Track market-moving stories before they get noisy

In this video, I will cover Broadcom (AVGO -1.70%) and Snowflake's latest earnings reports, new AI models from Meta and Google, and recent comments from Sam Altman on data center water use. Watch the short video to learn more, consider subscribing, and click the special offer link below.

*Stock prices used were from the trading day of Sep. 2, 2026. The video was published on Sep. 3, 2026.

Neil Rozenbaum has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Snowflake. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Ropa se vrátila nad magickou hranici 100 dolarů za barel, výnosy amerických dluhopisů rostou a do toho přichází nové IPO a konkurence o kapitál sílí. Makléř Patria Finance Martin Uher v novém díle Trader's Talk popisuje, kde podle něj mohou investoři čekat první varovné signály, a přidává konkrétní tipy z USA a Evropy.

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Patria Podcasts · Ropa nad 100 dolary, ČEZ útočí na rekord a kde hledat příležitosti" target="_blank" style="color: #cccccc; text-decoration: none;">Traders Talk: Ropa nad 100 dolary, ČEZ útočí na rekord a kde hledat příležitosti

Další videorozhovory Patria.cz naleznete na Youtube kanálu Patria.cz.

Obsah:
00:23 Ropa nad 100 dolary
03:48 Neustále rostoucí výnosy dluhopisů
08:31 Investiční tipy v USA a Evropě
10:33 ČEZ se blíží rekordu, CSG padá

Ropa nad 100 dolary je hlavně geopolitický signál

Růst ceny ropy nad 100 dolarů za barel je podle makléře Martina Uhera především důsledkem geopolitiky. Samotná hranice 100 dolarů má podle něj spíš psychologický a mediální význam než zásadní tržní relevanci. „Je to zajímavé hlavně mediálně. Pro ten trh je to číslo jako každé jiné,“ říká Uher. Pro investory je proto podle něj důležitější sledovat spíše trend než samotné překročení kulaté hranice.

Současně Spojené státy podle něj změnily strategii a ve válce s Íránem se zaměřují mimo jiné na ropné tankery, sklady a terminály. Takový postup snižuje množství ropy dostupné pro trh, a zároveň představuje způsob, jak omezit riziko zásahu jiných cílů.

Dluhopisy zatím nevarují, aukce ale budou důležité

Druhým velkým tématem jsou rostoucí výnosy dluhopisů. U desetiletých amerických státních dluhopisů zatím Uher nevidí důvod k panice. Úrovně, ke kterým se výnosy nyní dostávají, trhy podle něj zažily už v minulých letech. U třicetiletých dluhopisů je situace o něco napjatější, stále však nejde o signál bezprostředního problému.

Mnohem důležitější bude podle něj sledovat samotné aukce státních dluhopisů. Pokud by se začaly objevovat výrazné rozdíly mezi cenami na trhu a výsledky aukcí nebo by byl problém nové emise vůbec upsat, mohlo by jít o první skutečné varování. „Potom si myslím, že bychom nějaké první náznaky, ať už menší nebo větší paniky, mohli sledovat,“ říká Uher. K tlaku na dluhopisový trh se navíc přidávají nové emise korporátních dluhopisů a chystající se obří IPO.

Fed může sazby zvýšit už brzy

Vývoj dluhopisových výnosů souvisí také s očekáváním kolem americké centrální banky. Trh podle Uhera aktuálně přisuzuje nejbližšímu zasedání více než padesátiprocentní pravděpodobnost zvýšení sazeb, konkrétně kolem 60 procent. „Myslím, že jisté je, že buď teď, nebo na tom příštím zasedání zvýšení sazeb uvidíme,“ říká. Nejistotu podle něj zvyšuje také nový předseda Fedu, který není příliš sdílný.

Broadcom po skvělém výhledu propadl

Na americkém trhu Uher zůstává pozitivní především na Broadcom. Společnost podle něj představila mimořádně silný výhled, přesto akcie bezprostředně po výsledcích výrazně klesly. „Broadcom překvapil naprosto brutálním výhledem. A nás zase potom překvapila tržní reakce, která byla negativní,“ říká Uher.

Uher připouští, že největší příležitost už možná pominula, ale Broadcom podle něj zůstává atraktivní kombinací sázky na umělou inteligenci a rozumné valuace. „Akcie se mi líbí. Je to sázka na umělou inteligenci, valuačně mi Broadcom smysl dává,“ říká.

V Evropě láká Aixtron

Další zajímavou příležitost vidí Uher v Evropě. Německý AIXTRON už delší dobu patří na seznam Investičních tipů Patrie, ale po poklesu z rekordních úrovní podle něj znovu nabízí zajímavější vstup. Firma se zaměřuje na technologii nanášení velmi jemných a precizních vrstev při výrobě polovodičů.

ČEZ útočí na maxima, CSG naopak vyklesal na hladinu podpory

Na domácím trhu Uhera překvapil ČEZ, který se přiblížil historickým maximům z roku 2007. Podle něj je zajímavé především to, že o titul mají stále zájem spekulanti i investoři.

Opačný příběh nabízí CSG. Akcie nedokázaly udržet úrovně kolem 20 eur a vrátily se do pásma 16–17 eur. Uher ale současný pokles nevnímá jako důvod k panice. Technicky se titul podle něj nachází na supportu a při dlouhodobém pohledu může jít o zajímavou příležitost. „Pokud chci CSG hrát dlouhodobě, tak si mohu opět přikoupit,“ říká.

Zároveň však doporučuje výraznou opatrnost u krátkodobých spekulací. Klíčem bude podle něj především obnovení důvěry investorů a další výsledky společnosti. „U CSG za mě je to rozhodně běh na dlouhou trať a krátkodobě nebo spekulativně bych se do toho stále nepouštěl,“ uzavírá Uher.

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 (AVGO +2.98%) hasn't had the best year. It's only up by 3% so far in 2026, while the S&P 500 has gained 13%. However, on a business level, Broadcom had a tremendous year, and it recently implied that its next two years will be even better.

This forecast has resulted in a compelling buying opportunity for long-term investors.

Image source: Getty Images.

Broadcom anticipates AI revenue doubling annually for the next two years Broadcom has established itself as the leading designer of application-specific integrated circuits (ASICs). These custom-made chips are built to offer a more cost-efficient alternative for handling narrow types of AI workloads, and they have won over many big tech companies. That has given Broadcom impressive revenue visibility for that business unit for multiple years.

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For its fiscal 2026 second quarter, which ended May 3, the company's revenue grew 48% year over year, but the AI semiconductor segment's top line more than doubled. However, that wasn't the biggest news. Broadcom told investors to expect AI semiconductor revenue to more than double in its fiscal 2027, and then to double yet again in fiscal 2028.

This growth further highlights Broadcom's commanding position in the ASIC chip space, and confirms that artificial intelligence infrastructure remains in high demand. The growth of the company's AI semiconductor business has also come with higher profit margins. Net income jumped by 88% year over year in fiscal Q2, comfortably outpacing overall revenue growth.

Previously, the company told investors to expect revenue of $22 billion in its fiscal 2026 second quarter, but it actually delivered $22.2 billion in sales. It has become more common for chipmakers to beat and raise guidance, and Broadcom has been following that pattern. With that in mind, the path ahead for its AI semiconductor business may be even better than the back-to-back years of doubling revenue it's forecasting.

The stock hasn't budged much despite the seismic fundamental changes Broadcom's guidance implies that revenue will accelerate meaningfully in the years ahead. AI semiconductor revenue now makes up more than 60% of Broadcom's total sales. Each time this segment doubles (significantly outpacing the growth of the rest of the business), it will result in AI chips producing a larger percentage of total revenue. That will give it an even stronger influence on future results.

At the same time, Broadcom continues to improve its profit margins. Higher demand for AI products will give the company more pricing power. It already enjoys net profit margins above 40%, but those margins can widen as AI semiconductor revenue surges.

Yet this outcome hasn't been priced into the stock. The mismatch has resulted in a compelling 19 forward P/E ratio, which is a lower valuation by that metric than most companies in the S&P 500. As Broadcom releases additional earnings reports that validate its ambitious targets for fiscal 2027 and fiscal 2028, more investors may pile into the stock.

Livforsakringsbolaget Skandia Omsesidigt decreased its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 0.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 287,638 shares of the semiconductor manufacturer’s stock after selling 1,880 shares during the period. Broadcom makes up 3.5% of Livforsakringsbolaget Skandia Omsesidigt’s holdings, making the stock its 7th biggest holding. Livforsakringsbolaget Skandia Omsesidigt’s holdings in Broadcom were worth $108,451,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the company. Brighton Jones LLC lifted its stake 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 purchasing an additional 5,322 shares during the period. Revolve Wealth Partners LLC grew its stake in Broadcom by 10.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock worth $1,854,000 after purchasing an additional 756 shares during the period. United Bank grew its stake in Broadcom by 76.5% during the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock worth $392,000 after purchasing an additional 1,014 shares during the period. Sivia Capital Partners LLC increased 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 worth $3,499,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC lifted its stake 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 buying an additional 378 shares during the period. Institutional investors own 76.43% of the company’s stock.

Broadcom Stock Performance Shares of Broadcom stock opened at $357.89 on Tuesday. 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 Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The stock has a 50 day moving average price of $383.28 and a two-hundred day moving average price of $377.77. The stock has a market capitalization of $1.70 trillion, a PE ratio of 45.71 and a beta of 1.44.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings data 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 return on equity of 48.33% and a net margin of 42.94%.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 previous year, the company posted $1.69 earnings per share. The company’s quarterly revenue was up 85.5% on a year-over-year basis. As a group, equities analysts anticipate that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year. Broadcom Announces Dividend 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 dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom’s payout ratio is 33.21%.

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

Positive Sentiment: Broadcom raised its fiscal 2027 AI-semiconductor revenue forecast to approximately $115 billion, up from more than $100 billion previously, and reportedly sees potential for about $230 billion in fiscal 2028. The outlook reflects sustained spending by hyperscalers on custom accelerators and AI infrastructure. Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Just Nvidia GPUs Positive Sentiment: AI semiconductor revenue reportedly jumped 221% to $16.7 billion in the latest quarter. Broadcom is benefiting as large technology companies seek alternatives or complements to Nvidia GPUs, particularly for inference workloads, custom silicon and high-speed data-center networking. Broadcom Inc. Stock: Rises as Custom AI Silicon Fuels Massive Growth Outlook Positive Sentiment: Analysts and financial commentators increasingly characterize Broadcom as a major beneficiary of the expansion of customized AI infrastructure, alongside its strong free-cash-flow generation and AI networking exposure. The company’s custom-chip strategy could also pressure competitors such as AMD in hyperscaler accounts. Broadcom stock: Why the AI chipmaker’s growth story is gaining steam Neutral Sentiment: High-volume purchases of Broadcom call options indicate speculative bullish interest, but options activity does not guarantee sustained buying in the shares. Stock Traders Purchase High Volume of Broadcom Call Options Negative Sentiment: Investors remain concerned about Broadcom’s premium valuation, possible margin pressure, supply constraints and dependence on a limited number of large customers. These risks help explain why the stock has declined over the past three months despite its strong AI growth outlook. Broadcom Drops 10% in 3 Months: Buy, Sell or Hold the Stock? Analyst Upgrades and Downgrades A number of equities analysts have issued reports on the company. The Goldman Sachs Group restated a “buy” rating on shares of Broadcom in a report on Monday, August 3rd. BMO Capital Markets lifted their price objective 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. DA Davidson set a $350.00 target price on shares of Broadcom and gave the company a “neutral” rating in a research report on Friday. Evercore set a $578.00 target price on shares of Broadcom in a research note on Thursday. Finally, Benchmark lifted their price target on shares of Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Thirty research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and a consensus price target of $504.93.

View Our Latest Stock Analysis on Broadcom

Insider Buying and Selling at Broadcom In other Broadcom news, Director Harry L. You acquired 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the acquisition, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Justine Page sold 1,602 shares of the firm’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 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. Company insiders own 1.90% of the company’s stock.

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.

Read More Five stocks we like better than Broadcom 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane

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Advanced Micro Devices (AMD +5.90%) has had a great year, rising more than 120% so far. However, it has gotten a bit hot. AMD's valuation has soared, and it doesn't quite have the same catalysts coming up in 2027 as another top AI hardware stock: Broadcom (AVGO +2.98%).

Broadcom is a much better deal in my opinion, and will lead it to new heights over the next year and vastly outperform AMD over the coming year.

Image source: Getty Images.

Both are exposed to AI AMD has clear exposure to the AI build-out via its data center division, which supplies GPUs and other computing components to those in the space. This part of AMD's business is doing great and saw 107% year-over-year growth to $6.7 billion in the second quarter. However, it has nothing on Broadcom.

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Broadcom does a lot of different things as a company, but what investors are most focused on is its custom AI chips. While AMD makes GPUs, which are great for all sorts of workload types, some of that capability gets wasted when the device is only used to process one type of workload during its service life.

To cut costs, AI hyperscalers are starting to partner with companies that have computing unit design expertise, and Broadcom is one of them. Broadcom and its clients collaborate and design a computing chip tailored around the workload it will see, which can result in higher performance at a lower cost. With AI hyperscalers looking to maximize computing power for every dollar they spend, this is a no-brainer decision.

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While there will always be the need for general-purpose GPUs, custom AI chips are starting to become more popular, and I suspect this trend will persist throughout the rest of the AI buildout. This trend is already becoming apparent in Broadcom's results, and it could easily propel its stock to outperform AMD over the next few years.

During its fiscal 2027's third quarter (ended August 2), AI semiconductor revenue totaled $16.7 billion, growing at a 221% year over year pace. That's an incredible growth rate, and it makes Broadcom's AI division nearly three times as large as AMD's and growing at a faster pace. But it's not done there either.

Broadcom has long projected next year's AI semiconductor revenue to total $100 billion, but it increased its guidance to $115 billion during this quarter. In 2028, they expect to double again to $230 billion. That's an incredible outlook, and that business will make AMD's look like a drop of water in a bucket.

AMD doesn't have any growth projections like that, and I think it underscores that Broadcom is a far greater investment than AMD, but that's not the only reason why it's a better buy.

Broadcom is far cheaper than AMD After this year's run-up, AMD's stock price has gotten expensive. Broadcom's valuation isn't the cheapest either, but that doesn't factor in the major growth it expects during fiscal 2027. As a result, I think valuing the stock based on next year's earnings projections makes the most sense, and from this perspective, Broadcom is far cheaper.

AMD PE Ratio (Forward 1y) data by YCharts

Broadcom is clearly doing better as a business than AMD is, yet it's valued at nearly half the price. This mismatch doesn't make a lot of sense, and it either informs investors that AMD is overvalued or Broadcom is undervalued. I think both are true, and that only leaves one logical course of action: Sell AMD stock to buy Broadcom shares. This move makes a ton of sense, and I think it will pay off big time for investors over the next few years.

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.

Cathie Wood's Ark Invest hasn't had a great year so far. Of the firm's seven exchange-traded funds (ETFs), only the Ark Genomic Revolution ETF has outperformed the market. The flagship Ark Innovation ETF (ARKK -0.16%) is slightly trailing the S&P 500's 13% year-to-date gain, up just 11.8% at the time of writing.

Still, Ark founder and Chief Executive Officer Cathie Wood continues to hold stakes in companies positioned to ride the artificial intelligence (AI) boom. In late August, several Ark ETFs added shares of Nvidia (NVDA -2.01%), Cerebras Systems (CBRS -4.89%), and Broadcom (AVGO +2.98%).

Let's explore why Wood might have bought more shares.

Ark Invest CEO Cathie Wood. Image source: Getty Images.

Nvidia Nvidia remains Ark Invest's largest chip-stock holding across its ETFs. On Aug. 28, Ark Invest bought roughly $55 million worth of Nvidia across five funds.

Ark Invest's research projects spending on AI to triple from $500 billion in 2025 to roughly $1.5 trillion by 2030. That backdrop favors the graphics processing unit (GPU) leader. Nvidia just reported an impressive 106% year-over-year increase in revenue, reaching $96 billion. Management is guiding for 70% growth in fiscal 2028 (ending in January).

Competition is heating up in AI data centers. Google's Tensor Processing Units (TPUs) and Amazon's Trainium can rival Nvidia's performance for certain workloads. These custom chips are expected to gain share against Nvidia's accelerated GPUs in the coming years, but Wood appears to like the stock's upside if GPU demand remains strong.

Nvidia trades at just 15 times next year's consensus earnings estimate, while Ark expects Nvidia's GPUs to still make up the majority of the AI server market by 2030. Nvidia is widening its customer base beyond hyperscalers like Google to AI clouds, industrial, and enterprise buyers. Revenue from these non-hyperscaler customers surged 138% year over year to $40 billion last quarter. That diversification could help sustain growth even if hyperscalers gain share with in-house chips.

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Cerebras Systems On Aug. 26, Ark Invest purchased roughly $26 million of Cerebras Systems stock across two ETFs. It's still a small position, making up about 2.8% of the Ark Innovation and Ark Next Generation Internet ETF.

The move aligns with Ark's view that emerging start-ups will capture a growing share of the market from incumbent chip suppliers. Cerebras is known for its wafer-scale engine, a computing system designed to deliver high tokens-per-second for advanced AI models. Revenue grew 74% year over year in the second quarter to $180 million.

The risk for Cerebras is that it still lacks scale in the AI market. Nvidia is growing faster at a much larger revenue size. A relative lack of resources could pose challenges for Cerebras in ramping new generations of systems on schedule.

At 68 times sales, the stock doesn't look like a bargain, but it's trading 45% off its previous high. Wood seems to be broadening Ark's bets across multiple AI infrastructure suppliers, which can help reduce the risk of a single stock underperforming expectations. Cerebras says its next-generation CS-4 platform delivers up to 30 times faster AI inference performance than GPU systems. If demand broadens beyond GPUs and revenue growth remains robust, Cerebras could be a winner.

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Broadcom On Aug. 26 and Aug. 28, Ark bought roughly $41 million of Broadcom across three Ark ETFs. It's a relatively small holding, at about 1.7% of the flagship ARK Innovation fund.

Broadcom fits Ark's thesis that custom AI chips will continue to gain market share through 2030. Broadcom's specialized chips, or XPUs, are in high demand. It is a top supplier for Google, Anthropic, and others, with AI semiconductor revenue surging over 200% year over year to $16 billion in the most recent quarter.

Beyond competition, the shared risk for Nvidia, Cerebras, and Broadcom is continued growth in AI infrastructure spending. If hyperscalers slow or pause spending, these stocks would likely sell-off.

Wood, however, appears to view Broadcom's valuation as offering attractive upside if AI spending remains strong. Management is targeting more than $30 in earnings per share by fiscal 2028. Yet the stock is trading at about 11 times that estimate, which looks like a bargain.

Broadcom Today

$368.56 +10.67 (+2.98%)

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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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Broadcom Inc. delivered Q3 earnings results last week. The market shrugged, but the numbers show a rapidly growing AI behemoth. FY2028 AI growth and earnings projections make AVGO stock a long-term winner.

Nvidia: Sustained Global Revenue ExpansionNvidia (NVDA -2.01%) primarily generates revenue by designing advanced graphics processors, accelerating computational networking solutions, and providing extensive software ecosystems for personal computing, enterprise workstations, automated automotive systems, and massive data centers globally.

While entering a definitive agreement to acquire Hugging Face, advancing new supercomputing architectures, and dealing with fresh regulatory inquiries regarding its business practices, it reported an operating margin of 66% for the quarter ended July 26, 2026.

Broadcom: Steady Digital Revenue ProgressBroadcom (AVGO +2.98%) primarily generates revenue by developing an extensive array of digital and analog semiconductor components, while also supplying critical infrastructure software architectures to telecommunications, data center, and corporate networking clients worldwide.

It expanded its enterprise software footprint through a long-term strategic cloud infrastructure agreement with Standard Chartered, executed a planned executive leadership transition with its Chief Financial Officer, and reported an operating margin of 54% for the quarter ended Aug. 2, 2026.

Why Revenue Matters for InvestorsRevenue helps everyday investors understand whether a business is successfully expanding its overall sales volume over time before accounting for any subsequent operational expenses, internal overhead costs, or corporate taxes. This metric helps investors measure a company's overall size, market footprint, and long-term trajectory.

Quarterly Revenue Trends for Nvidia and BroadcomCalendar quarterNvidia RevenueBroadcom RevenueQ3 2024$35.1 billion (quarter ended Oct. 27, 2024)$14.1 billion (quarter ended Nov. 3, 2024)Q4 2024$39.3 billion (quarter ended Jan. 26, 2025)$14.9 billion (quarter ended Feb. 2, 2025)Q1 2025$44.1 billion (quarter ended April 27, 2025)$15.0 billion (quarter ended May 4, 2025)Q2 2025$46.7 billion (quarter ended July 27, 2025)$16.0 billion (quarter ended Aug. 3, 2025)Q3 2025$57.0 billion (quarter ended Oct. 26, 2025)$18.0 billion (quarter ended Nov. 2, 2025)Q4 2025$68.1 billion (quarter ended Jan. 25, 2026)$19.3 billion (quarter ended Feb. 1, 2026)Q1 2026$81.6 billion (quarter ended April 26, 2026)$22.2 billion (quarter ended May 3, 2026)Q2 2026$96.2 billion (quarter ended July 26, 2026)$29.6 billion (quarter ended Aug. 2, 2026)Data source: Company filings. Data as of Sept. 8, 2026.

Foolish TakeThe revenue trends for Nvidia and Broadcom reveal both are experiencing accelerated sales growth over time. This expansion is happening on a quarterly basis, demonstrating the unusually strong demand for the solutions offered by these two semiconductor giants.

Both anticipate this trend to continue, thanks to the artificial intelligence boom. Broadcom's sales of $29.6 billion in its fiscal third quarter, ended Aug. 2, was an impressive 86% year-over-year increase, but the company forecasted revenue growth to accelerate to 93% year over year in its fiscal Q4, hitting $34.8 billion.

Nvidia expects to increase sales from $96.2 billion in its fiscal Q2, ended July 26, to about $108 billion in Q3. In fact, the AI chip leader projected 70% year-over-year sales growth in its next fiscal year, and noted this would be higher if not for supply constraints.

These revenue trajectories show no slowdown in AI spending. The semiconductor industry is cyclical, and usually enters a downturn sooner or later. Nvidia may be expanding its role in the AI sector to bolster against this with its recent acquisition of Hugging Face, which deepens its platform reach across the entire artificial intelligence ecosystem.

Broadcom Inc. (AVGO) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

Broadcom expects AI semiconductor revenue to reach $115 billion in FY2027 and $230 billion in FY2028, supported by secured supply. Six XPU customers are planning roughly 30 GW of deployments, shifting the primary uncertainty from AI demand toward infrastructure execution. Anthropic could add 5 GW in 2027 and 10 GW in 2028, while OpenAI targets more than 5 GW.

To gain some exposure to the booming AI market, many investors turn to Nvidia (NVDA +0.84%), the world's largest producer of discrete GPUs for data centers. That's still a smart move, since Nvidia sells the best picks and shovels for training AI algorithms.

Most of the world's top AI companies use Nvidia's data center GPUs, and it locks in those customers with its proprietary software and services. From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect its revenue and EPS to both grow at CAGRs of 59%. Those are remarkable growth rates for a stock that trades at 23 times next year's earnings.

Image source: Getty Images.

So if you're bullish on the AI market's long-term growth, it's still a good idea to buy Nvidia. But if Nvidia is your only play on the AI market, then you're missing out on the expansion of the AI inference market. Let's see why the inference market is becoming just as important as Nvidia's training market -- and why Broadcom (AVGO +0.21%) is a great play on that paradigm shift.

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AI training vs. AI inference Nvidia's data center GPUs are used to train large language models (LLMs). But that data is useless without inference, or the computing process that allows AI applications to access all that information. To help hyperscalers bridge that gap, Broadcom (AVGO +0.21%) develops application-specific integrated circuits (ASICs) that can be customized for inference tasks.

At scale, Broadcom's AI accelerators can process inference tasks faster and more cost-efficiently than Nvidia's stand-alone GPUs. That's why leading AI companies -- including Meta, Alphabet's Google, OpenAI, and Anthropic -- all use Broadcom's chips to accelerate their AI applications.

Why Broadcom is another must-own AI stock In fiscal 2025 (which ended last November), Broadcom's sales of AI chips soared 65% to $20 billion and accounted for 31% of its top line. By fiscal 2027, it expects its AI chip sales to rise nearly sixfold to $115 billion -- about two-thirds of its projected $173.5 billion in revenue.

From fiscal 2025 to fiscal 2028, analysts expect Broadcom's revenue and EPS to grow at CAGRs of 62% and 77%, respectively. Yet it trades at just 22 times next year's earnings. Therefore, Broadcom is growing faster than Nvidia but still looks fundamentally cheaper.

Nvidia has been integrating more inference features into its latest GPUs, but it will remain more closely associated with the AI training market for the foreseeable future. So if you want more exposure to the growing market for custom inference chips, you should also invest in Broadcom.

Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

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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Corient Private Wealth LP boosted its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 206.4% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,221,179 shares of the semiconductor manufacturer’s stock after buying an additional 7,559,285 shares during the period. Broadcom makes up about 3.2% of Corient Private Wealth LP’s holdings, making the stock its 4th biggest position. Corient Private Wealth LP owned approximately 0.24% of Broadcom worth $4,238,800,000 at the end of the most recent reporting period.

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

Analyst Upgrades and Downgrades A number of research analysts have commented on AVGO shares. Wall Street Zen cut Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Weiss Ratings cut shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 30th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. JPMorgan Chase & Co. lifted their price target on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Finally, Susquehanna restated a “positive” rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $500.60.

View Our Latest Research Report on Broadcom Broadcom News Roundup 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 related news, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction that occurred 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 completion of the sale, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry You acquired 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares of the company’s stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 61,644 shares of company stock valued at $24,016,214 over the last 90 days. Company insiders own 1.90% of the company’s stock.

Broadcom Price Performance Shares of Broadcom stock opened at $357.89 on Monday. The stock has a market cap of $1.70 trillion, a PE ratio of 45.71 and a beta of 1.44. Broadcom Inc. has a 52 week low of $289.96 and a 52 week 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. The company’s 50-day moving average price is $383.57 and its two-hundred day moving average price is $377.59.

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 (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the prior year, the company earned $1.69 earnings per share. The firm’s revenue was up 85.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement The business also recently declared 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%.

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.

Read More Five stocks we like better than Broadcom AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains 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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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.

Featured Articles Five stocks we like better than Broadcom AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains 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).

Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.

Harvey Capital Management Inc. bought a new stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 1,530 shares of the semiconductor manufacturer’s stock, valued at approximately $578,000.

Other hedge funds have also recently added to or reduced their stakes in the company. N10 Assets LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $7,888,000. Coastal Bridge Advisors LLC lifted its position in Broadcom by 8.2% during the 2nd quarter. Coastal Bridge Advisors LLC now owns 19,028 shares of the semiconductor manufacturer’s stock worth $7,188,000 after acquiring an additional 1,438 shares during the period. Triton Financial Group Inc acquired a new stake in Broadcom during the 2nd quarter worth approximately $2,835,000. Stonehage Fleming Financial Services Holdings Ltd grew its stake in shares of Broadcom by 14.8% in the 2nd quarter. Stonehage Fleming Financial Services Holdings Ltd now owns 610,705 shares of the semiconductor manufacturer’s stock valued at $230,694,000 after purchasing an additional 78,556 shares during the last quarter. Finally, Jacobs Equity LLC grew its stake in shares of Broadcom by 81.4% in the 2nd quarter. Jacobs Equity LLC now owns 2,510 shares of the semiconductor manufacturer’s stock valued at $948,000 after purchasing an additional 1,126 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Insiders Place Their Bets In other Broadcom news, 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 value of $598,923.72. Following the transaction, the director owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry You bought 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director directly owned 38,466 shares of the company’s stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, 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 Analysts Forecast Growth Several equities research analysts recently weighed in on AVGO shares. Benchmark increased their price target on Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. The Goldman Sachs Group reissued a “buy” rating on shares of Broadcom in a research note on Monday, August 3rd. DA Davidson set a $350.00 price target on shares of Broadcom and gave the stock a “neutral” rating in a research note on Friday. Wall Street Zen cut shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Finally, Royal Bank Of Canada assumed coverage on shares of Broadcom in a research report on Thursday. They issued an “outperform” rating for the company. Thirty-one investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average price target of $500.60. Get Our Latest Stock Analysis on AVGO

Broadcom Trading Down 0.0% Shares of AVGO opened at $357.89 on Monday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The firm has a 50 day simple moving average of $383.57 and a 200-day simple moving average of $377.59. The stock 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 quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.10. 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 revenue was up 85.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.69 earnings per share. Equities analysts forecast that Broadcom Inc. will post 10.25 EPS for the current fiscal 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 issued a $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s payout ratio is 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. 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 AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains 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).

Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.

FSA Advisors Inc. purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 2,445 shares of the semiconductor manufacturer’s stock, valued at approximately $921,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Harvey Capital Management Inc. bought a new position in shares of Broadcom in the second quarter valued at about $578,000. N10 Assets LLC bought a new position in shares of Broadcom during the second quarter worth approximately $7,888,000. Coastal Bridge Advisors LLC lifted its holdings in Broadcom by 8.2% during the 2nd quarter. Coastal Bridge Advisors LLC now owns 19,028 shares of the semiconductor manufacturer’s stock worth $7,188,000 after purchasing an additional 1,438 shares during the last quarter. Triton Financial Group Inc acquired a new stake in shares of Broadcom during the second quarter worth $2,835,000. Finally, Stonehage Fleming Financial Services Holdings Ltd boosted its position in shares of Broadcom by 14.8% in the second quarter. Stonehage Fleming Financial Services Holdings Ltd now owns 610,705 shares of the semiconductor manufacturer’s stock valued at $230,694,000 after acquiring an additional 78,556 shares during the period. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance Shares of AVGO opened at $357.89 on Monday. The firm has a market cap of $1.70 trillion, a PE ratio of 45.71 and a beta of 1.44. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The business’s 50 day moving average price is $383.57 and its two-hundred day moving average price is $377.59. 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 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. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business’s revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.69 earnings per share. On average, equities analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current year. Broadcom Announces Dividend The company also recently announced 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. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s dividend payout ratio is presently 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 Transactions at Broadcom In related news, Director Justine Page sold 1,602 shares of the company’s stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction that occurred 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 completion of the sale, 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 SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 in the last 90 days. 1.90% of the stock is currently owned by company insiders.

Analyst Ratings Changes A number of analysts have issued reports on AVGO shares. Oppenheimer reissued an “outperform” rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Mizuho lifted their price objective on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Fox Advisors raised Broadcom to an “outperform” rating in a research note on Thursday. Finally, BMO Capital Markets boosted their target price on shares of Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research note on Thursday. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $500.60.

Check Out Our Latest Stock 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.

Read More Five stocks we like better than Broadcom AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains 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 is on track to deploying multi-gigawatt AI chip capacity with Anthropic and OpenAI, targeting over $350 billion in AI semiconductor revenue in two years. Yet, the market is wavering, as AVGO's valuation has compressed to under 21x forward earnings, with robust dip-buying support around $360. Revenue estimates for AVGO have improved further, with capacity ramping up and operating margins expected to remain above 68% despite gross margin compression.

Broadcom Inc. (AVGO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this chipmaker have returned -16.3% over the past month versus the Zacks S&P 500 composite's -0.1% change. The Zacks Electronics - Semiconductors industry, to which Broadcom Inc. belongs, has lost 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Broadcom Inc. is expected to post earnings of $3.66 per share, indicating a change of +87.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $11.74 points to a change of +72.1% from the prior year. Over the last 30 days, this estimate has changed +0.1%.

For the next fiscal year, the consensus earnings estimate of $19.12 indicates a change of +62.9% from what Broadcom Inc. is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Broadcom Inc. is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Broadcom Inc., the consensus sales estimate of $34.81 billion for the current quarter points to a year-over-year change of +93.3%. The $105.9 billion and $174.93 billion estimates for the current and next fiscal years indicate changes of +65.8% and +65.2%, respectively.

Last Reported Results and Surprise HistoryBroadcom Inc. reported revenues of $29.59 billion in the last reported quarter, representing a year-over-year change of +85.5%. EPS of $3.32 for the same period compares with $1.69 a year ago.

Compared to the Zacks Consensus Estimate of $29.47 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was +3.11%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Broadcom Inc. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Broadcom Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

The Vanguard Information Technology Index Fund ETF (VGT +0.32%) has crushed the S&P 500 this year, with a 27% return. Some investors think they missed out on the rally when a stock or ETF gains momentum, but that may not be the case for this tech ETF. A closer look at the fund's top holdings indicates that there is more to the strong year-to-date performance than investors may realize.

Image source: Getty Images.

This tech ETF offers significant exposure to the AI trade The Vanguard Information Technology Index Fund ETF is filled with chipmakers. Nvidia (NVDA +0.84%) is the largest position, making up 17% of the fund's total assets. Broadcom (AVGO +0.21%), Micron (MU +6.10%), and Advanced Micro Devices (AMD +4.69%) hold the top four to six positions in the fund and account for a combined 11% of total assets.

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Hyperscalers need these chips for their artificial intelligence infrastructure, and as long as cloud platforms and other businesses perform well thanks to AI, those investments will continue. Nvidia and Broadcom both gave multi-year guidance that implies AI revenue will continue to compound.

The largest positions in the portfolio look poised to deliver exceptional fundamental growth amid the AI boom. It's this type of growth that could help the Vanguard Information Technology Index Fund ETF extend its gains.

It's all tech The tech sector has historically been one of the best ways to beat the S&P 500 over the long run, and this ETF serves as an excellent example. The tech-focused Vanguard fund has an annualized return of 24.4% over the past decade.

Looking deeper into the fund reveals a major allocation to semiconductors and tech hardware, which together account for more than 60% of total assets, including semiconductor equipment.

It still has some exposure to other tech opportunities, such as e-commerce and online advertising. While these types of investments could beat the S&P 500, artificial intelligence is the hottest opportunity right now.

Grand View Research projects a 30.6% compound annual growth rate (CAGR) for the artificial intelligence industry through 2033. Some companies will grow faster than others as the rising tide of AI lifts many businesses, but chipmakers have been the market leaders. Nvidia, Micron, Broadcom, and Advanced Micro Devices are all posting revenue growth rates far more impressive than the average S&P 500 company, and multi-year deals suggest that it will continue.

The Vanguard Information Technology Index Fund ETF has a long history of beating the market and charges only a 0.09% expense ratio. It doesn't cost much to get a well-diversified portfolio of tech companies that should benefit from continued AI demand.

Marc Guberti has positions in Broadcom. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

Broadcom (AVGO +0.21%) and Nvidia (NVDA +0.84%) are two of the biggest names in the chipmaking business. While AMD is sometimes mentioned in the same conversations as those two giant chipmakers, it doesn't hold a candle to them in the AI accelerator space. Both Broadcom and Nvidia have recently provided quarterly updates to investors, and both of them are doing incredibly well.

But which one is the better buy now? 

Image source: The Motley Fool.

Nvidia has a broad business, while Broadcom is specialized Nvidia's chief products are graphics processing units (GPUs), which are broad-purpose accelerated computing units. These flexible chips can be tasked with nearly any type of workload that's suitable for a parallel processor and deliver incredible results. However, many of a GPU's capabilities can go to waste if that computing unit only deals with one type of workload in its service life. 

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Broadcom addresses that problem by designing ASICs -- application-specific integrated circuits. These chips are purpose-built for narrow workloads, so anything extraneous to those workloads can be dropped from their design, which saves money in several ways.

ASICs are nothing new; they've been used in industry for a long time. Recently, Broadcom has been catering to the hyperscaler and frontier labs markets, designing ASICs to handle the specific workloads generated by AI. Broadcom has partnered with hyperscalers such as Alphabet and Meta Platforms, and large language developers like Anthropic and OpenAI. Orders for those chips are starting to ramp up, which is boosting its results.

Both GPUs and ASICs have their merits, and no AI hyperscaler will ever be able to fully switch away from broad-purpose GPUs from a company like Nvidia. However, as hyperscalers look to optimize their processes, they may find that data centers with a higher share of custom AI chips from Broadcom could make the most sense. We'll see how it pans out, but currently, it looks like Nvidia is at higher risk of losing some of its massive market share in data center chips to custom designs than Broadcom is of losing share to Nvidia.

This tips the investment thesis scales in favor of Broadcom, as it's easier to be the hunter than the hunted, but Nvidia is still doing quite well in its own right.

Both Nvidia and Broadcom are crushing results When you look at the financials of these two companies, it's hard to be disappointed with either.

Broadcom reported its fiscal Q3 numbers on Sept. 2, and it noted that its AI semiconductor division grew by 221% year over year to $16.7 billion. Broadcom does other things as a company, so its overall growth rate was 86%, which is still impressive.

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Nvidia's AI-specific results weren't as impressive, with data center revenue (which is the division most influenced by AI spending) growing at a 117% pace to $89 billion. Still, it's impossible to complain about a 117% growth rate, particularly given the size of the revenue base that growth came on top of. Overall, Nvidia's revenue rose at a 106% year-over-year pace.

But which of these lightning-fast growers is the better buy? I believe this valuation metric holds the clue.

2027 will be a monster year for both companies Broadcom has long touted the growth it expects to deliver in 2027 as orders for its custom AI chips ramp up. Likewise, Nvidia informed investors recently that it expects a 70% growth rate in its next fiscal year. Given that we are in the back half of this year, I think it's wise for investors to start considering next year's earnings projections as the best tool to value these stocks.

From this perspective, Nvidia trades at a cheaper valuation than Broadcom.

AVGO PE Ratio (Forward 1y) data by YCharts.

However, with both stocks below 20 times next year's earnings, both have a huge amount of room for price growth. Given how rapidly these companies are growing, I think a valuation of 30 times forward earnings would be more appropriate. Based on that premise, Nvidia could double, while Broadcom's upside is over 50%.

I think that clearly makes Nvidia the better buy, but I am also a huge fan of Broadcom's stock and believe that it could have a successful year, given how cheap it is right now.

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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