Broadcom (NASDAQ:AVGO) Stock Falls 4.3% - Here's What Happened

Key Points

• Broadcom shares fell 4.3% to about $323.24 amid a broader semiconductor selloff, with technical concerns focused on whether the stock can hold support near $320.
• Despite the decline, analyst sentiment remains broadly positive: Tigress Financial initiated coverage with a Buy rating and a $600 target, while the consensus rating is “Moderate Buy” with an average price target of $529.17.
• Broadcom continues to benefit from strong AI-related demand and infrastructure-software growth, including its new Arcot Scam Defense product; its latest quarterly revenue rose 85.5% year over year to $29.59 billion, beating estimates.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 4.3% during mid-day trading on Thursday. The stock traded as low as $321.02 and last traded at $323.24. 27,631,662 shares traded hands during mid-day trading, an increase of 11% from the average daily volume of 24,926,646 shares. The stock had previously closed at $337.80.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent levels. Tigress Financial Broadcom coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for card-not-present transactions. Early pilot results and demand from financial institutions could strengthen its infrastructure-software business and diversify growth beyond semiconductors. Broadcom Arcot Scam Defense
• Positive Sentiment: Several investment articles remain bullish on Broadcom’s custom AI-chip, networking and infrastructure-software opportunities, arguing that accelerating AI revenue could allow AVGO to outperform the broader market through 2030. Broadcom long-term outlook
• Neutral Sentiment: Analyst commentary on AVGO was included in a broader upgrades-and-downgrades roundup, suggesting continued institutional attention but no clearly stated consensus change in the available report. Analyst upgrades and downgrades
• Negative Sentiment: Technical analysis warns that AVGO faces a critical test near $320 after the recent semiconductor selloff. Rate concerns and doubts about the sustainability of AI capital spending are weighing on chip valuations. Broadcom $320 support test
• Negative Sentiment: A comparison with Snowflake concludes that SNOW currently offers stronger enterprise-AI momentum, potentially diverting investor interest from Broadcom. Snowflake versus Broadcom

Wall Street Analyst Weigh In

A number of analysts have commented on AVGO shares. Tigress Financial began coverage on Broadcom in a report on Thursday. They issued a "buy" rating and a $600.00 target price for the company. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Broadcom in a research report on Thursday, September 3rd. The Goldman Sachs Group lifted their price objective on Broadcom from $525.00 to $540.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. KeyCorp reissued an "overweight" rating and issued a $575.00 target price on shares of Broadcom in a research report on Thursday, September 3rd. Finally, DA Davidson set a $350.00 target price on Broadcom and gave the stock a "neutral" rating in a research report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $529.17.

Broadcom Stock Performance

The firm has a market capitalization of $1.54 trillion, a PE ratio of 41.28 and a beta of 1.46. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The business's 50 day simple moving average is $357.48 and its two-hundred day simple moving average is $384.69.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating 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 for the quarter, compared to analysts' expectations of $29.24 billion. During the same period in the prior year, the firm earned $1.69 EPS. The company's revenue was up 85.5% compared to the same quarter last year. Research analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio is presently 33.21%.

Hedge Funds Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in the business. BIP Wealth LLC raised its stake in shares of Broadcom by 5.6% in the third quarter. BIP Wealth LLC now owns 13,354 shares of the semiconductor manufacturer's stock worth $4,690,000 after buying an additional 712 shares during the period. River Street Advisors LLC grew its stake in shares of Broadcom by 4.0% during the 3rd quarter. River Street Advisors LLC now owns 23,157 shares of the semiconductor manufacturer's stock valued at $8,132,000 after acquiring an additional 887 shares during the period. MLP3 LLC bought a new position in shares of Broadcom during the 3rd quarter valued at approximately $299,000. Private Wealth Partners LLC grew its stake in shares of Broadcom by 45.8% during the 3rd quarter. Private Wealth Partners LLC now owns 9,576 shares of the semiconductor manufacturer's stock valued at $3,363,000 after acquiring an additional 3,006 shares during the period. Finally, Boomfish Wealth Group LLC raised its stake in Broadcom by 15.8% during the 3rd quarter. Boomfish Wealth Group LLC now owns 13,285 shares of the semiconductor manufacturer's stock worth $4,665,000 after acquiring an additional 1,817 shares during the period. 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 data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company's semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.