Tortoise Investment Management LLC Acquires New Holdings in Broadcom Inc. $AVGO

Key Points

• Tortoise Investment Management initiated a Broadcom position by purchasing 2,363 shares worth approximately $893,000. Institutional investors collectively own 76.43% of the company.
• AI infrastructure remains Broadcom’s primary growth catalyst, supported by custom AI-chip and networking demand, an OpenAI chip partnership, and expanding VMware private-cloud distribution through Kyndryl.
• Broadcom reported 47.9% year-over-year revenue growth in its latest quarter and exceeded earnings expectations, but its elevated valuation, customer concentration, debt-funded AI investment, and recent insider selling remain key risks.

Tortoise Investment Management LLC bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 2,363 shares of the semiconductor manufacturer's stock, valued at approximately $893,000.

Other hedge funds have also recently made changes to their positions in the company. Norges Bank bought a new stake in Broadcom during the fourth quarter valued at $24,252,196,000. Bank of New York Mellon Corp bought a new position in Broadcom in the 2nd quarter worth about $10,528,191,000. Deutsche Bank AG purchased a new stake in shares of Broadcom in the 2nd quarter valued at about $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Broadcom during the 2nd quarter valued at about $4,457,583,000. Finally, Cardano Risk Management B.V. grew its holdings in shares of Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock worth $4,391,940,000 after purchasing an additional 11,414,701 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: OpenAI chip partnership highlights custom-AI opportunity. Broadcom reportedly handled the physical implementation and supplied key technology for OpenAI’s “Jalapeño” inference chip, which OpenAI says can deliver up to 1.9 times more AI work per watt than comparison systems. The project reinforces Broadcom’s role as a leading provider of custom AI silicon and networking infrastructure. OpenAI Built an Nvidia-Beating Inference Chip in Nine Months
• Positive Sentiment: AI semiconductor momentum remains the key growth driver. Analysts point to accelerating demand for Broadcom’s custom XPUs, networking products, and AI data-center infrastructure, although NVIDIA and AMD are increasing competition. Broadcom Rides AI Semiconductor Growth
• Positive Sentiment: Kyndryl alliance supports VMware and private-cloud growth. The partnership expands Broadcom’s VMware Cloud Foundation reach among global enterprises, potentially strengthening recurring software revenue and demand for secure private-cloud modernization. New Kyndryl Partnership Strengthens Private Cloud and AI Growth Strategy
• Positive Sentiment: Brokerage support and institutional buying add confidence. BMO initiated coverage with an Outperform rating and a $455 target, while ARK Investment Management purchased 57,705 AVGO shares across three funds. BMO Starts Broadcom at Outperform With $455 Target
• Neutral Sentiment: NVIDIA’s earnings lifted the broader chip sector. Broadcom traded higher alongside semiconductor stocks, while investors also looked ahead to Broadcom’s next earnings report for evidence that AI demand is translating into sustained revenue and cash-flow growth. Broadcom Stock Making Moves Ahead of Earnings
• Neutral Sentiment: RBC reaffirmed a Sector Perform rating but set a $400 price target, implying moderate upside while signaling that much of the AI optimism may already be reflected in the shares.
• Negative Sentiment: Valuation and AI financing risks remain concerns. After a roughly sevenfold five-year gain, some analysis argues that Broadcom’s valuation depends heavily on continued AI growth. Debt-funded infrastructure spending and reliance on a limited group of major customers could increase downside risk if customer plans or AI investment slow. Broadcom Stock May Trade at a Discount After AI Debt Concerns

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director directly owned 31,326 shares of the company's stock, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 sale, the insider owned 194,989 shares of the company's stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

Broadcom Price Performance

Shares of Broadcom stock opened at $371.54 on Friday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. Broadcom Inc. has a 52-week low of $287.17 and a 52-week high of $495.00. The company has a fifty day moving average of $385.92 and a 200-day moving average of $376.31. The stock has a market capitalization of $1.77 trillion, a price-to-earnings ratio of 61.92, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm's revenue was up 47.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.58 EPS. Equities research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The business 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 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's payout ratio is 43.33%.

Analyst Ratings Changes

AVGO has been the subject of several research analyst reports. Royal Bank Of Canada reiterated a "sector perform" rating and set a $400.00 target price on shares of Broadcom in a research report on Wednesday. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $525.00 price objective on shares of Broadcom in a report on Thursday, June 4th. Erste Group Bank reissued a "hold" rating on shares of Broadcom in a research note on Tuesday, July 7th. Finally, Mizuho raised their price target on Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a research report on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $491.97.

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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