Tarbox Family Office Inc. Invests $8.12 Million in Broadcom Inc. $AVGO

Key Points

• Tarbox Family Office initiated an $8.12 million Broadcom position, buying 21,494 shares in the second quarter. Broadcom now represents about 1.2% of its portfolio, while institutional investors and hedge funds collectively own 76.43% of the stock.
• Broadcom reported strong quarterly results, with revenue rising 85.5% year over year to $29.59 billion and adjusted EPS of $3.32, beating analyst expectations. The company also declared a quarterly dividend of $0.65 per share, implying a 0.7% annualized yield.
• The investment case is centered on accelerating AI custom-chip demand, with management projecting substantial AI semiconductor revenue growth. However, risks include hyperscalers developing their own accelerators, while analysts remain broadly bullish with a “Moderate Buy” consensus and an average price target of $509.04.

Tarbox Family Office Inc. bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 21,494 shares of the semiconductor manufacturer's stock, valued at approximately $8,119,000. Broadcom makes up about 1.2% of Tarbox Family Office Inc.'s portfolio, making the stock its 17th largest holding.

Other institutional investors have also recently bought and sold shares of the company. Geode Capital Management LLC grew its holdings in shares of Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after acquiring an additional 1,548,699 shares in the last quarter. Norges Bank acquired a new position in Broadcom in the fourth quarter worth approximately $24,252,196,000. Bank of America Corp DE raised its position in Broadcom by 4.6% during the second 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 acquiring an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP raised its position in Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after acquiring an additional 1,892,721 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Broadcom by 2.9% in the second 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 acquiring an additional 1,140,598 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip business is the central bullish catalyst. Management projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, as hyperscalers seek alternatives to standard GPUs to improve computing costs and efficiency. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: Commentators including Jim Cramer view AVGO as potentially “too cheap to ignore” following a decline of roughly 30% from its yearly peak. The argument is that strong AI growth, repeated earnings beats, and a lower share price create an attractive risk-reward setup for long-term investors. Jim Cramer on Broadcom
• Positive Sentiment: Broadcom’s CEO Hock Tan reportedly expressed strong confidence despite recent AI-related market fears. The company also benefits from continued semiconductor-sector strength and expectations that AI infrastructure investment will remain elevated. Broadcom CEO Hock Tan says he isn’t worried
• Neutral Sentiment: Investor attention is unusually high, with multiple reports highlighting AVGO as one of the most-watched stocks. These articles largely recap existing earnings and valuation themes rather than announce a new company-specific development. Broadcom is Attracting Investor Attention
• Negative Sentiment: Risks include hyperscalers developing their own AI accelerators, which could reduce reliance on outside suppliers. Meta, for example, could save billions by using internally designed chips. Broadcom’s VMware and enterprise-software growth story also has mixed industry evidence, making the AI forecast the more important driver for the stock. Meta Can Save $8.5 Billion by Using Its Own Chips

Broadcom Stock Up 3.0%

Shares of AVGO stock opened at $357.67 on Friday. The stock has a market cap of $1.71 trillion, a P/E ratio of 45.68 and a beta of 1.44. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The stock has a fifty day moving average price of $378.91 and a 200 day moving average price of $379.01. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued 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 business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the business earned $1.69 EPS. The firm's revenue was up 85.5% on a year-over-year basis. Analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is presently 33.21%.

Analyst Ratings Changes

Several research firms 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 research note on Thursday, June 4th. Cantor Fitzgerald increased their price objective on Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a report on Thursday, September 3rd. Citigroup reissued a "buy" rating and issued a $515.00 price target (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. DA Davidson set a $350.00 target price on shares of Broadcom and gave the stock a "neutral" rating in a report on Friday, September 4th. Finally, Rosenblatt Securities started coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $509.04.

Insider Buying and Selling

In other news, insider Mark Brazeal sold 25,000 shares of the firm'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 transaction of $10,033,250.00. Following the completion of the sale, the insider 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 53,492 shares of company stock worth $20,840,292 in the last 90 days. 1.90% of the stock is owned by company insiders.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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