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The next quarterly Broadcom Inc. (NASDAQ: AVGO) dividend has been approved for September 30, payable to stockholders of record at the close of business today, September 21, 2026.

Eligible investors will receive $0.65 per share, meaning the payout remains unchanged from the last one paid on June 30, 2026, when the company also issued $0.65 per share, totaling $3.1 billion in dividends.

Those holding 100 AVGO shares will thus receive $65 in Broadcom cash dividend this quarter. Combined with the previous two payments, the yearly total, so far, will amount to $195 per 100 shares. If the figure remains the same, the overall payout will climb to $260 in the fourth quarter.

To be eligible for $100 in this quarter’s dividends, investors must hold 154 shares. At the current price of $357, that is an investment of roughly $55,000.

AVGO dividend schedule. Source: DivvyDiary At the current share price, the annualized dividend yield sits at 0.73%, slightly below the broader technology-sector average of 1.37%, so the stock is not primarily a high-yield income investment. 

Rather, the dividend profile is more closely associated with long-term dividend growth. Accordingly, the company’s 16-year dividend increase streak is particularly notable because the company has maintained dividend growth through multiple market cycles.

Its forward payout ratio is 13.51%, which means Broadcom is currently distributing only a relatively small portion of its earnings through dividends. What’s more, the stock has an 8.1-day average price recovery, meaning that, historically, the stock has taken an average of about 8.1 trading days to recover its price after going ex-dividend.

Taken together, these figures portray Broadcom as a company with a modest current yield, low payout ratio, quarterly payments, and a long history of increasing its dividend. Broadcom expects that momentum to continue in Q4, with management projecting total revenue of approximately $34.8 billion, representing 93% year-over-year growth.

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Integrated Wealth Concepts LLC raised its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 58.5% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 205,130 shares of the semiconductor manufacturer’s stock after buying an additional 75,736 shares during the period. Integrated Wealth Concepts LLC’s holdings in Broadcom were worth $76,429,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also added to or reduced their stakes in the company. RFG Advisory LLC increased its stake in shares of Broadcom by 18.0% during the second quarter. RFG Advisory LLC now owns 44,874 shares of the semiconductor manufacturer’s stock valued at $16,951,000 after buying an additional 6,845 shares during the period. Steamboat Capital Partners LLC grew its holdings in Broadcom by 20.9% during the 2nd quarter. Steamboat Capital Partners LLC now owns 54,388 shares of the semiconductor manufacturer’s stock worth $20,545,000 after acquiring an additional 9,388 shares in the last quarter. Pointe Capital Management LLC increased its position in Broadcom by 21.2% during the 2nd quarter. Pointe Capital Management LLC now owns 1,953 shares of the semiconductor manufacturer’s stock valued at $738,000 after purchasing an additional 341 shares during the period. Ehrenkranz Partners L.P. purchased a new position in Broadcom during the 2nd quarter valued at about $238,000. Finally, Governors Lane LP bought a new stake in shares of Broadcom in the 2nd quarter valued at about $5,704,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom News Summary Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom’s custom-chip opportunity remains the main bullish catalyst. Management forecasts AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, while recent reports say AI chip orders are tripling. Investors are looking for evidence that these orders will translate into revenue and earnings growth. Investors Want to Know When Broadcom’s Custom Hyperscaler Chips Will Move Share Prices Positive Sentiment: Analysts and market commentators see substantial upside after the summer selloff. Jim Cramer called AVGO potentially “too cheap to ignore,” while other coverage points to a wide gap between the current share price and Wall Street price targets. Jim Cramer on Broadcom: The Stock May Be Too Cheap to Ignore Positive Sentiment: Broadcom is viewed as a key supplier to the next phase of AI infrastructure, including custom accelerators, networking and inference hardware. Industry commentary also highlights potential growth in enterprise AI and VMware private-cloud demand, although the evidence for that software trend is mixed. Enterprise AI to Boost Broadcom’s Software Business Neutral Sentiment: The broader semiconductor rebound helped lift AVGO, but the stock’s performance is still being driven more by expectations than by newly announced company-specific results. Investors are waiting for custom-hyperscaler chip deployments to produce visible financial impact. Negative Sentiment: Shares have faced pressure after Anthropic and OpenAI leaders urged caution around rapidly scaling advanced AI models. That has raised concerns that hyperscalers could slow infrastructure spending, even though Broadcom’s CEO has reportedly maintained the company’s AI revenue targets. Broadcom Shares Fell as Slower AI Development Raised Demand Concerns Insiders Place Their Bets In other news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 53,492 shares of company stock valued at $20,840,292. Insiders own 1.90% of the company’s stock. Broadcom Stock Up 2.3% Shares of AVGO stock opened at $347.30 on Friday. The stock’s fifty day moving average price is $379.76 and its 200 day moving average price is $379.16. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a market cap of $1.66 trillion, a price-to-earnings ratio of 44.36 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

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, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same period last year, the business posted $1.69 earnings per share. The firm’s revenue was up 85.5% compared to the same quarter last year. On average, research analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Analysts Set New Price Targets Several brokerages have recently weighed in on AVGO. Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. Rosenblatt Securities began coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a “buy” rating and a $600.00 price objective for the company. Truist Financial lowered their target price on Broadcom from $550.00 to $520.00 and set a “buy” rating for the company in a report on Thursday, September 3rd. Weiss Ratings cut Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Finally, Oppenheimer reissued an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and an average target price of $509.04.

Get Our Latest Report on Broadcom

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

See Also Five stocks we like better than Broadcom Aeluma’s Selloff Could Be Setting Up Its Next Big Move Crypto Bill Stalls, Smart Money Calls: Time to Buy the Dip? The September Scramble: Find Sanctuary in These 3 Defensive Dividend Stocks The Fed’s Rate Hike Could Backfire If Oil Prices Collapse Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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NVIDIA just posted triple-digit growth and Broadcom matched it with a custom chip story that has hyperscalers quietly betting billions against the GPU. Something has to give, and the timeline is closer than most investors realize.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Broadcom (NASDAQ:AVGO) delivered blockbuster AI quarters within a week of each other. NVIDIA’s Q2 FY2027 earnings report reinforced GPU dominance. Broadcom’s Q3 FY2026 report showed custom accelerators scaling faster than expected. AI compute is shifting from training-heavy GPU workloads toward inference-optimized ASICs, and both quarters offered evidence of how that handoff might unfold.

Blackwell Ultra Powers One Quarter, Custom XPUs Power the Other NVIDIA posted revenue of $96.22B, up 105.8% YoY, with Data Center at $89.02B (+117%) and Networking at $40.31B (+138%). Jensen Huang told investors “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable.” Q3 guidance sits at $108.0B ±2%, excluding China.

Broadcom’s story was one of concentration. AI semiconductor revenue reached $16.70B, up 221% YoY and 54% sequentially. Google’s Ironwood TPU v7 shipped in volume, TPU v8i began production, and OpenAI’s Jalapeno accelerator started shipping. Hock Tan guided Q4 AI revenue to roughly $21.7B (+236% YoY).

Business Driver NVIDIA Broadcom Main AI Engine Blackwell Ultra, Vera Rubin Custom XPUs for Google, Anthropic, OpenAI, Meta Latest AI Growth Data Center +117% YoY AI semis +221% YoY Networking Bet Spectrum-X, NVLink 72 Tomahawk 6/7, Tomahawk Ultra Platform Fortress Versus Workload Tuned Silicon Huang framed NVIDIA as “a full-stack AI factory platform”, arguing rivals sell “inference-specific chips for one cloud or one service”. Management guided fiscal 2028 revenue growth of approximately 70%.

Broadcom’s counterargument came from customer wins. Tan claimed TPU v8i is “comparable if not surpasses the Vera Rubin GPU”, and that Jalapeno runs OpenAI workloads at “half the cost of a GPU”. Anthropic is expected to deploy five gigawatts of TPU v8i in 2027, and Broadcom has secured supply for roughly $115 billion of AI revenue in fiscal 2027 and $230 billion in fiscal 2028. That suggests investors have a reasonable timeframe to expect Broadcom could begin eroding Nvidia’s dominance in the very near future.

Supply Constraints Decide the Race Both companies are supply-constrained. NVIDIA warned of “extreme pricing conditions in memory“. Broadcom is opening a Singapore substrate factory in fiscal 2027 and tripling laser capacity. Watch whether Vera Rubin holds its “fastest product ramp in NVIDIA’s history” promise and whether Broadcom converts its 10-gigawatt 2028 Anthropic pipeline into shipped silicon.

Why I Own Both, But Weight Them Differently NVIDIA’s CUDA, integrated networking, and financing partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman and KKR build a moat ASICs can chip at but not crack. Broadcom trades at a forward P/E of 18 versus NVDA at 23, despite a clearer glide path from $58 billion in fiscal 2026 AI revenue toward $230 billion in fiscal 2028. Defensive AI investors get more comfort from NVIDIA. Investors chasing the inference era have the more interesting call in Broadcom’s XPU cohort (we reverse-engineered what the biggest tech winners looked like early and turned it into a free playbook here).

Contact [email protected] for any questions or corrections.

Broadcom (AVGO +2.29%) has emerged as one of the most well-rounded artificial intelligence (AI) stocks on the market.

The company has a booming custom-chip and AI-networking business. It makes application-specific integrated circuits (ASICs) for hyperscalers like Alphabet, which achieve cost and efficiency advantages as scale. But Broadcom also has massive infrastructure, software, and general-purpose semiconductor solutions segments that are independent of AI -- giving the company multiple levers to pull to unlock earnings growth.

Broadcom also features a growing dividend, with the next payment of $0.65 per share payable on Sept. 30 to shareholders on record as of Sept. 21.

Here's how many shares of Broadcom you'd need to generate $5,000 in yearly dividends and why Broadcom is one of the best dividend growth stocks to buy now.

Image source: Getty Images.

Consistent dividend raises reward long-term investors At $2.60 per share per year, you'd need 1,923 Broadcom shares -- worth a staggering $652,416 at the time of this writing -- to generate $5,000 in yearly dividends. That's because Broadcom only yields 0.8% -- which isn't even close to high-yield territory. But dividend growth stocks like Broadcom can turn into high-yield stocks for long-term investors.

In December 2025, Broadcom raised its dividend for the 15th consecutive year. Over the last decade, Broadcom's quarterly dividend has grown from a split-adjusted $0.051 per share to $0.65 -- a 29% compound annual growth rate (CAGR) over that period. Even over the last five years, Broadcom's dividend has nearly doubled, growing at a 12.5% CAGR.

If Broadcom continues growing its dividend at a 12.5% CAGR, it will double in just under six years, triple in just over nine years, and quadruple in just under 12 years. In this example, investors who buy the stock at its current 0.8% yield would have a yield on cost of 3.2% in just under 12 years -- effectively turning their initial Broadcom investment into a high-yield vehicle.

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Broadcom can afford a far larger dividend payout While there's no guarantee Broadcom will continue to raise its dividend rapidly, its fundamentals suggest it definitely has the capacity and runway to do so. Unlike hyperscalers like Alphabet that have turned free cash flow (FCF) negative as they invest in AI, Broadcom spends very little on capital expenditures (capex).

In its latest quarter -- Q3 fiscal 2026 -- Broadcom raked in record revenue, operating profit, and FCF of $13.7 billion. It spent just $0.5 billion on capex. And for the first three quarters of fiscal 2026, Broadcom generated $31.94 billion in FCF, compared to $9.28 billion in dividend payments. This means that if it wanted to, it could pay a substantially larger dividend.

However, Broadcom also spent $8.45 billion on stock buybacks in the first three quarters of fiscal 2026 and $10.53 billion on debt repayments. So, investors can expect the company to continue deploying a balanced capital return program between dividends and buybacks while maintaining a rock-solid balance sheet.

A shifting customer base Broadcom is an especially good buy for investors who believe its custom AI chips and networking solutions will continue to take market share in data centers. On its Q3 fiscal 2026 earnings call, Broadcom guided for $115 billion in fiscal 2027 AI revenue and $230 billion in fiscal 2028 AI revenue as orders pour in for its XPU custom AI accelerators. Just six months ago, Broadcom was guiding for $100 billion in 2027 AI revenue, driven by 10 gigawatts (GW) of compute demand.

However, these orders are heavily dependent on sustained capex spending by six key customers -- four of which are Alphabet, Meta Platforms, OpenAI, and Anthropic. Broadcom's rapid development of a custom XPU for OpenAI, called Jalapeno, could reach 5 GW in deployment by 2028, making OpenAI Broadcom's second-largest AI customer. Alphabet is currently first, but Anthropic could overtake Alphabet for the No. 1 spot in the coming years, with potentially 10 GW of deployment by 2028.

AI labs OpenAI and Anthropic, surpassing hyperscalers Alphabet and Meta Platforms in XPU order volumes in the coming years, would make Broadcom an excellent way to benefit from increased use of generative AI, agentic AI, and potentially artificial general intelligence (AGI) -- which OpenAI and Anthropic claim to be nearing. AGI goes beyond specialized workflows, allowing models to think independently and perform tasks across different use cases.

Widespread adoption of AI-powered tools would increase demand for cost-effective compute and, in turn, provide Broadcom with a long runway for growth in AI revenue. However, as Broadcom becomes more dependent on AI labs, it will also become more vulnerable to a slowdown in AI capex spending.

A top dividend growth stock for AI investors At 29.1 times forward earnings, Broadcom is far from a dirt cheap stock. But it stands out as one of the most balanced AI stocks for investors who value a growing dividend.

However, being heavily dependent on order volumes from a handful of customers is a double-edged sword that's accelerating growth now but could eventually make Broadcom's AI revenue so large that it dwarfs its non-AI semiconductor and software segments. If that were to happen, Broadcom would become more of a pure-play AI stock like Nvidia, which generates around 92% of its revenue from data centers. And Broadcom will be far more vulnerable to a slowdown in AI spending.

Therefore, investors should only buy Broadcom if they believe in sustained compute demand increases from OpenAI and Anthropic.

Broadcom's AI chip orders are tripling while the stock keeps sliding, and investors are stuck debating whether the business has already won or whether the hardest part of the trade is still ahead.

At $339.51, Broadcom (NASDAQ:AVGO | AVGO Price Prediction) trades at a widening gap between the company’s accelerating custom AI silicon business and a share price that keeps slipping, and that setup is what makes the story interesting right now.

Broadcom designs the custom XPU accelerators and Ethernet switching silicon that power AI data centers for Google, Meta, OpenAI and Anthropic. In Q3 FY2026, Semiconductor Solutions revenue reached $20.84B, up 127% YoY, with AI semiconductor revenue alone at $16.70B, up 221% YoY. Yet the stock is down 6.83% over the past week and 13.49% over the past month, sitting well below its 52-week high of $494.18. Investors are asking a fair question: when do custom hyperscaler chip wins actually move the share price?

Custom Silicon Backlog Points to $350 Billion by 2028 Management guided Q4 revenue to $34.8B, with AI semiconductor revenue of $21.7B, up 236% YoY. Fiscal 2026 AI revenue was raised to $58 billion, and Hock Tan told analysts Broadcom has secured supply to reach approximately $115 billion in FY2027 AI revenue and roughly $230 billion in FY2028. The company said it has “high degree of confidence” it will ship $350 billion of AI semiconductors to six frontier customers over the next two years.

The chip lineup is real and shipping now: Ironwood TPU v7 to Google and Anthropic in volume, TPU v8i in production, OpenAI’s Jalapeno accelerator moving, and Meta’s MTIA on schedule. Wall Street is on board: 37 Buy and 8 Strong Buy ratings against just 4 Hold and zero Sell calls.

Concentration and Margin Compression Cannot Be Ignored Bears point to a business built on a handful of buyers. Management confirmed a concentrated group of six XPU customers drives frontier compute demand. When CNBC reported Anthropic pushing for a slower ramp, the CEO had to publicly defend the outlook. Broadcom’s CEO addressed Anthropic’s slowdown push and said AI revenue targets have not changed.

Margins are also getting squeezed. Q3 gross margin fell 210 basis points sequentially to 75%, and Q4 is guided to roughly 73% versus 78% a year ago as XPU mix rises. Broadcom is also carrying $59.6 billion in fixed-rate debt while backstopping AI XPV financing arrangements with Apollo and Blackstone. A trailing P/E of 43 leaves no cushion if a hyperscaler blinks.

Why Some Investors Are Waiting for Deployment Proof The hold camp sees a stock stuck between two truths. Fundamentals are extraordinary, but AVGO is down 5% over one year and trades below both its 50-day moving average of $382.77 and 200-day of $370.04. Management itself flagged deployment risk beyond chip shipment, citing land, power, data-center shell and construction timing as constraints. Patient investors may prefer to wait for the Q4 report on December 9, 2026 for confirmation that FY2027 orders are truly locked.

Numbers Behind a Stalled Share Price AVGO trades at $339.51 against an average analyst target of $531.85, implied by 49 covering analysts. Targets are one data point among many, and the implied upside here is substantial. The forward P/E sits at 18 against a trailing 43, reflecting a rapid FY2027 EPS ramp toward a $19.3839 consensus.

Performance tells the frustration story. AVGO is down 1.54% year to date while the S&P 500 has returned 10.58% over the same period. Reddit-driven sentiment has firmed to a composite score of 63.11, bullish with medium confidence, but that has not translated into price yet.

Why AVGO at $339 Could Reward Patient Holders At $339.51, the bull case for Broadcom rests on a few clear catalysts. Here is why.

The path to appreciation is contract conversion. Each quarter that confirms Anthropic, OpenAI, Google and Meta staying on their gigawatt schedules pulls the FY2027 $115 billion AI number from “guidance” to “realized.” The December 9 report is the next hard checkpoint. Full-year FY2027 outlook confirmation, plus continued XPU shipment cadence, should be the trigger that closes the gap toward analyst targets.

Risk/reward at this entry is asymmetric: a forward multiple of 18 on a company generating $13.67B in quarterly free cash flow and $13.09B in net income sits well inside historical semiconductor ranges. The thesis breaks if a major hyperscaler cancels, if HBM supply cracks, or if the AI XPV financing structures create real balance-sheet exposure. Investors should watch AI semiconductor revenue growth, XPU customer count, and gross margin stabilization near 73%. For readers hunting the traits that showed up in the biggest chip winners years before their runs, we cataloged them in a free playbook here.

Broadcom’s share price is stuck because the market is waiting for deployment proof before re-rating, and the December report is the next hard test of whether management delivers exactly that.

Contact [email protected] for any questions or corrections.

Carmignac Gestion raised its stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 150.0% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,354,155 shares of the semiconductor manufacturer’s stock after acquiring an additional 812,504 shares during the quarter. Broadcom makes up 6.5% of Carmignac Gestion’s portfolio, making the stock its 2nd largest holding. Carmignac Gestion’s holdings in Broadcom were worth $511,485,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Geode Capital Management LLC lifted its holdings in 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 purchasing an additional 1,548,699 shares during the last quarter. Norges Bank bought a new stake in Broadcom during the fourth quarter worth about $24,252,196,000. Bank of America Corp DE grew its stake in Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after buying an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after buying an additional 1,892,721 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after buying an additional 1,140,598 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Wall Street Analyst Weigh In Several brokerages have recently commented on AVGO. BMO Capital Markets boosted their target price on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Piper Sandler initiated coverage on Broadcom in a report on Wednesday, September 9th. They set an “overweight” rating and a $460.00 price target for the company. DA Davidson set a $350.00 price objective on Broadcom and gave the company a “neutral” rating in a research report on Friday, September 4th. Fox Advisors raised Broadcom to an “outperform” rating in a research note on Thursday, September 3rd. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and a consensus target price of $509.04.

Get Our Latest Analysis on Broadcom Insider Activity In related news, insider Mark Brazeal sold 25,000 shares of the company’s stock in a transaction 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 completion of the sale, the insider owned 194,989 shares in the company, valued at $78,254,935.37. This represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gayla Delly sold 1,890 shares of the business’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 transaction, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 53,492 shares of company stock valued at $20,840,292 in the last quarter. Company insiders own 1.90% of the company’s stock.

Broadcom Stock Performance Broadcom stock opened at $339.51 on Thursday. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The company has a market cap of $1.62 trillion, a PE ratio of 43.36 and a beta of 1.44. 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 company’s 50-day moving average is $380.83 and its two-hundred day moving average is $378.97.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS 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 firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the previous year, the business earned $1.69 EPS. The business’s quarterly revenue was up 85.5% compared to the same quarter last year. Equities analysts anticipate that Broadcom Inc. will post 10.36 earnings per share for the current year.

Broadcom Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors 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 dividend on an annualized basis and a yield of 0.8%. Broadcom’s payout ratio is currently 33.21%.

Key Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply. Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

See Also Five stocks we like better than Broadcom 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector Jackson’s Record Quarter Powers the Bull Case Holiday Shopping Is Almost Here—And Target May Be Ready to Win Big AI Panic Hit Tech Stocks—But NVIDIA’s Growth Engine Is Intact

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Empirical Finance LLC grew its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 4.1% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 148,958 shares of the semiconductor manufacturer’s stock after buying an additional 5,920 shares during the quarter. Broadcom accounts for approximately 2.3% of Empirical Finance LLC’s portfolio, making the stock its 7th biggest position. Empirical Finance LLC’s holdings in Broadcom were worth $56,269,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in AVGO. Norges Bank acquired a new position in shares of Broadcom during the 4th quarter worth about $24,252,196,000. Legal & General Group Plc acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $10,528,191,000. Jupiter Topco LLC acquired a new position in Broadcom during the second quarter worth approximately $7,396,271,000. Finally, Deutsche Bank AG acquired a new position in Broadcom during the second quarter worth approximately $5,661,216,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply. Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks Wall Street Analysts Forecast Growth A number of brokerages have recently issued reports on AVGO. UBS Group lowered shares of Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, September 3rd. KeyCorp reiterated an “overweight” rating and set a $575.00 price target on shares of Broadcom in a research note on Thursday, September 3rd. Rosenblatt Securities began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $600.00 price objective on the stock. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Citigroup reaffirmed a “buy” rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $509.04. Get Our Latest Report on Broadcom

Insider Activity at Broadcom In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the 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 transaction, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 53,492 shares of company stock worth $20,840,292 over the last 90 days. Company insiders own 1.90% of the company’s stock.

Broadcom Trading Up 0.1% Shares of AVGO stock opened at $339.51 on Thursday. The business’s fifty day moving average price is $380.83 and its 200 day moving average price is $378.97. The firm has a market capitalization of $1.62 trillion, a PE ratio of 43.36 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom’s quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.69 earnings per share. As a group, sell-side analysts forecast 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. Investors of record on Monday, September 21st will be paid a $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is 33.21%.

About Broadcom (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

Featured Stories Five stocks we like better than Broadcom 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector Jackson’s Record Quarter Powers the Bull Case Holiday Shopping Is Almost Here—And Target May Be Ready to Win Big AI Panic Hit Tech Stocks—But NVIDIA’s Growth Engine Is Intact

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Broadcom stock has crashed this year, and is hovering at its lowest level since April this year, leaving one of the biggest companies in the artificial intelligence industry in a technical bear market. AVGO slipped to $340, down by over 31% from its highest point this year, with its market capitalization falling from $2.29 trillion to the current $1.62 trillion. 

AVGO stock has joined other AI companies in falling sharply as concerns about artificial intelligence (AI) rise. These concerns rose this week after several leaders in the industry called for a slowdown in AI model releases. The leaders are concerned about safety, with some expressing fears of large-scale hacking and use of their models in creating biological weapons. 

These fears have pushed most companies in the AI industry in a technical bear market as investors assess how an intentional slowdown means. 

However, in reality, analysts believe that many AI companies will continue doing well in the coming months. Broadcom is one such company, having become a major player in the AI sector. 

The most recent results showed that its revenue jumped by 48% in the second quarter to $22 billion. This growth was driven by its AI semiconductor sector, whose revenue surged by 104% to $10.8 billion. Its AI accelerators and AI network tools have seen substantial demand from top clients like OpenAI and Apple. 

Most importantly, management raised its outlook for the AI semiconductor business. It now expects to make over $16 billion in the third quarter, up by 200% from the same period last year. This makes it one of the fastest-growing companies in the industry. 

That guidance pushed more analysts to change their estimates for the quarter and year. As a result, analysts now expect that its total Q3 revenue will be over $34.8 billion, up by 93% from the same quarter last year. 

For the fourth quarter, they expect the revenue to jump by 91% to $36.94 billion, bringing the annual figure to $105.9 billion. In other words, based on analysts' estimates, its annual revenue in the next two years will jump by over 50%. In most cases, Broadcom tends to outperform what analysts expect. 

The same is true with its profitability, with analysts expecting its EPS to jump to $11.6 this year from $6.8 last year.  It will then hit $19.38 next year. 

This growth will partly be driven by its relationship with OpenAI. The two companies recently unveiled Jalapeno, a chip that OpenAI believes is faster than those made by Nvidia. 

Fundamentally, Broadcom is also not extremely overvalued. It trades with a forward price-to-earnings ratio of 29, slightly higher than the five-year average of 27. Its forward PEG ratio has moved to 0.53, which is lower than the sector median of 1.16 and the five-year average of 1.38. 

AVGO stock chart | Source: TradingView

The daily chart shows that the AVGO stock has been in a strong downward trend in the past few months. It has slipped from a record high of $495 to the current $340. It has already dropped below the key support level of $356, its lowest level in July and August this year. 

The stock has also slipped below the 61.8% Fibonacci Retracement level and the 50-day moving average. Therefore, the stock will likely remain under pressure in the coming days and then bounce back once these AI jitters ease. In this, it may drop to $300 before starting another bull run.

Second Line Capital LLC lifted its stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 239.5% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 9,937 shares of the semiconductor manufacturer’s stock after buying an additional 7,010 shares during the quarter. Second Line Capital LLC’s holdings in Broadcom were worth $3,754,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Networth Advisors LLC lifted its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the last quarter. Harborfront Financial Group LLC purchased a new position in Broadcom in the second quarter valued at $38,000. Cherry Tree Wealth Management LLC raised its stake in Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer’s stock valued at $45,000 after buying an additional 40 shares in the last quarter. Godfrey Financial Associates Inc. acquired a new stake in Broadcom in the fourth quarter valued at $56,000. Finally, Coppell Advisory Solutions LLC purchased a new stake in Broadcom during the 2nd quarter worth about $60,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Performance Shares of AVGO opened at $339.51 on Thursday. The company’s 50 day simple moving average is $380.83 and its 200-day simple moving average is $378.97. The firm has a market cap of $1.62 trillion, a PE ratio of 43.36 and a beta of 1.44. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a current ratio of 2.50, a quick ratio of 2.29 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 EPS for the quarter, beating 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. Broadcom’s revenue for the quarter was up 85.5% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 10.36 EPS for the current year. Broadcom Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Broadcom News Roundup Here are the key news stories impacting Broadcom this week:

Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply. Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks Insider Buying and Selling at Broadcom In related news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction 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 directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Justine Page sold 1,602 shares of the business’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 53,492 shares of company stock worth $20,840,292. 1.90% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades A number of research analysts have recently commented on AVGO shares. The Goldman Sachs Group reiterated a “buy” rating on shares of Broadcom in a report on Monday, August 3rd. Benchmark upped their price target on Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a research note on Thursday, September 3rd. Citigroup restated a “buy” rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus target price of $509.04.

Check Out Our Latest Stock Analysis on AVGO

About Broadcom (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

Recommended Stories Five stocks we like better than Broadcom 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector Jackson’s Record Quarter Powers the Bull Case Holiday Shopping Is Almost Here—And Target May Be Ready to Win Big AI Panic Hit Tech Stocks—But NVIDIA’s Growth Engine Is Intact Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Broadcom (AVGO -4.32%)'s stock has soared close to 600% over the past five years. But lately, things haven't been as rosy for the custom chipmaker. After reaching highs of nearly $500 earlier this year, the stock has struggled to get back to anywhere near those levels again; currently, it's down around 30% from its 52-week high.

Between a high valuation, high expectations, and concerns rising about a potential bubble in artificial intelligence (AI), there are multiple reasons as to why investors may not be feeling as bullish about Broadcom these days. Is this just a temporary setback for the AI stock, and could now be a good time to invest in Broadcom, or is it really in trouble and likely heading even lower?

Image source: Getty Images.

Broadcom's latest earnings results haven't helped the stockThe turning point for Broadcom's stock appeared to take place in early June, when the tech company released its quarterly numbers. While Broadcom's sales were up an impressive 48% year over year and totaled just under $22.2 billion, they were still short of analyst projections. Investors were also troubled that it didn't raise its guidance. For a stock that's trading at a high valuation, investors expect to see beat-and-raise quarters. Broadcom didn't deliver a full beat, and it didn't raise its guidance.

Earlier this month, it posted its most recent earnings numbers, and while it did beat on both the top and bottom lines this time around, it was once again the guidance that didn't appear to win over investors, coming just short of analyst projections. Meanwhile, a closer relationship with OpenAI, about which investors have grown increasingly concerned amid questions about the chatbot maker's ability to turn a profit, may also be weighing on Broadcom, as it could add risk down the road.

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The stock looks cheap, but it isn't without risksDue to its declining share price, Broadcom's stock is looking much more attractive, as its valuation is much more reasonable. It's currently trading at just 19 times its expected future earnings (based on analyst expectations). That's lower than the S&P 500 average of 20.

While Broadcom's stock may not exactly be a dirt cheap bargain, and it may still go lower, it could make for a much more tenable investment now than earlier in the year, when it was trading at a far higher premium. With the business experiencing tremendous growth due to AI, the stock could be worth buying right now as demand for custom chips is likely to remain strong for the foreseeable future.

The big problem with Broadcom's stock was its inflated valuation. But now, with it trading at more reasonable levels, investors may want to consider buying it for the long haul.

Odyssean LLC raised its holdings in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 72.9% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 7,781 shares of the semiconductor manufacturer’s stock after acquiring an additional 3,282 shares during the quarter. Odyssean LLC’s holdings in Broadcom were worth $2,939,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of AVGO. Norges Bank acquired a new stake in Broadcom in the fourth quarter worth about $24,252,196,000. Legal & General Group Plc acquired a new stake in Broadcom during the 2nd quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in Broadcom during the 2nd quarter valued at approximately $10,528,191,000. Jupiter Topco LLC purchased a new stake in shares of Broadcom in the 2nd quarter valued at $7,396,271,000. Finally, Deutsche Bank AG acquired a new stake in shares of Broadcom in the second quarter worth $5,661,216,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Key Headlines Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Analyst upgrade: Piper Sandler upgraded Broadcom to “strong buy,” reinforcing confidence in the company’s earnings growth and AI semiconductor outlook. Zacks Broadcom analyst upgrade Positive Sentiment: AI revenue expectations remain a major catalyst: Broadcom projects approximately $115 billion in AI semiconductor revenue for fiscal 2027 and $230 billion for fiscal 2028. Custom accelerators and networking products are benefiting from hyperscalers seeking lower-cost, workload-specific alternatives to Nvidia’s chips. Broadcom AI semiconductor revenue forecast Positive Sentiment: Strong customer demand: OpenAI, Anthropic, Alphabet and Meta are cited as buyers or potential buyers of Broadcom-designed accelerators, supporting the view that the company can gain share as AI infrastructure becomes more diversified. Broadcom custom AI accelerator demand Positive Sentiment: Recent execution was solid: Broadcom exceeded quarterly earnings and revenue estimates, while revenue rose sharply year over year. Analysts continue to argue that improving profits could eventually support a significantly higher valuation. Broadcom earnings and analyst coverage Neutral Sentiment: Market and valuation backdrop: Rising Treasury yields and a high earnings multiple are encouraging investors to scrutinize expensive AI stocks, even when long-term demand remains strong. Broadcom’s ability to deliver on its 2027–2028 forecasts will be critical. Negative Sentiment: Competitive uncertainty: Google’s internal chip efforts and OpenAI’s newly disclosed Samsung partnership have raised questions about whether some future custom-chip business could bypass Broadcom. The impact is unclear, but the developments may pressure near-term sentiment. Broadcom Google chip risks Insider Buying and Selling In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction 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 completion of the transaction, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 61,644 shares of company stock valued at $24,016,214 in the last three months. 1.90% of the stock is owned by corporate insiders. Broadcom Stock Performance Shares of AVGO stock opened at $361.99 on Monday. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The firm’s 50 day moving average price is $383.03 and its 200-day moving average price is $378.66. The firm has a market cap of $1.73 trillion, a P/E ratio of 46.23 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company’s quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.69 EPS. As a group, equities research analysts predict that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s payout ratio is 33.21%.

Analyst Upgrades and Downgrades Several research analysts recently issued reports on the stock. Lake Street Capital raised shares of Broadcom to a “buy” rating in a report on Thursday, September 3rd. Oppenheimer reaffirmed an “outperform” rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. BMO Capital Markets raised their price target on shares of Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. JPMorgan Chase & Co. raised their price objective on Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a report on Thursday, June 4th. Finally, Mizuho boosted their target price on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Broadcom currently has a consensus rating of “Moderate Buy” and a consensus price target of $505.97.

Check Out Our Latest Analysis on AVGO

About Broadcom (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

Further Reading Five stocks we like better than Broadcom Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Planet Labs Has Fallen Back to Earth, But Wall Street Still Sees a Rebound As Homeowners’ Premiums Surge, This Insurer Is Posting Record Profits Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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The artificial intelligence (AI) hardware race used to look like a two-lane highway: Nvidia (NVDA -0.03%) sold general-purpose graphics processing units (GPUs), while Broadcom (AVGO +0.32%) sold custom silicon, known as XPUs.

That story is becoming stale. After Nvidia and Broadcom each reported earnings, it's becoming increasingly clear that both companies look less like chip specialists and more like competing architects for the entire data center.

The question is no longer which company makes the better accelerator. Rather, investors should assess who is positioned to capture more of the AI infrastructure stack as hyperscalers continue to spend record sums on both custom ASICs and general-purpose chips.

Image source: The Motley Fool.

AI infrastructure is no longer a story of GPUs vs. XPUs Nvidia is no longer just a pure-play GPU designer. During the second quarter, the company's data center segment generated $89 billion in revenue, up 117% from a year earlier. The interesting part is what sat alongside the GPU sales.

Grace CPUs, launched in 2021, have generated more than $5 billion in sales over the last year. Moreover, the new Vera Rubin CPUs are expected to generate roughly $20 billion in sales by next quarter, with management forecasting revenue to more than double in fiscal 2028 as the platform ramps.

Meanwhile, Nvidia's software layer continues to expand through CUDA, Nemotron, Cosmos, and Isaac. The company's recent acquisition of Hugging Face for $12.9 billion is the clearest manifestation of this software shift, underscoring how Nvidia is becoming the place where generative models are shared, not just the silicon they run on.

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Broadcom sits on the other side of the chip equation. Custom accelerators are the primary growth engine, with XPUs shipments comprising 73% of the company's $16.7 billion in AI semiconductor sales last quarter.

However, networking solutions are supposed to grow just as fast in the upcoming quarter. Meanwhile, infrastructure software generated $8.8 billion in revenue -- up 29% year over year. This growth is respectable and shows that the VMware acquisition is proving a transformative complement to Broadcom's semiconductor business.

Custom chips for Alphabet's Google Cloud, OpenAI, Meta Platforms, and Anthropic sit on top of Ethernet switches, optics, and software that Broadcom provides. CEO Hock Tan gives a straightforward pitch: If you design chips around one customer's model requirements, you can make it cheaper and more power-efficient than a one-size-fits-all GPU.

Inside the rack, Nvidia and Broadcom occupy different floors. Nvidia wants to be the reusable AI factory that any cloud provider or enterprise can plug into seamlessly. On the other hand, Broadcom wants to become a purpose-built engine for a handful of giant customers that will reorder by the gigawatt.

The subtle theme here is that hyperscalers are buying both solutions, making the investment choice between Nvidia and Broadcom much tougher.

Breaking down how Nvidia and Broadcom work with AI hyperscalers During the second-quarter earnings call, investors learned that Nvidia expanded its relationship with Amazon Web Services (AWS) to include another 2 million GPUs through fiscal 2029. In addition, the company is also helping fund a 12-gigawatt data center campus that OpenAI is building in Ohio alongside SoftBank Energy.

When you layer in that every major cloud provider is already taking orders for Vera Rubin and the company's book of non-hyperscaler customers grew 138% year over year to $40 billion, it's nearly impossible to think about the infrastructure supercycle without Nvidia touching multiple sockets.

Broadcom's version of this story is almost as large as Nvidia but far more concentrated. Anthropic is on a path to grow from 1 gigawatt of Ironwood this year to 5 gigawatts of TPU v8i in 2027, giving Broadcom a line of sight to 10 gigawatts by 2028. OpenAI is narrowly trailing its rival, with 1.3 gigawatts of Jalapeno inference chips deployed in 2027 and more than 5 gigawatts in 2028. Meanwhile, Google Cloud remains a multiyear design partner for its Tensor Processing Units (TPUs), and Meta has three generations of custom MTIA chips booked through 2027.

Nvidia vs. Broadcom: Which is the better stock to buy? The near-term math between Nvidia and Broadcom is pretty blunt. Nvidia guided current-quarter revenue to $108 billion, with no China data center compute included in this figure. Meanwhile, fiscal 2028 revenue growth is pegged at about 70%, with CFO Colette Kress calling it a "supply-constrained outlook." Unconstrained demand calls for growth above 70%, but memory, wafers, power, and shells are the bottlenecks through the end of next fiscal year.

Broadcom guided the current quarter to land around $34.8 billion in revenue, with AI semiconductors growing 236% year over year to $21.7 billion. For full-year fiscal 2026, AI revenue was raised to $58 billion -- reflecting 186% growth from last year.

Then the real tell is what management forecasts over the next two years. In fiscal 2027, AI revenue is expected to be $115 billion, surging to $230 billion by fiscal 2028. To put it another way, Broadcom is expected to double the size of its AI business for two consecutive years.

While growth rates favor Broadcom's AI business, breadth and cash generation favor Nvidia. This means valuation is what breaks the tie when picking between the two stocks. Nvidia trades around 28 times on a trailing price-to-earnings (P/E) basis and roughly 23 times forward earnings. Broadcom sits closer to a 46 times trailing P/E and about 31 times forward P/E.

In other words, investors are paying less for a company that is still guiding to 70% growth, with a broader customer set and a software distribution deal that Broadcom does not have.

NVDA PE Ratio data by YCharts

While custom silicon will keep winning market share from the frontier labs that can afford it, Nvidia is selling the scarcer asset: a comprehensive platform that many models can run on, backed by a balance sheet that can help finance and secure power and infrastructure years in advance. While its valuation multiples may not reflect it, Nvidia is already selling this platform across hyperscalers, neoclouds, and sovereign enterprises at once. That is why I think Nvidia has more upside than Broadcom and is the better buy of the two.

B. Metzler seel. Sohn & Co. AG lifted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 27.1% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 871,867 shares of the semiconductor manufacturer’s stock after purchasing an additional 185,952 shares during the period. Broadcom accounts for 2.9% of B. Metzler seel. Sohn & Co. AG’s holdings, making the stock its 6th biggest holding. B. Metzler seel. Sohn & Co. AG’s holdings in Broadcom were worth $329,348,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Brighton Jones LLC grew its position in shares of Broadcom by 21.8% in the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after buying an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in shares of Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock worth $1,854,000 after acquiring an additional 756 shares during the period. United Bank lifted its stake in shares of Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock worth $392,000 after acquiring an additional 1,014 shares during the period. Sivia Capital Partners LLC boosted its holdings in Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after acquiring an additional 1,160 shares during the last quarter. Finally, Capital & Planning LLC boosted its holdings in Broadcom by 10.5% in the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after acquiring an additional 378 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Stock Up 0.3% Shares of NASDAQ AVGO opened at $361.99 on Friday. 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 firm has a market cap of $1.72 trillion, a PE ratio of 46.23 and a beta of 1.44. The company’s fifty day simple moving average is $383.03 and its 200 day simple moving average is $378.32. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00.

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, beating 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 period in the previous year, the firm posted $1.69 earnings per share. The business’s revenue was up 85.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year. Broadcom Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s payout ratio is presently 33.21%.

Key Stories Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Analyst upgrade: Piper Sandler upgraded Broadcom to “strong buy,” reinforcing confidence in the company’s earnings growth and AI semiconductor outlook. Zacks Broadcom analyst upgrade Positive Sentiment: AI revenue expectations remain a major catalyst: Broadcom projects approximately $115 billion in AI semiconductor revenue for fiscal 2027 and $230 billion for fiscal 2028. Custom accelerators and networking products are benefiting from hyperscalers seeking lower-cost, workload-specific alternatives to Nvidia’s chips. Broadcom AI semiconductor revenue forecast Positive Sentiment: Strong customer demand: OpenAI, Anthropic, Alphabet and Meta are cited as buyers or potential buyers of Broadcom-designed accelerators, supporting the view that the company can gain share as AI infrastructure becomes more diversified. Broadcom custom AI accelerator demand Positive Sentiment: Recent execution was solid: Broadcom exceeded quarterly earnings and revenue estimates, while revenue rose sharply year over year. Analysts continue to argue that improving profits could eventually support a significantly higher valuation. Broadcom earnings and analyst coverage Neutral Sentiment: Market and valuation backdrop: Rising Treasury yields and a high earnings multiple are encouraging investors to scrutinize expensive AI stocks, even when long-term demand remains strong. Broadcom’s ability to deliver on its 2027–2028 forecasts will be critical. Negative Sentiment: Competitive uncertainty: Google’s internal chip efforts and OpenAI’s newly disclosed Samsung partnership have raised questions about whether some future custom-chip business could bypass Broadcom. The impact is unclear, but the developments may pressure near-term sentiment. Broadcom Google chip risks Insider Buying and Selling In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the firm’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 completion of the sale, the insider directly 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. In the last three months, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by company insiders.

Wall Street Analyst Weigh In Several research analysts have issued reports 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. Morgan Stanley reaffirmed an “overweight” rating and issued a $505.00 price objective (up from $502.00) on shares of Broadcom in a research note on Thursday, September 3rd. Royal Bank Of Canada started coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating for the company. KeyCorp reissued an “overweight” rating and set a $575.00 target price on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Bank of America boosted their target price on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $505.97.

Get Our Latest Report on Broadcom

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

See Also Five stocks we like better than Broadcom Block Makes a Federal Trust Bank Move That Could Reshape Its Fintech Model Kroger’s Textbook Entry for Buy-and-Hold Investors AST SpaceMobile Looks to Extend Its 30-Day FCC Satellite Testing Window Amgen Drops 10% on a Trial It Didn’t Even Run Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Future Fund Managing Partner Gary Black is doubling down on one of his favorite stocks in recent weeks, with a call to look at the valuation metrics of the Magnificent Seven stocks and another large technology company, a grouping he calls the "Mag 8."

Mag 8 ValuationsA recent drop in Broadcom Inc (NASDAQ:AVGO) shares after quarterly earnings has left the stock trading at a lower valuation than the Magnificent Seven stocks.

Black highlights the discrepancy in a recent social media post and chart. Here are some of the highlights from the chart:

"The cheapest of the Mag 8 on 2026 P/E vs forward long-term eps growth (PEG) is $AVGO at 0.9x," Black tweeted.

For comparison, Tesla Inc (NASDAQ:TSLA) is the most expensive of the eight stocks with a PEG of 4.8x.

Black highlights Nvidia Corporation (NASDAQ:NVDA) as the best year-to-date performer of the eight stocks, with a low PEG of 1.1.

Tesla, with a high PEG, is the worst-performing Mag 8 stock.

Read Next

Black on Broadcom StockBlack recently defended Broadcom stock after shares fell following third-quarter financial results.

The company’s AI-related revenue had Black expecting shares to rebound from the immediate negative reaction.

“As the AI Rev strength becomes clearer to investors, I expect the stock to recover somewhat,” Black tweeted.

Black highlighted Broadcom CEO Hock Tan, who said AI chip demand is higher than what they can currently ship.

Third-quarter AI revenue of $16.7 billion was up 221% year-over-year and beat a Street consensus estimate of $15.9 billion.

Black also highlighted Broadcom’s guidance for fourth-quarter AI revenue to be $21.7 billion, which would be up 236% year-over-year. That total is above a Street consensus estimate of $21.3 billion.

For fiscal 2026, Broadcom now sees AI revenue hitting $58 billion, up from a previous guide of $56 billion. That total would be up 186% year over year.

Broadcom stock closed at $367.24 on Sept. 2, the day of third-quarter earnings. Shares opened at $351.74 the following morning.

Over the last week plus, the stock has somewhat recovered, with shares now trading at $361.12, higher than their opening price after earnings, but still lower than where they were before the earnings print.

Based on earnings forecasts, the stock is cheaper than other Mag 8 names and could still be an option for investors after the post-earnings decline.

Read Next

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SummaryOpenAI partnered with Broadcom to develop its first custom inference chip: Jalapeño. It's a much more cost- and power-efficient way to monetize AI compared to using NVIDIA GPUs.Jalapeño was designed using an AI-optimized architecture. It achieves lower latency, higher throughput, and industry-leading performance and uses less power than existing solutions, at less than half the cost of GPUs.Phase I of the AI boom focused on GPU compute capacity for LLM training. Phase II will be focused on inference - a far larger market. Broadcom's XPU business will thrive.Broadcom expects to generate $350 billion in AI semiconductor revenue over the next two years, led by TPU/XPU designs for Google, OpenAI, and Anthropic.I reiterate my Strong Buy on Broadcom after Q3's results (net income, EPS, and free cash flow all grew 95%+ yoy) and the new 2-year $350 billion AI semiconductor revenue guidance.23.65K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO, NVDA, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Broadcom and Marvell both crushed their AI quarters, but the real story is how one company's weakness quietly became the other's most powerful sales pitch.

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Marvell Technology (NASDAQ: MRVL | MRVL Price Prediction) and Broadcom (NASDAQ: AVGO) both delivered blowout AI quarters, yet they now sit on opposite ends of the custom silicon spectrum. Broadcom just posted $29.591B in revenue with AI chips alone at $16.7B. Marvell’s entire business came in at $2.739B. That size gap frames Marvell’s pitch as the focused alternative.

Two AI Beats, Very Different Scales Marvell’s Q2 FY27 revenue rose 36.5% year over year, with Data Center reaching 79% of the mix and growing 46%. CEO Matt Murphy said “AI-related bookings remain exceptionally robust” and lifted the FY27 and FY28 outlooks again. Non-GAAP operating margin reached 36.6%, closing in on the company’s 38% to 40% long-term target.

Broadcom’s report was a different animal. AI semiconductor revenue jumped 221% year over year, and Hock Tan guided Q4 AI revenue to $21.7B. He told investors Broadcom has secured supply to gain double AI revenue to approximately $115 billion in fiscal 2027 and $230 billion in 2028. No rival can casually match that scale.

Focused Specialist Versus Sprawling Platform Broadcom is really three businesses in one: custom XPUs for six hyperscale customers including Google, Anthropic, OpenAI, and Meta; Tomahawk Ethernet switching; and the VMware software stack, which added $8.752B in Q3. Tan is even helping finance customer buildouts through the AI XPV platform with Apollo and Blackstone.

Marvell is doing the opposite. Murphy’s pitch is speed and customization. The expanded Google agreement, which includes a warrant for up to 7% of Marvell’s shares tied to revenue milestones, spans inference accelerators, storage controllers, NICs, memory interface controllers, and near-memory compute. Layer in the Celestial AI and XConn acquisitions, and MRVL looks like the pure-play optical and custom silicon partner hyperscalers can lean on without feeding Broadcom’s leverage.

Lens Marvell Broadcom Core Bet Focused custom silicon plus optics End-to-end AI platform plus software Near-Term AI Scale Custom ramps in H2 FY27 $21.7B AI revenue guide Key Vulnerability Google concentration Supply and financing exposure Why October 6 Is the Real Test Marvell’s October 6, 2026 Investor Day is the catalyst worth circling. Murphy hinted at “significant upside bias” to the prior $10 billion kind of plus fiscal 2029 custom revenue target. I want to see how much of that comes from Google versus other hyperscalers, because customer concentration cuts both ways (we reverse-engineered what the biggest AI chip winners looked like early in a free playbook here).

Why I Like Marvell’s Setup More From Here Broadcom is the safer compounder. But at a $1.753T market cap versus Marvell’s $197.7B, an incremental billion of AI revenue moves the needle far less at AVGO. MRVL climbed 242.26% over the past year against AVGO’s 7.41%, and the anti-Broadcom narrative still has room to run if Custom doubles in FY28 as guided. If you want steady free cash flow and enterprise software optionality, Broadcom fits better. If Investor Day underwhelms, the VMware annuity could make AVGO the more defensible holding to revisit.

Contact [email protected] for any questions or corrections.

Braun Stacey Associates Inc. cut its holdings in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 12.2% in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 200,903 shares of the semiconductor manufacturer’s stock after selling 27,916 shares during the period. Broadcom accounts for about 2.2% of Braun Stacey Associates Inc.’s holdings, making the stock its 8th biggest position. Braun Stacey Associates Inc.’s holdings in Broadcom were worth $75,891,000 at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in the business. ROSS JOHNSON & Associates LLC lifted its position in Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC grew its holdings in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares during the period. SWAN Capital LLC increased its stake in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. Harborfront Financial Group LLC acquired a new position in shares of Broadcom during the 2nd quarter valued at about $38,000. Finally, Cherry Tree Wealth Management LLC lifted its holdings in shares of Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer’s stock worth $45,000 after acquiring an additional 40 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

Insider Activity In other news, Director Gayla Delly sold 1,890 shares of Broadcom stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 61,644 shares of company stock worth $24,016,214 over the last three months. Insiders own 1.90% of the company’s stock.

Analyst Upgrades and Downgrades Several research firms recently issued reports on AVGO. Raymond James Financial reissued an “outperform” rating and issued a $475.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. Weiss Ratings downgraded shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Wells Fargo & Company reiterated an “overweight” rating and issued a $545.00 price target (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Cantor Fitzgerald boosted their price objective on shares of Broadcom from $525.00 to $600.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Finally, Benchmark increased their target price on Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Thirty analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $504.93. Read Our Latest Analysis on Broadcom

Broadcom Stock Up 3.0% Shares of NASDAQ AVGO opened at $368.56 on Wednesday. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a market cap of $1.75 trillion, a P/E ratio of 47.07 and a beta of 1.44. 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 stock has a fifty day moving average price of $383.09 and a 200 day moving average price of $378.02.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the previous year, the firm posted $1.69 earnings per share. The firm’s quarterly revenue was up 85.5% on a year-over-year basis. Research analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be given a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Trending Headlines about Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom’s latest results showed powerful AI momentum: AI semiconductor revenue increased 221% to $16.7 billion, while management raised its fiscal 2027 AI revenue outlook to approximately $115 billion, up from more than $100 billion previously. Some projections cited in the coverage point to $230 billion in AI revenue by fiscal 2028. Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Nvidia GPUs Positive Sentiment: Analysts continue to raise their expectations, with Cantor reportedly assigning a $600 price target. Bullish analysts argue that hyperscalers increasingly want custom accelerators, AI networking and complete data-center architectures—not only Nvidia GPUs—giving Broadcom a larger role in inference and other workloads. Top Analyst Sets $600 Broadcom Stock Target Positive Sentiment: A multi-generation Amazon AI-silicon agreement with Qualcomm also highlights the growing data-center market for custom chips. Although Qualcomm is the direct beneficiary, the deal reinforces the strategic importance of custom silicon and supports the broader investment case for Broadcom’s design and networking business. Qualcomm Amazon AI Silicon Deal Neutral Sentiment: The post-earnings reaction has been mixed because investors are scrutinizing near-term guidance, Broadcom’s share of customers’ tensor processing unit programs, and whether constrained chip supply can keep pace with demand. Wall Street remains broadly optimistic, but expectations are exceptionally high. Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Negative Sentiment: Bearish coverage points to margin pressure, customer concentration, supply constraints and a premium valuation—Broadcom trades at roughly 47 times earnings—leaving limited room for execution mistakes. These concerns help explain why strong earnings did not produce a uniformly positive market response. Broadcom Buy, Sell or Hold Analysis About Broadcom (Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

Read More Five stocks we like better than Broadcom Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Broadcom just delivered an earnings report that analysts say rewrites the AI semiconductor playbook entirely, and the numbers behind its custom chip roadmap suggest the biggest demand wave is still ahead.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) just posted the most consequential AI earnings report of the year.

Q3 FY2026 AI semiconductor revenue hit $16.70 billion, up 221% year over year and 54% quarter over quarter, and management now expects fiscal 2027 AI revenue near $115 billion and fiscal 2028 near $230 billion. That trajectory reframes the entire AI supply chain, and it reframes our model.

Our 24/7 Wall St. price target for Broadcom is $422.39, implying 18.92% upside from a current price of $355.18. Our recommendation is buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $355.18 24/7 Wall St. Price Target $422.39 Upside 18.92% Recommendation BUY Confidence Level 90% A Volatile Year Ending in a Blowout Quarter AVGO is up 24.04% over the past year and 6.5% year to date, but the path has been jagged. The stock touched a 52-week high of $494.18 and a low of $289.48, and shares are still down 6.37% over the past month.

Q3 revenue of $29.591 billion beat consensus, and non-GAAP EPS of $3.32 extended a nine-quarter EPS beat streak. Q4 guidance calls for revenue of roughly $34.8 billion, up 93% year over year, with AI accelerating to $21.7 billion, up 236%.

Why Bulls See $530 and Higher The bull case is written in the transcript. Hock Tan said Broadcom has “a pretty high degree of confidence we will ship $350 billion of AI semiconductors to these customers in the next two years” and is “very much on target to exceed $30 in earnings per share in fiscal 2028.”

Broadcom now has six XPU customers, ships Ironwood TPU v7 to Anthropic and Google, began production of Jalapeno for OpenAI, and has line of sight on 3 gigawatts of Meta MTIA capacity through 2028. Our bull scenario points to $533.50, a 50.2% one-year return.

What Could Go Wrong Customer concentration is real. Management noted four of the six XPU customers are expected to be particularly large, and gigawatt deployments depend on land, power, HBM memory, substrates, and leading-edge wafers.

Q4 gross margin is guided to 73%, down from 78% a year ago, as XPU mix rises. Bulls counter that operating margin still expanded 240 basis points to 67.9%, so mix pressure is being offset by scale. Our bear scenario lands at $373.83.

How Broadcom Compares to NVIDIA and Marvell NVIDIA (NASDAQ:NVDA) is the merchant GPU king and the natural benchmark. NVIDIA trades at 24x forward earnings with quarterly revenue growth of 105.9% year over year. That is roughly comparable to Broadcom’s forward multiple on $14.41 forward EPS, and it suggests our target is reasonable given AVGO’s 85.5% revenue growth.

Marvell Technology (NASDAQ:MRVL) is the closest direct competitor in custom ASIC and AI networking silicon. Marvell trades at 50x forward earnings with only 36.5% revenue growth. Broadcom is growing more than twice as fast at a materially cheaper multiple, which makes our 24/7 Wall St. price target look conservative on the peer set.

Company Forward P/E Rev Growth YoY Broadcom ~25x 85.5% NVIDIA 24x 105.9% Marvell 50x 36.5% Broadcom Price Prediction 2026 to 2030 The 24/7 Wall St. price target is $422.39, buy, with 90% confidence. The tipping factor is visibility: management gave a multi-year AI revenue roadmap tied to named customers and gigawatt deployments.

The bull thesis strengthens if Q4 AI revenue lands at or above the $21.7 billion guide. The thesis weakens if gross margin slips meaningfully below the guided 73% or if any of the top four XPU customers pushes out deployment timing.

Year 24/7 Wall St. Price Target 2026 $372.99 2027 $410.65 2028 $478.87 2029 $535.93 2030 $571.45 These projections assume Broadcom continues executing on its custom accelerator roadmap and networking attach rate.

Significant upside or downside could result from OpenAI and Anthropic deployment timing, Google TPU volumes, or supply availability of HBM, substrates, and leading-edge wafers. The gigawatt buildout also depends on the power, cooling, and networking suppliers standing behind the data centers themselves, which we profiled in a free report on seven AI infrastructure stocks that aren’t chipmakers.

Contact [email protected] for any questions or corrections.

Broadcom Today

$368.56 +10.67 (+2.98%)

As of 09/8/2026 04:00 PM Eastern

$289.96▼

$495.000.71%

47.07

$504.93

Despite providing investors with many impressive metrics, Broadcom NASDAQ: AVGO stock couldn’t get off the ground after the firm's latest earnings report. The day after earnings, Broadcom declined by 2.7%, a modest decline, but clearly not what many investors were hoping for.

Even with that disappointment, a key segment of the investment community continued to show strong support for Broadcom: Wall Street analysts. In aggregate, Broadcom saw its price targets move up after earnings. However, not all analysts viewed the report favorably, with multiple firms moving their targets down or lowering their ratings on the stock. Nonetheless, the analyst community still points to significant gains ahead for the chip giant, with many projecting the stock to move above its previous all-time high closing price.

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Broadcom Targets Rise as Analysts Debate the AI OutlookFollowing Broadcom’s earnings, MarketBeat tracked several price target increases and several price target decreases, suggesting that analysts did not fully align on the report’s implications. However, overall, analysts' sentiment remained constructive.

The MarketBeat consensus price target sits around $505, implying about 36% upside from recent levels and suggesting analysts still see room for the stock to move above its prior all-time high.

Rosenblatt Securities and Cantor Fitzgerald were among the analysts most impressed by Broadcom’s report. Rosenblatt moved its target up by 20%, from $500 to $600. Meanwhile, Cantor Fitzgerald’s target rose over 14% from $525 to $600. Their targets are now among the highest on Broadcom, implying upside of more than 60%.

Cantor Fitzgerald acknowledged investor concerns regarding the macroeconomic outlook, and that rising AI-related debt could impact future AI spending. However, the firm also said it sees potential for Broadcom’s growth to accelerate in 2028. Broadcom is already guiding for AI semiconductor revenue of $58 billion in fiscal 2026, about $115 billion in fiscal 2027, and $230 billion in fiscal 2028.

Cantor Fitzgerald may believe Broadcom could exceed its 2028 AI chip sales guidance, which is currently at $230 billion, causing growth to accelerate rather than fall off. This may not be unreasonable, given that Broadcom’s growth is currently supply-constrained. Should various supply constraints ease over time, it could allow Broadcom to exceed its 2028 growth expectations.

DA Davidson Cites Near-Term GuidanceOn the other hand, DA Davidson, TD Cowen, and Truist Financial were among the analysts who lowered their targets after Broadcom’s report. DA Davidson reduced its target to $350, TD Cowen lowered its target to $475, and Truist’s target fell to $520. UBS also downgraded Broadcom from Buy to Hold. DA Davidson’s target is now among the lowest on Broadcom, implying slight downside in the stock.

Broadcom Stock Forecast Today12-Month Stock Price Forecast:
$504.93
37.00% Upside

Moderate Buy
Based on 34 Analyst Ratings

Current Price$368.56High Forecast$600.00Average Forecast$504.93Low Forecast$350.00Broadcom Stock Forecast Details

DA Davidson noted that Broadcom’s near-term guidance failed to meet high investor expectations. This comes as Broadcom’s revenue guidance for fiscal Q4 2026 was $34.8 billion, around $200 million below consensus estimates. This argument may also extend to Broadcom’s 2027 AI chip sales guidance of $115 billion, which increased from “over $100 billion.”

Morgan Stanley was among the analysts whose targets did not shift significantly in response to Broadcom’s results. The firm issued a very small 0.6% price target increase after the report, moving its forecast to $505 per share. Although analyst Joseph Moore called the results "impressive," he also noted concerns about Broadcom’s relationship with Alphabet NASDAQ: GOOGL.

During Broadcom’s earnings call, the company acknowledged that MediaTek OTCMKTS: MDTKF was also a partner in Alphabet’s tensor processing unit (TPU) program. While this admission shows that such rumors were true, it does not provide a clear understanding of how much share Broadcom will have in the program versus MediaTek.

Marvell Technology NASDAQ: MRVL also participates in Alphabet’s TPU ecosystem, although the same calculus applies here, with Marvell’s position arguably being even less clear than MediaTek’s. Notably, J.P. Morgan Chase analyst Harlan Sur believes Broadcom will remain Alphabet’s largest partner, keeping at least two-thirds share of the TPU program.

Analyst Support Keeps Broadcom’s Bull Case IntactIn the end, Broadcom maintained very strong support from Wall Street analysts, despite shares moving into the red after its report. Among 34 analyst ratings, Broadcom has received 30 Buys, four Holds, and no Sells, showing that the post-earnings skepticism has not meaningfully dented the broader bull case.

That support does not erase the near-term questions around guidance, supply constraints, or Alphabet’s TPU program. But it does show that most analysts still see Broadcom’s AI revenue ramp as powerful enough to keep the long-term bull case intact.

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Fayez Sarofim & Co raised its position in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 2,043.1% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,416,634 shares of the semiconductor manufacturer’s stock after buying an additional 1,350,533 shares during the quarter. Broadcom comprises about 1.3% of Fayez Sarofim & Co’s investment portfolio, making the stock its 24th largest holding. Fayez Sarofim & Co’s holdings in Broadcom were worth $535,133,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Cornerstone Advisors LLC purchased a new stake in shares of Broadcom in the second quarter valued at approximately $92,522,000. Bank of America Corp DE grew its stake in Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after acquiring an additional 894,564 shares during the period. Clear Harbor Asset Management LLC acquired a new stake in Broadcom in the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC increased its holdings in Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer’s stock worth $34,061,000 after acquiring an additional 62,050 shares in the last quarter. Finally, First Bank & Trust increased its holdings in Broadcom by 17.2% in the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer’s stock worth $3,968,000 after acquiring an additional 1,545 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Stock Performance NASDAQ:AVGO opened at $357.89 on Monday. The company’s 50-day moving average price is $383.57 and its 200-day moving average price is $377.59. 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 company has a market cap of $1.70 trillion, a P/E ratio of 45.71 and a beta of 1.44. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00.

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 firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the business posted $1.69 earnings per share. Broadcom’s quarterly revenue was up 85.5% on a year-over-year basis. On average, sell-side analysts forecast that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year. Broadcom Announces Dividend The business also recently announced 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. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom’s payout ratio is currently 33.21%.

Key Headlines Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders. Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth. Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle. Insider Buying and Selling In other Broadcom news, Director Gayla Delly sold 1,890 shares of the business’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 1,602 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the sale, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 over the last ninety days. 1.90% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades Several equities analysts have issued reports on AVGO shares. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Broadcom in a report on Monday, August 3rd. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a research report on Thursday. Citigroup reaffirmed a “buy” rating and issued a $515.00 price target (up from $500.00) on shares of Broadcom in a research note on Friday. JPMorgan Chase & Co. boosted their price objective on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Finally, Truist Financial reduced their target price on Broadcom from $550.00 to $520.00 and set a “buy” rating for the company in a report on Thursday. Thirty-one equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and an average target price of $500.60.

Check Out Our Latest Research Report on AVGO

Broadcom Company Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Coastal Bridge Advisors LLC lifted its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 8.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 19,028 shares of the semiconductor manufacturer’s stock after buying an additional 1,438 shares during the quarter. Coastal Bridge Advisors LLC’s holdings in Broadcom were worth $7,188,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also made changes to their positions in the company. State Street Corp boosted its position in shares of Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after acquiring an additional 5,040,801 shares during the period. Geode Capital Management LLC raised its stake in 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 purchasing an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares during the last quarter. Norges Bank bought a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. Finally, Bank of America Corp DE grew its position in Broadcom by 4.6% in 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 purchasing an additional 2,685,916 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Stock Down 0.0% NASDAQ:AVGO opened at $357.89 on Monday. The stock’s fifty day moving average price is $383.57 and its two-hundred day moving average price is $377.59. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. 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 company has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71 and a beta of 1.44.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business’s revenue for the quarter was up 85.5% on a year-over-year basis. During the same period last year, the firm earned $1.69 EPS. On average, analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current year. Broadcom Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given 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 payout ratio is currently 33.21%.

Analyst Upgrades and Downgrades Several equities research analysts recently weighed in on the stock. Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. The Goldman Sachs Group restated a “buy” rating on shares of Broadcom in a research note on Monday, August 3rd. Evercore set a $578.00 price target on Broadcom in a report on Thursday. DA Davidson set a $350.00 price objective on Broadcom and gave the stock a “neutral” rating in a research report on Friday. Finally, Oppenheimer restated an “outperform” rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Thirty-one analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $500.60.

Get Our Latest Analysis on Broadcom

Key Stories Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders. Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth. Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle. Insider Buying and Selling at Broadcom In related news, insider Mark Brazeal sold 25,000 shares of the 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 sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Justine Page sold 1,602 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is currently owned by insiders.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Nvidia CEO Jensen Huang says OpenAI’s Astra marks the arrival of artificial general intelligence, but for investors the message is about hardware.

Huang said Astra was trained on more than 100,000 Nvidia Grace Blackwell systems and that another 400,000 GPUs are coming online.

Whether Astra truly qualifies as AGI remains disputed, with researcher Gary Marcus arguing that Astra falls short of conventional benchmarks.

The investment takeaway is clear. If frontier AI systems perform more economically useful work, the infrastructure required to train and run them could keep expanding.

Nvidia stock remains the clearest compute winnerNvidia is the most direct beneficiary because Astra demonstrates how much frontier AI still depends on its hardware.

The company reported fiscal second-quarter revenue of $96.2 billion, up 106% from a year earlier, while Data Center revenue reached $89 billion, up 117%. Nvidia guided for $108 billion of revenue in the current quarter.

TD Cowen analyst Joshua Buchalter described the shares as “materially undervalued” after the results, according to MarketWatch.

He argued that customer demand could support revenue approaching twice current levels if supply constraints were removed.

That backdrop makes Astra relevant beyond another model launch.

OpenAI has shown that training its newest system required a six-figure Nvidia deployment, while Huang’s comments suggest another expansion is planned.

Nvidia’s Vera Rubin generation is moving into production, extending the hardware roadmap beyond Blackwell.

The next AI buildout will not run on Nvidia GPUs alone.

Hyperscalers and AI labs are developing custom accelerators to reduce inference costs and optimise specific workloads. Broadcom has become a beneficiary of that shift.

Its third-quarter AI semiconductor revenue jumped 221% to $16.7 billion, with management expecting $21.7 billion in the fourth quarter.

Broadcom is also working with OpenAI on Jalapeño, its first custom intelligence processor, and future generations.

Macquarie analyst Arthur Lai upgraded Broadcom to Outperform and raised his target to $490 after the results.

Lai believes Broadcom “dominates the rapid-growth AI ASIC market,” supported by its custom-silicon and connectivity advantages.

OpenAI is expected to become Broadcom’s second-largest XPU customer in fiscal 2028, when management sees more than five gigawatts of OpenAI accelerators being deployed.

That makes Broadcom another way to play Astra: smarter models can increase demand for specialised compute and the networking connecting AI clusters.

Oracle takes the thesis beyond chips and into data-centre capacity.

The company is a major cloud partner to OpenAI, and its shares rose following Astra’s release ahead of September 10 earnings.

Bank of America analyst Tal Liani maintained a Buy rating and $240 target. TipRanks said BofA expects Oracle infrastructure-as-a-service revenue to jump 116% year on year as one gigawatt of new data-centre capacity comes online.

Oracle’s $638 billion backlog gives the company visibility, but the opportunity is expensive. BofA expects around $92.5 billion of fiscal-year capital expenditure, which could pressure free cash flow.

That makes Oracle the riskiest of the three. AI demand can produce extraordinary cloud growth, but Oracle must finance the physical infrastructure before much of that revenue arrives.

L2 Asset Management LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 26,729 shares of the semiconductor manufacturer’s stock, valued at approximately $10,097,000. Broadcom comprises approximately 1.0% of L2 Asset Management LLC’s investment portfolio, making the stock its 18th biggest holding.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in AVGO. State Street Corp grew its stake in Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares in the last quarter. Norges Bank bought a new position in shares of Broadcom during the fourth quarter valued at approximately $24,252,196,000. Finally, Bank of America Corp DE raised its stake in Broadcom by 1.5% in 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 buying an additional 894,564 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes A number of analysts have weighed in on AVGO shares. Susquehanna restated a “positive” rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Benchmark upped their price objective on Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Citigroup reiterated a “buy” rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a research note on Friday. BMO Capital Markets increased their price target on shares of Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a report on Tuesday, July 7th. Thirty-one equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $500.60.

Check Out Our Latest Stock Report on AVGO Trending Headlines about Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders. Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth. Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle. Insider Transactions at Broadcom In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction on Friday, July 10th. The stock was 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 in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 1,602 shares of the company’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company’s stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 over the last three months. 1.90% of the stock is owned by insiders.

Broadcom Stock Performance NASDAQ AVGO opened at $357.89 on Friday. The firm has a market capitalization of $1.70 trillion, a P/E ratio of 45.71, a PEG ratio of 0.68 and a beta of 1.44. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The stock has a 50-day simple moving average of $383.57 and a two-hundred day simple moving average of $377.23. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.01 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) 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 firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the prior year, the firm posted $1.69 earnings per share. The firm’s quarterly revenue was up 85.5% compared to the same quarter last year. On average, equities analysts forecast that Broadcom Inc. will post 10.25 earnings per share for the current year.

Broadcom Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s payout ratio is currently 43.33%.

Broadcom Company Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Cullen Capital Management LLC purchased a new position in Broadcom Inc. (NASDAQ:AVGO – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 532,119 shares of the semiconductor manufacturer’s stock, valued at approximately $201,008,000. Broadcom comprises about 2.0% of Cullen Capital Management LLC’s portfolio, making the stock its 20th largest position.

Other institutional investors and hedge funds have also bought and sold shares of the company. Fullerton Advisors LLC boosted its holdings in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after acquiring an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its holdings in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after purchasing an additional 25 shares in the last quarter. RFG Holdings Inc. lifted its position in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after purchasing an additional 26 shares during the period. Yukon Wealth Management Inc. lifted its position in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares during the period. Finally, NerdWallet Wealth Partners LLC boosted its stake in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after purchasing an additional 27 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Price Performance NASDAQ AVGO opened at $357.89 on Friday. The business’s fifty day moving average is $383.57 and its 200 day moving average is $377.23. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.01 and a current ratio of 2.50. The company has a market capitalization of $1.70 trillion, a PE ratio of 45.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the prior year, the business posted $1.69 earnings per share. The business’s quarterly revenue was up 85.5% on a year-over-year basis. Sell-side analysts predict that Broadcom Inc. will post 10.25 earnings per share for the current year. Broadcom Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be given 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 is Monday, September 21st. Broadcom’s dividend payout ratio is presently 43.33%.

Insider Activity In other Broadcom news, Director Harry You purchased 1,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is currently owned by company insiders.

Broadcom News Summary Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders. Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth. Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle. Wall Street Analysts Forecast Growth AVGO has been the subject of several research analyst reports. DA Davidson set a $350.00 price objective on Broadcom and gave the company a “neutral” rating in a research report on Friday. Zacks Research lowered Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Citigroup reaffirmed a “buy” rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a report on Friday. Royal Bank Of Canada started coverage on Broadcom in a research note on Thursday. They issued an “outperform” rating for the company. Finally, Fox Advisors upgraded shares of Broadcom to an “outperform” rating in a research report on Thursday. Thirty-one analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $500.60.

Check Out Our Latest Report on Broadcom

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

Featured Articles Five stocks we like better than Broadcom Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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With its artificial intelligence (AI) revenue surging and its stock recently stuck in the mud, Broadcom (AVGO +0.21%) is starting to look like one of the most attractive stocks in the AI infrastructure space. The designer, developer, manufacturer, and global supplier of semiconductor products is poised to see explosive growth in the coming years, with AI revenue projected to double in fiscal 2027 to $115 billion, up from earlier guidance of $100 billion, and then double again in fiscal 2028 to $230 billion.

Let's take a closer look at Broadcom's recent results and why the semiconductor stock looks like a great buy at current levels.

Image source: The Motley Fool.

Custom chips lead the way Broadcom saw its AI semiconductor revenue skyrocket 221% year over year in fiscal Q3 ended Aug. 2. During the quarter, it delivered mass shipments of Ironwood TPU v7 chips to both Alphabet and Anthropic and began shipping Alphabet's next-generation Tensor Processing Units (TPUs) v8i to the company. Broadcom said it is handling Alphabet's TPU 8i version for inference, while MediaTek is dealing with the v8t version for training. Notably, it brought the 8i version to market more quickly than MediaTek, despite a later start.

The real story, though, was the company's outlook. The $230 billion AI revenue estimate for fiscal 2028 was well above the $180 billion estimate previously projected by Citigroup analysts. Meanwhile, it said its AI networking business would grow just as quickly as its custom chip business.

The company laid out where this revenue would come from, saying Anthropic would become its largest customer next fiscal year, with the frontier lab planning to deploy 5 gigawatts of TPU version 8i in fiscal 2027 and then 10 gigawatts in fiscal 2028. Alphabet will continue to be one of its most important customers, with it generating tens of billions of dollars in TPU revenue annually in the coming years.

OpenAI, meanwhile, is projected to become its second-largest chip customer, with 5 gigawatts of its new Jalapeño chip and its successor expected to be deployed in 2028. It will also deliver Meta Platforms 3 gigawatts of its custom MTIA chips through 2028, covering three generations.

Broadcom noted that its fiscal 2027 AI revenue could be higher, with demand currently above its $115 billion revenue projection, but that it needs to improve supply. For 2028, though, it has secured supply to meet its outlook. Given its huge AI revenue growth over the next two years, Broadcom now expects to generate adjusted EPS of over $30 in fiscal 2028.

Turning to the company's fiscal Q3 results, Broadcom's overall revenue surged 86% year over year to $29.6 billion, while adjusted earnings per share (EPS) soared 96% to $3.32. The results topped analyst expectations, with adjusted EPS of $3.24 and revenue of $29.36 billion, as compiled by LSEG.

Total semiconductor solutions revenue skyrocketed by 127% year over year to $20.8 billion. Its non-AI chip revenue growth remains sluggish, up just 5% to $4.2 billion in the quarter. Infrastructure software revenue, meanwhile, climbed by 29% to $8.8 billion.

Overall gross margin came in at 75%, down 210 basis points, as semiconductor revenue makes up a larger share of overall revenue. Software gross margin was 84%, compared with 76% for its semiconductor segment.

Looking ahead, Broadcom forecasts fiscal Q4 revenue to grow by 93% to $34.8 billion, with AI revenue surging 236% to $21.6 billion. Gross margin is expected to be 73%.

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Moneyball Superscore

90/100

Today's Change

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Broadcom is seeing surging revenue while, importantly, also diversifying its AI chip customer base. Despite that, the stock is now trading at a forward price-to-earnings (P/E) ratio of 11.5 times the fiscal 2028 guidance it just delivered. That's just incredibly cheap for what is becoming one of the best growth stocks in the AI infrastructure space.

As such, I'd be a buyer of the stock on this dip.