Viking Fund Management LLC Trims Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Viking Fund Management cut its stake in Broadcom by 6.3%, selling 6,000 shares to hold 89,000 shares worth roughly $30.8 million, with Broadcom remaining its largest position at 3.6% of the fund.
• Positive catalysts include a multiyear partnership with OpenAI to co-develop custom AI accelerators and multiple analyst upgrades that raise EPS and price targets, supporting a sizable AI-driven revenue upside for AVGO.
• Offsetting risks: insiders have sold heavily (403,049 shares worth ~$133.5M over 90 days), and the stock has experienced a ~24% pullback, which could amplify near-term downside despite a $0.65 quarterly dividend (0.9% yield).

Viking Fund Management LLC lessened its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.3% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 89,000 shares of the semiconductor manufacturer's stock after selling 6,000 shares during the period. Broadcom accounts for 3.6% of Viking Fund Management LLC's holdings, making the stock its biggest holding. Viking Fund Management LLC's holdings in Broadcom were worth $30,803,000 at the end of the most recent reporting period.

A number of other institutional investors have also bought and sold shares of the company. Norges Bank bought a new position in shares of Broadcom in the 2nd quarter worth about $18,579,549,000. Edgewood Management LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at about $1,571,438,000. Arrowstreet Capital Limited Partnership grew its stake in Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after purchasing an additional 4,694,313 shares during the period. Nordea Investment Management AB grew its stake in Broadcom by 47.5% during the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock worth $3,406,211,000 after purchasing an additional 3,160,586 shares during the period. Finally, Danske Bank A S bought a new stake in Broadcom in the third quarter worth approximately $987,488,000. Institutional investors own 76.43% of the company's stock.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: OpenAI partnership: Broadcom struck a multiyear deal to co-develop custom AI accelerators, positioning AVGO as a strategic supplier for OpenAI and signaling material addressable revenue from bespoke AI silicon and related infrastructure. OpenAI Just Became Broadcom's Newest Chip Customer
• Positive Sentiment: Analyst upgrades: Erste Group sharply raised estimates (FY2026 to ~$9.80 EPS and FY2027 to ~$16.55 EPS), implying much stronger earnings power than consensus and supporting a higher valuation if AI wins scale as expected.
• Positive Sentiment: Thesis reinforcement from market commentary: Multiple bullish write-ups highlight Broadcom’s expanding role across custom AI silicon, networking and software for hyperscalers — a structural growth story that investors view as durable despite recent volatility. Broadcom (AVGO) Powers the AI Boom — Bullish despite the Pullback
• Neutral Sentiment: Price-target / multi‑year outlook pieces: Analysts and retail sites are publishing 3‑year AVGO price predictions and scenario analyses reflecting both upside from AI exposure and risk from lofty multiples. Broadcom Stock Price Prediction: Where Will AVGO Be in 3 Years?
• Neutral Sentiment: Buy-the-dip narratives: Several outlets argue the ~24% pullback is a buying opportunity tied to the OpenAI deal and secular AI demand, but these are thesis-driven and hinge on execution. Is the 24% Dip a Golden Buying Opportunity?
• Neutral Sentiment: Macro/sector context: Coverage noting that tech earnings have grown but some ETFs (and segments) lag share-price recovery, which can keep trading volatile for large-cap semiconductors like AVGO. As Tech Earnings Grow, This ETF Still Hasn't Caught Up (AVGO)
• Negative Sentiment: Insider selling: Reports of insiders selling shares have raised near‑term sentiment concerns and may amplify downside during a broader pullback, even if strategic fundamentals remain intact. Broadcom Insiders Are Selling Stock. Is AVGO Finally at the End of the Road?

Broadcom Price Performance

AVGO stock opened at $300.68 on Friday. The company has a market capitalization of $1.42 trillion, a P/E ratio of 58.73, a price-to-earnings-growth ratio of 0.66 and a beta of 1.22. Broadcom Inc. has a 52-week low of $138.10 and a 52-week high of $414.61. The business has a 50-day simple moving average of $327.00 and a two-hundred day simple moving average of $344.86. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter last year, the company earned $1.60 earnings per share. The company's revenue for the quarter was up 29.5% on a year-over-year basis. Research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.9%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Insider Activity

In related news, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the transaction, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the sale, the insider owned 74,626 shares of the company's stock, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 403,049 shares of company stock worth $133,459,315. Company insiders own 1.90% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. KeyCorp restated an "overweight" rating and set a $500.00 price target (up from $460.00) on shares of Broadcom in a report on Friday, December 12th. Royal Bank Of Canada lowered their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. Oppenheimer boosted their target price on shares of Broadcom from $435.00 to $450.00 and gave the company an "outperform" rating in a research report on Friday, December 12th. Morgan Stanley increased their target price on shares of Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a research note on Friday, March 6th. Finally, Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $435.30.

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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