LLC now owns 1,611 shares of the semiconductor manufacturer's stock valued at $633,000 after purchasing an additional 240 shares during the period. Orion Capital Management LLC raised its holdings in shares of Broadcom by 16.8% in the 2nd quarter. Orion Capital Management LLC now owns 2,061 shares of the semiconductor manufacturer's stock valued at $779,000 after purchasing an additional 296 shares in the last quarter. Liontrust Investment Partners LLP lifted its position in shares of Broadcom by 3.7% in the 2nd quarter. Liontrust Investment Partners LLP now owns 642,254 shares of the semiconductor manufacturer's stock worth $242,611,000 after purchasing an additional 22,702 shares during the period. Glenview Trust Co purchased a new stake in shares of Broadcom in the 2nd quarter worth approximately $147,696,000. Finally, Concorde Asset Management LLC boosted its stake in shares of Broadcom by 5.5% during the second quarter. Concorde Asset Management LLC now owns 2,186 shares of the semiconductor manufacturer's stock valued at $826,000 after purchasing an additional 114 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Price Performance

Shares of Broadcom stock opened at $357.89 on Tuesday. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.70 trillion, a P/E ratio of 45.71 and a beta of 1.44. The firm's 50 day moving average price is $383.28 and its 200-day moving average price is $377.77. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating 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 company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period last year, the firm earned $1.69 earnings per share. Broadcom's revenue was up 85.5% compared to the same quarter last year. On average, sell-side analysts predict that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Insiders Place Their Bets

In other Broadcom news, Director Justine Page sold 1,602 shares of the firm'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 owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gayla Delly sold 1,890 shares of the business's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AVGO. Benchmark lifted their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Raymond James Financial restated an "outperform" rating and set a $475.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday. Oppenheimer reaffirmed an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Rosenblatt Securities began coverage on Broadcom in a report on Thursday, September 3rd. They issued a "buy" rating and a $600.00 price target on the stock. Finally, Susquehanna reissued a "positive" rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Thirty investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $504.93.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom raised its fiscal 2027 AI-semiconductor revenue forecast to approximately $115 billion, up from more than $100 billion previously, and reportedly sees potential for about $230 billion in fiscal 2028. The outlook reflects sustained spending by hyperscalers on custom accelerators and AI infrastructure. Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Just Nvidia GPUs
• Positive Sentiment: AI semiconductor revenue reportedly jumped 221% to $16.7 billion in the latest quarter. Broadcom is benefiting as large technology companies seek alternatives or complements to Nvidia GPUs, particularly for inference workloads, custom silicon and high-speed data-center networking. Broadcom Inc. Stock: Rises as Custom AI Silicon Fuels Massive Growth Outlook
• Positive Sentiment: Analysts and financial commentators increasingly characterize Broadcom as a major beneficiary of the expansion of customized AI infrastructure, alongside its strong free-cash-flow generation and AI networking exposure. The company’s custom-chip strategy could also pressure competitors such as AMD in hyperscaler accounts. Broadcom stock: Why the AI chipmaker’s growth story is gaining steam
• Neutral Sentiment: High-volume purchases of Broadcom call options indicate speculative bullish interest, but options activity does not guarantee sustained buying in the shares. Stock Traders Purchase High Volume of Broadcom Call Options
• Negative Sentiment: Investors remain concerned about Broadcom’s premium valuation, possible margin pressure, supply constraints and dependence on a limited number of large customers. These risks help explain why the stock has declined over the past three months despite its strong AI growth outlook. Broadcom Drops 10% in 3 Months: Buy, Sell or Hold the Stock?

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.

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