Mizuho Issues Positive Forecast for Broadcom (NASDAQ:AVGO) Stock Price

Key Points

• Mizuho raised its price target on Broadcom from $480 to $530 and kept an “outperform” rating, implying about 25% upside from the current price.
• Broadcom shares fell 11.6% to $423.88 despite the upbeat analyst call, showing the stock was under pressure even as Wall Street remained largely bullish.
• The company recently beat earnings and revenue estimates, posting $2.44 EPS on $22.19 billion in revenue, while several other analysts also lifted their price targets after the strong report.

Broadcom (NASDAQ:AVGO - Get Free Report) had its price target hoisted by analysts at Mizuho from $480.00 to $530.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the semiconductor manufacturer's stock. Mizuho's price target indicates a potential upside of 25.04% from the stock's current price.

Several other research analysts have also issued reports on the company. Cantor Fitzgerald reissued an "overweight" rating and issued a $525.00 target price on shares of Broadcom in a research report on Thursday. The Goldman Sachs Group reissued a "buy" rating and issued a $525.00 target price on shares of Broadcom in a research report on Thursday. KeyCorp reaffirmed an "overweight" rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research report on Thursday. UBS Group set a $485.00 price objective on Broadcom in a research report on Thursday. Finally, Susquehanna reaffirmed a "positive" rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and a consensus price target of $490.13.

Broadcom Stock Down 11.6%

Shares of NASDAQ:AVGO traded down $55.35 during trading on Thursday, hitting $423.88. The stock had a trading volume of 58,054,140 shares, compared to its average volume of 25,086,932. Broadcom has a 12 month low of $241.11 and a 12 month high of $495.00. The company has a market capitalization of $2.01 trillion, a PE ratio of 83.05, a PEG ratio of 0.99 and a beta of 1.41. The firm's fifty day moving average is $392.87 and its 200 day moving average is $361.19. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the prior year, the company earned $1.58 EPS. The business's revenue was up 47.9% compared to the same quarter last year. Analysts anticipate that Broadcom will post 9.91 EPS for the current fiscal year.

Insiders Place Their Bets

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares of the company's stock, valued at approximately $271,759,532.32. This trade represents a 1.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the business. ROSS JOHNSON & Associates LLC increased its holdings in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC increased its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares in the last quarter. SWAN Capital LLC increased its holdings in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter worth $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom in the 4th quarter worth $33,000. Institutional investors own 76.43% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom beat fiscal Q2 earnings estimates and posted record revenue of $22.2 billion, with AI semiconductor revenue jumping sharply year over year, underscoring continued demand for its custom AI chips and networking products.
• Positive Sentiment: The company issued a strong fiscal Q3 revenue guide of about $29.4 billion, above Wall Street expectations, suggesting the core business and AI demand remain healthy.
• Positive Sentiment: Several analysts raised price targets after the report, including JPMorgan, Deutsche Bank, Benchmark, Truist, and others, signaling continued long-term confidence in Broadcom’s AI infrastructure opportunity.
• Neutral Sentiment: Broadcom also declared a quarterly dividend of $0.65 per share, reinforcing its shareholder-return profile but not likely to drive near-term trading.
• Negative Sentiment: Despite the beat, the stock sold off because AI guidance came in below the market’s most aggressive forecasts, leading investors to worry that expectations for Broadcom’s AI ramp had become too stretched.
• Negative Sentiment: The weaker reaction has also dragged down other semiconductor names, as traders reassess whether the AI spending boom is entering a more “rational” phase.

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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