William Blair Investment Management LLC Makes New $776.71 Million Investment in Broadcom Inc. $AVGO

Key Points

• William Blair Investment Management acquired 2.06 million Broadcom shares worth approximately $776.7 million, making AVGO its fifth-largest holding and representing about 2.3% of its portfolio. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom exceeded quarterly expectations with EPS of $2.44 and revenue of $22.19 billion, while revenue increased 47.9% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $491.97.
• Despite strong AI and infrastructure-software prospects, Broadcom faces elevated expectations and valuation concerns, trading near 62 times earnings. Rising bond yields, competitive pressures and recent insider selling are additional risks for investors.

William Blair Investment Management LLC purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 2,056,135 shares of the semiconductor manufacturer's stock, valued at approximately $776,705,000. Broadcom makes up about 2.3% of William Blair Investment Management LLC's holdings, making the stock its 5th biggest position.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Cornerstone Advisors LLC bought a new stake in Broadcom in the 2nd quarter valued at approximately $92,522,000. Bank of America Corp DE boosted its position in Broadcom by 1.5% during the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock worth $18,179,719,000 after acquiring an additional 894,564 shares during the last quarter. Bartlett & CO. Wealth Management LLC grew its stake in shares of Broadcom by 129.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after acquiring an additional 62,050 shares in the last quarter. First Bank & Trust raised its holdings in shares of Broadcom by 17.2% in the second quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock valued at $3,968,000 after purchasing an additional 1,545 shares during the last quarter. Finally, Fifth Lane Capital LP raised its holdings in shares of Broadcom by 77.8% in the fourth quarter. Fifth Lane Capital LP now owns 4,000 shares of the semiconductor manufacturer's stock valued at $1,384,000 after purchasing an additional 1,750 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Price Performance

Shares of AVGO opened at $369.68 on Wednesday. The company has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.61, a PEG ratio of 0.71 and a beta of 1.44. Broadcom Inc. has a 1-year low of $287.17 and a 1-year high of $495.00. The company's fifty day simple moving average is $384.43 and its 200 day simple moving average is $376.88. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

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

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Evercore restated an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a research note on Tuesday, May 19th. KeyCorp restated an "overweight" rating and issued a $575.00 price objective (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, JPMorgan Chase & Co. lifted their target price on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $491.97.

Insider Activity

In related news, insider Mark David Brazeal sold 25,000 shares of the firm's stock in a transaction dated 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 directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director directly owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 over the last quarter. 1.90% of the stock is currently owned by company insiders.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled VMware Private AI Cloud, including VMware AI Factory, AI-ready data foundations and support for more than 150 commercial and open-source models. The platform is designed to reduce AI infrastructure deployment from weeks to hours, improve GPU utilization and give enterprises greater control over AI costs. Broadcom launches private AI cloud tools
• Positive Sentiment: New VMware capabilities—AgentMinder, vDefend and Avi Load Balancer—target security, identity, governance and observability for autonomous AI agents. The launches could strengthen Broadcom’s position in enterprise hybrid-cloud and private-AI deployments while creating additional infrastructure-software opportunities. Broadcom agentic AI security announcement
• Positive Sentiment: Broadcom also launched TrueSource, a commercially supported portfolio of verified open-source software covering Spring, Java, Python, Node.js, PostgreSQL, MySQL and other data engines. The offering may expand recurring software revenue and address growing enterprise demand for secure software supply chains. Broadcom TrueSource announcement
• Neutral Sentiment: Analysts expect another sharp increase in quarterly results, with consensus estimates cited near $29.4 billion in revenue and $3.24 in EPS. Investors will focus on AI-chip demand, hyperscaler custom-ASIC growth, VMware execution, margins and forward guidance when AVGO reports after the market closes on September 2. Broadcom Q3 earnings preview
• Neutral Sentiment: Optimistic coverage points to a median analyst price target of $525 and potential upside from backlog strength, while technical commentary identifies the current area as important support. However, the stock’s reaction may depend more on results and guidance than on existing bullish targets. Broadcom Wall Street outlook
• Negative Sentiment: Semiconductor shares broadly weakened as a global bond selloff pushed long-term yields higher, pressuring high-multiple technology stocks. Broadcom also faces elevated expectations, a valuation near 62 times earnings, margin concerns and competitive pressure from Nvidia, Nutanix and Microsoft. Reported insider activity is heavily weighted toward sales, adding another cautionary signal. Semiconductor stocks and rising yields

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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