Broadcom (NASDAQ:AVGO) Stock Sees Heavy Call Option Buying

Key Points

• Broadcom saw unusually heavy call-option activity on Tuesday, with 426,038 call contracts traded—34% above its typical daily volume.
• Investor sentiment remains broadly positive, supported by strong AI-related growth, including a reported 221% year-over-year increase in AI semiconductor revenue and potential future demand from hyperscalers and Anthropic.
• Broadcom shares rose 4.5% to $378.95, while analysts maintained a consensus “Moderate Buy” rating and an average price target of $527.20.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) saw some unusual options trading activity on Tuesday. Stock investors bought 426,038 call options on the stock. This represents an increase of 34% compared to the typical daily volume of 317,494 call options.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Marvell Technology’s investor-day emphasis on custom AI silicon reinforced the growth opportunity for Broadcom, a major supplier and design partner to hyperscale cloud companies. The report said Broadcom advanced alongside Marvell as investors assessed rising demand for customer-specific AI accelerators. Marvell Rallies 6% as Investor Day Presses the Custom AI Silicon Case; Broadcom Advances 4%
• Positive Sentiment: Recent coverage highlights Broadcom’s AI semiconductor revenue growth of 221% year over year in fiscal third-quarter 2026 and management’s $21.7 billion fiscal-fourth-quarter forecast, supporting the bullish case that AI demand could continue expanding rapidly. Broadcom Trades Above Its Own Average Multiple While Growth Cools
• Positive Sentiment: Morgan Stanley said Nvidia and Broadcom may be relatively insulated from a projected U.S. data-center power shortfall because their products are likely to remain priorities in constrained AI infrastructure deployments. Nvidia, Broadcom May Be Surprisingly Safe From a 32-GW Hole in the AI Boom
• Positive Sentiment: A reported $42 billion financing arrangement involving Anthropic is viewed by bullish investors as a potential source of future spending on Broadcom’s custom AI chips and networking products. Broadcom Stock Jumps Following Reported $42 Billion Financing Deal With Anthropic

Analysts Set New Price Targets

A number of research firms have weighed in on AVGO. HSBC reduced their target price on Broadcom from $600.00 to $560.00 and set a "buy" rating on the stock in a research note on Thursday, September 3rd. Morgan Stanley reaffirmed an "overweight" rating and issued a $505.00 price target (up from $502.00) on shares of Broadcom in a research note on Thursday, September 3rd. Sanford C. Bernstein reiterated a "buy" rating on shares of Broadcom in a report on Monday, September 21st. Fox Advisors raised shares of Broadcom to an "outperform" rating in a research report on Thursday, September 3rd. Finally, TD Cowen restated a "buy" rating and issued a $475.00 target price (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $527.20.

Broadcom Stock Up 4.5%

Broadcom stock traded up $16.44 during mid-day trading on Tuesday, reaching $378.95. 20,037,838 shares of the company were exchanged, compared to its average volume of 25,095,428. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The firm has a market cap of $1.81 trillion, a P/E ratio of 48.44 and a beta of 1.46. The business has a fifty day moving average of $372.33 and a 200 day moving average of $381.36. Broadcom has a 12-month low of $289.96 and a 12-month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the company posted $1.69 EPS. The business's revenue for the quarter was up 85.5% compared to the same quarter last year. Research analysts anticipate that Broadcom will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued 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 was Monday, September 21st. Broadcom's dividend payout ratio (DPR) is currently 33.21%.

Insider Transactions at Broadcom

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark 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 transaction, the insider owned 194,989 shares of the company's stock, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 51,890 shares of company stock worth $20,241,368 over the last three months. 1.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cornerstone Advisors LLC acquired a new position in Broadcom in the 2nd quarter valued at about $92,522,000. Bank of America Corp DE raised its stake in shares of Broadcom by 1.5% during the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock worth $18,179,719,000 after purchasing an additional 894,564 shares during the last quarter. Clear Harbor Asset Management LLC acquired a new stake in shares of Broadcom during the second quarter worth $3,302,000. Bartlett & CO. Wealth Management LLC lifted its holdings in shares of Broadcom by 129.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after purchasing an additional 62,050 shares during the period. Finally, Violich Capital Management Inc. grew its position in Broadcom by 26.1% in the 3rd quarter. Violich Capital Management Inc. now owns 21,791 shares of the semiconductor manufacturer's stock valued at $7,653,000 after buying an additional 4,511 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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