Broadcom (NASDAQ:AVGO) Stock Price Up 4% - What's Next?

Key Points

• Broadcom shares rose 4% to $345.22 in midday trading, with volume about 29% above its average.
• In its latest reported quarter, Broadcom beat earnings and revenue estimates, while revenue climbed 85.5% year over year to $29.59 billion.
• Analysts hold a consensus “Moderate Buy” rating and an average $530.52 price target; coverage highlights AI-chip growth potential alongside concerns about valuation and exposure to an AI slowdown.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) were up 4% on Wednesday. The stock traded as high as $356.85 and last traded at $345.22. 32,295,740 shares were traded during mid-day trading, an increase of 29% from the average daily volume of 25,079,223 shares. The stock had previously closed at $331.98.

Trending Headlines about Broadcom

Investors following AVGO have been watching these headlines:

• Positive Sentiment: JPMorgan says Google’s latest TPU generation reinforces Broadcom’s central role in the company’s custom AI-chip program, supporting the growth outlook for its AI business. Google's latest TPUs show Broadcom remains central: JPM
• Neutral Sentiment: Broadcom is cited as having a strong record of earnings surprises, creating expectations for another potential beat; this is a forecast, not a reported result. Will Broadcom Inc. Beat Estimates Again?
• Negative Sentiment: Other recent analyses raise questions about Broadcom’s valuation and its exposure to an AI slowdown, which could weigh on sentiment if growth expectations weaken. How Exposed Is Broadcom Stock To AI Slowdown?

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Royal Bank Of Canada assumed coverage on Broadcom in a report on Thursday, September 3rd. They set an "outperform" rating for the company. KeyCorp reissued an "overweight" rating and issued a $575.00 price objective on shares of Broadcom in a research note on Thursday, September 3rd. Jefferies Financial Group assumed coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $550.00 price objective for the company. TD Cowen restated a "buy" rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. Finally, Truist Financial reduced their target price on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating for the company in a research note on Thursday, September 3rd. 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 stock. According to MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and an average price target of $530.52.

Broadcom Trading Up 4.0%

The company has a market cap of $1.65 trillion, a price-to-earnings ratio of 44.09 and a beta of 1.49. The business has a fifty day simple moving average of $346.14 and a 200 day simple moving average of $366.16. 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 posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business 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 company posted $1.69 EPS. The business's revenue for the quarter was up 85.5% on a year-over-year basis. On average, equities analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Institutional Trading of Broadcom

A number of institutional investors have recently bought and sold shares of AVGO. Cornerstone Advisors LLC purchased a new position in shares of Broadcom during the 2nd quarter worth about $92,522,000. GAMMA Investing LLC grew its holdings in Broadcom by 8.8% in the third quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer's stock valued at $55,889,000 after purchasing an additional 13,317 shares during the period. ANB Bank acquired a new position in Broadcom during the third quarter worth approximately $1,181,000. Bank of America Corp DE raised its stake in 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 period. Finally, Clear Harbor Asset Management LLC acquired a new position in shares of Broadcom in the 2nd quarter valued at $3,302,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.

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.