Broadcom (NASDAQ:AVGO) Stock Price Down 2% - Here's What Happened

Key Points

• Broadcom shares fell 2% to about $325.60, below the prior close of $332.13, on trading volume slightly below its average.
• AI demand remains a bright spot: semiconductor revenue reached $16.7 billion, beating management’s $16 billion target, with further growth expected next quarter. ETFs also bought $267.7 million of AVGO shares on Nov. 2.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $530.52, though some commentary warns that the stock’s valuation is high and custom-chip growth depends on customers’ continued investment.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares were down 2% on Wednesday. The company traded as low as $321.74 and last traded at $325.6030. Approximately 23,697,841 shares were traded during mid-day trading, a decline of 4% from the average session volume of 24,768,152 shares. The stock had previously closed at $332.13.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue reached $16.7 billion, above its $16 billion target, and management expects further growth next quarter—evidence that demand remains robust despite competition. Is Broadcom Stock a Buy Now?
• Positive Sentiment: ETFs purchased $267.7 million of AVGO shares on Nov. 2, a supportive signal of institutional fund flows. 53 ETFs Add to Broadcom Holdings
• Positive Sentiment: Several reports point to substantial AI growth potential, including claims that Anthropic and OpenAI could become Broadcom’s two largest customers. One Wall Street Analyst Says This Stock Is the Best Way to Invest in Anthropic and OpenAI
• Negative Sentiment: Valuation remains a potential headwind: some commentary argues the shares may be expensive, while Broadcom’s custom-chip opportunity depends on customers continuing to invest in their own processors. Broadcom: Great Company, Not A Great Price Taiwan Semi or Broadcom

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on AVGO shares. Oppenheimer started coverage on shares of Broadcom in a research note on Tuesday, October 27th. They set a "buy" rating on the stock. BNP Paribas Exane upped their price target on Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a report on Friday, September 4th. DA Davidson upgraded Broadcom from a "neutral" rating to a "buy" rating and increased their price target for the stock from $350.00 to $400.00 in a research report on Tuesday, October 27th. Rosenblatt Securities reissued a "buy" rating and issued a $600.00 price objective on shares of Broadcom in a report on Tuesday, October 27th. Finally, Sanford C. Bernstein restated a "buy" rating on shares of Broadcom in a research report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $530.52.

Broadcom Trading Down 2.0%

The firm has a market cap of $1.55 trillion, a price-to-earnings ratio of 41.58 and a beta of 1.49. The company's 50-day moving average price is $351.35 and its 200-day moving average price is $366.76. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

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, 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 firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the prior year, the firm earned $1.69 EPS. The company's revenue for the quarter was up 85.5% on a year-over-year basis. Equities analysts expect that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Gryphon Financial Partners LLC grew its position in Broadcom by 0.4% in the 3rd quarter. Gryphon Financial Partners LLC now owns 28,035 shares of the semiconductor manufacturer's stock valued at $9,846,000 after buying an additional 100 shares in the last quarter. Fairscale Capital LLC lifted its stake in shares of Broadcom by 2.9% in the 3rd quarter. Fairscale Capital LLC now owns 5,687 shares of the semiconductor manufacturer's stock worth $1,854,000 after acquiring an additional 160 shares during the period. M&G PLC boosted its holdings in shares of Broadcom by 12.8% in the third quarter. M&G PLC now owns 1,812,692 shares of the semiconductor manufacturer's stock valued at $636,255,000 after acquiring an additional 206,349 shares in the last quarter. Vestor Capital LLC boosted its holdings in shares of Broadcom by 10,295.8% in the third quarter. Vestor Capital LLC now owns 57,177 shares of the semiconductor manufacturer's stock valued at $20,080,000 after acquiring an additional 56,627 shares in the last quarter. Finally, Kestra Investment Management LLC increased its stake in shares of Broadcom by 11.4% during the third quarter. Kestra Investment Management LLC now owns 27,974 shares of the semiconductor manufacturer's stock valued at $9,824,000 after acquiring an additional 2,857 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.

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