Broadcom (NASDAQ:AVGO) Stock Jumps 1.6% - Should You Buy?

Key Points

• Broadcom shares rose 1.6% to $355.10, although trading volume was 25% below the average session level.
• Analysts maintain a favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $527.20, implying substantial upside. Recent results also exceeded expectations, with revenue up 85.5% year over year and EPS topping estimates.
• Broadcom offers AI-infrastructure growth and a long record of dividend increases, but investors should weigh its elevated valuation, recent insider selling and underperformance versus custom-AI chip peer Marvell.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) traded up 1.6% on Tuesday. The company traded as high as $361.86 and last traded at $355.10. 18,774,598 shares were traded during mid-day trading, a decline of 25% from the average session volume of 25,176,006 shares. The stock had previously closed at $349.57.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts cited an average price target of $527.20, implying substantial upside from Broadcom’s recent trading level and reinforcing favorable sentiment toward the stock. Broadcom Inc. Stock Has Average Target Price of $527.20
• Positive Sentiment: Broadcom’s dividend has increased for 15 consecutive years, including a 10% raise in December 2025. Free cash flow generated through the first three quarters of fiscal 2026 has already exceeded all of fiscal 2025, supporting expectations for another potential increase later this year. Broadcom's Dividend Has Grown About 90-Fold Since 2010
• Positive Sentiment: Broadcom is viewed as a potential bargain within the semiconductor sector despite its exposure to the high-growth AI infrastructure market. This combination of perceived value and AI growth may be attracting buyers. This Semiconductor Stock Is a Bargain
• Neutral Sentiment: Broadcom is receiving elevated investor attention, but the Zacks article primarily reviews factors affecting its outlook rather than announcing a new material catalyst. Broadcom Is Attracting Investor Attention
• Negative Sentiment: Comparisons with Marvell show Broadcom’s shares have significantly lagged the custom-AI chip peer this year. While this may indicate room to catch up, it also underscores investor concerns about valuation, growth expectations and competitive positioning. Marvell vs. Broadcom: Which Custom AI Chip Stock Has More Room to Run?

Analyst Ratings Changes

Several equities research analysts have recently weighed in on AVGO shares. Raymond James Financial reissued an "outperform" rating and issued a $475.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. Citigroup reaffirmed a "buy" rating and issued a $515.00 price objective (up from $500.00) on shares of Broadcom in a research note on Friday, September 4th. Piper Sandler initiated coverage on Broadcom in a report on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 target price on the stock. Benchmark raised their price target on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Finally, Rosenblatt Securities assumed coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued a "buy" rating and a $600.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $527.20.

Broadcom Stock Performance

The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a 50 day simple moving average of $375.79 and a 200-day simple moving average of $380.50. The stock has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 45.35 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data 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 net margin of 42.94% and a return on equity of 48.33%. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the firm posted $1.69 EPS. The company's quarterly revenue was up 85.5% on a year-over-year basis. As a group, equities research analysts expect that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a dividend of $0.65 per share. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio is currently 33.21%.

Insider Transactions at Broadcom

In other news, Director Gayla Delly sold 1,890 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the business'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 of the company's stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 51,890 shares of company stock worth $20,241,368 in the last three months. Insiders own 1.90% of the company's stock.

Institutional Trading of Broadcom

Several hedge funds have recently bought and sold shares of the business. State Street Corp lifted its stake in shares of Broadcom by 8.7% during the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock worth $75,367,711,000 after purchasing an additional 16,651,378 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after buying an additional 1,548,699 shares during the period. Norges Bank acquired a new position in Broadcom during the 4th quarter worth approximately $24,252,196,000. Bank of America Corp DE lifted its position in Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock worth $23,202,543,000 after acquiring an additional 2,685,916 shares in the last quarter. Finally, Wellington Management Group LLP boosted its holdings in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after acquiring an additional 1,892,721 shares during the period. Institutional investors and hedge funds 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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