Sanders Morris Harris LLC Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Sanders Morris Harris LLC purchased 25,969 Broadcom shares worth approximately $9.1 million in the third quarter, making AVGO about 1.2% of its portfolio. Institutional investors collectively own 76.43% of the stock.
• Wall Street remains broadly bullish, with 37 Buy ratings, one Strong Buy, and three Holds; the consensus rating is Moderate Buy with a $527.20 price target.
• Broadcom reported strong quarterly results, including 85.5% year-over-year revenue growth and EPS above estimates, while its AI accelerator and networking businesses support growth. However, shares remain below key moving averages, and investors continue to weigh valuation, potential leverage, and the risk of slower AI-related spending.

Sanders Morris Harris LLC purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 25,969 shares of the semiconductor manufacturer's stock, valued at approximately $9,129,000. Broadcom comprises about 1.2% of Sanders Morris Harris LLC's investment portfolio, making the stock its 21st biggest position.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Fairfield Financial Advisors LTD boosted its holdings in shares of Broadcom by 29.2% during the third quarter. Fairfield Financial Advisors LTD now owns 6,254 shares of the semiconductor manufacturer's stock worth $2,196,000 after acquiring an additional 1,413 shares during the period. Consilium Wealth Advisory LLC grew its position in shares of Broadcom by 2.0% in the third quarter. Consilium Wealth Advisory LLC now owns 12,967 shares of the semiconductor manufacturer's stock valued at $4,554,000 after purchasing an additional 254 shares during the last quarter. Lodestone Wealth Management LLC increased its stake in shares of Broadcom by 6.2% during the third quarter. Lodestone Wealth Management LLC now owns 3,513 shares of the semiconductor manufacturer's stock worth $1,206,000 after purchasing an additional 204 shares during the period. N10 Wealth LLC increased its stake in shares of Broadcom by 29.1% during the third quarter. N10 Wealth LLC now owns 27,546 shares of the semiconductor manufacturer's stock worth $9,674,000 after purchasing an additional 6,202 shares during the period. Finally, ABLE Financial Group LLC increased its stake in shares of Broadcom by 11.6% during the third quarter. ABLE Financial Group LLC now owns 12,316 shares of the semiconductor manufacturer's stock worth $4,325,000 after purchasing an additional 1,285 shares during the period. 76.43% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on AVGO shares. Morgan Stanley restated an "overweight" rating and issued a $505.00 price target (up from $502.00) on shares of Broadcom in a research note on Thursday, September 3rd. Rosenblatt Securities initiated coverage on Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 price objective on the stock. Weiss Ratings upgraded Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Raymond James Financial reissued an "outperform" rating and set a $475.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Finally, Citigroup reissued a "buy" rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $527.20.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom AI accelerator business remains a major growth driver. The company is reportedly booking orders well into 2028 as large technology customers shift toward internally designed chips, potentially benefiting Broadcom as AI spending expands beyond Nvidia. One Stock Could Benefit as AI Spending Moves Beyond Nvidia
• Positive Sentiment: Analysts continue to raise expectations: Erste Group lifted its fiscal 2027 EPS forecast to $17.59 from $17.54, while other coverage highlights Broadcom’s strong free cash flow, high-margin semiconductor and infrastructure-software businesses, and substantial AI-chip revenue.
• Positive Sentiment: Broadcom is preparing to launch an AI networking platform at the OCP Global Summit, supporting the view that its opportunity extends beyond accelerators into the networking infrastructure needed for AI data centers. Broadcom To Launch AI Networking Platform
• Positive Sentiment: The introduction of VMware HyperArmor adds a new security product for VMware Cloud Foundation and could strengthen Broadcom’s infrastructure-software portfolio. Broadcom Introduces VMware HyperArmor
• Neutral Sentiment: Several analyses describe a disconnect between Broadcom’s rapidly growing revenue and weaker stock performance. The company is viewed as a potentially steadier long-term AI investment than more concentrated semiconductor peers, but investors remain divided over whether current growth is sufficiently reflected in its valuation.
• Negative Sentiment: CEO Hock Tan warned that AI investment has a “casino” element and faces a capital hurdle. Those comments have heightened concerns that data-center customers could eventually slow spending or struggle to earn adequate returns, even as Broadcom raises AI expectations.
• Negative Sentiment: Reports discussing a possible $50 billion debt deal have raised questions about leverage and financing risk. Meanwhile, AVGO remains well below its 52-week high and below its 50-day and 200-day moving averages, indicating continuing technical pressure and investor profit-taking.

Broadcom Stock Down 3.1%

NASDAQ AVGO opened at $346.25 on Thursday. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.65 trillion, a price-to-earnings ratio of 44.22 and a beta of 1.46. The company has a 50 day moving average of $367.83 and a 200-day moving average of $383.58. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (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 business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the prior year, the business posted $1.69 earnings per share. The firm's quarterly revenue was up 85.5% compared to the same quarter last year. On average, equities research analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal 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 issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is 33.21%.

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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