Track market-moving stories before they get noisy

Baader Bank Aktiengesellschaft reduced its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 18.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 23,978 shares of the semiconductor manufacturer’s stock after selling 5,264 shares during the quarter. Baader Bank Aktiengesellschaft’s holdings in Broadcom were worth $7,421,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. State Street Corp lifted its holdings in shares of Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Broadcom by 1.4% during the fourth 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 holdings in shares of Broadcom by 3.0% in 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 acquiring an additional 2,491,644 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Broadcom in the 4th quarter valued at $24,252,196,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Analyst Ratings Changes Several equities analysts have recently issued reports on AVGO shares. Benchmark boosted their price objective on Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a research report on Tuesday, July 7th. Morgan Stanley set a $502.00 price objective on Broadcom and gave the stock an “overweight” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. raised their price objective on shares of Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $500.00 target price on shares of Broadcom in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Check Out Our Latest Report on Broadcom

Broadcom Stock Performance NASDAQ AVGO opened at $381.92 on Friday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock’s fifty day moving average is $397.42 and its two-hundred day moving average is $366.68. The firm has a market capitalization of $1.82 trillion, a P/E ratio of 63.65, a price-to-earnings-growth ratio of 0.75 and a beta of 1.45. Broadcom Inc. has a fifty-two week low of $281.61 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the company earned $1.58 EPS. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. On average, research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is 43.33%.

Insider Activity In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction dated 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 owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Harry L. You purchased 1,000 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate insiders own 1.90% of the company’s stock.

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

Positive Sentiment: Broadcom continues to be viewed as one of the strongest AI infrastructure names, with articles highlighting durable AI bookings, customer commitments through 2028, and the company’s importance in data center networking. Article Title Positive Sentiment: Several bullish commentary pieces argue the recent AI pullback is a buying opportunity, with analysts and market writers saying Broadcom still has room to grow and should benefit from continued AI spending. Article Title Positive Sentiment: TSMC’s planned price increases could reinforce pricing power for leading AI chip suppliers like Broadcom, which may support margins and investor confidence if demand remains strong. Article Title Positive Sentiment: Institutional buying also offered a constructive signal, as Alecta Pensionsförsäkring reportedly boosted its Broadcom stake by 99,200 shares. Article Title Neutral Sentiment: Broadcom was mentioned in a broader semiconductor sector piece saying the group is consolidating after a strong 2026 rally, with concerns around valuation and leveraged positioning contributing to July weakness across the chip space. Article Title Neutral Sentiment: Broadcom was also included in general “high ROE” and dividend-focused articles, reinforcing its quality profile but not adding a major new catalyst. Article Title Negative Sentiment: One headline noted a “large increase” in short interest in Broadcom during July, but the reported figures showed zero shares short, so this appears to be a data anomaly rather than a meaningful bearish signal. Article Title About Broadcom (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 AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

For much of the past year, investing in artificial intelligence felt refreshingly simple. Buy the companies building AI infrastructure or the chipmakers supplying it, and both sides generally moved higher together. That trade is becoming more complicated. Alphabet (NASDAQ:GOOG | GOOG Price Prediction) and Meta Platforms (NASDAQ:META) continue raising their AI spending plans, pushing annual capital expenditures toward levels that would have seemed unimaginable just two years ago. 

Yet as the price tag climbs into the hundreds of billions of dollars annually, investors are beginning to ask a more practical question: Who ultimately pays for all this spending, and when does it begin generating acceptable returns?

AI Spending Keeps Rising While Investor Confidence Slips The AI investment race isn’t slowing down. Over the past several weeks, both Alphabet and Meta increased their 2026 capital expenditure outlooks during earnings discussions, adding to an already record-setting spending cycle. Combined with Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), the four largest hyperscalers are now on pace to invest around $730 billion on AI infrastructure in 2026, with Wall Street already anticipating another increase in 2027.

Company 2026 AI Capex Outlook Alphabet $195 billion to $205 billion Meta Platforms $125 billion to $145 billion Microsoft $190 billion Amazon $200 billion These investments include data centers, networking equipment, AI accelerators, custom silicon, and the enormous power infrastructure needed to support them.

Granted, those investments continue fueling demand for companies such as Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Micron Technology (NASDAQ:MU), Taiwan Semiconductor Manufacturing (NYSE:TSM), and other semiconductor suppliers. But investors are becoming less convinced that the companies writing the checks will generate returns quickly enough to justify the spending.

Big Tech is doubling down on a $730 billion gamble, but the market's 'free ride' on AI infrastructure just hit a wall. © 24/7 Wall St. The AI Trade Is No Longer Moving Together According to research compiled by Kevin Gordon of Charles Schwab, the 30-day correlation between America’s largest capital expenditure spenders and the Philadelphia Semiconductor Index has collapsed to almost zero. That’s near the lowest reading in at least 4.5 years.

The change has been dramatic.

April 2026 correlation: +0.78 Average correlation since early 2022: +0.60 Current correlation: Near 0.00 Since the beginning of June, semiconductor stocks have generally advanced while many hyperscaler stocks have struggled to hold recent highs.

That divergence tells investors something important. The market no longer views AI infrastructure builders and AI suppliers as the same investment. Chipmakers benefit immediately from rising orders. Hyperscalers, meanwhile, must eventually prove those investments translate into stronger revenue growth, expanding margins, and higher free cash flow.

Ironically, the companies creating AI demand now face tougher questions than the companies selling the hardware.

The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.

Investors Are Beginning to Focus on the Bill Adding to those concerns, a recent Nikkei investigation reported that major hyperscalers collectively hold approximately $1.65 trillion in off-balance-sheet obligations tied largely to long-term infrastructure commitments used to support AI expansion.

While these commitments comply with accounting rules and are disclosed in regulatory filings, they highlight just how much future spending has already been committed outside traditional balance sheet debt.

Recent earnings reports and rising capital spending forecasts have coincided with pullbacks from recent highs among several hyperscaler stocks, suggesting investors are becoming more selective about companies whose profits remain years away.

That said, none of this means AI spending is ending. Quite the opposite. Demand for computing power continues accelerating, and the largest technology companies possess balance sheets capable of funding enormous investments. The debate has simply shifted from whether AI deserves investment to whether those investments will earn attractive returns.

Key Takeaway In short, AI has entered a new phase. For nearly two years, investors rewarded almost every company connected to artificial intelligence. Today, Wall Street is drawing distinctions.

Semiconductor companies continue benefiting from immediate demand, while hyperscalers increasingly must demonstrate that hundreds of billions of dollars in annual AI spending can produce sustained profit growth. Recent data suggests investors are already making that distinction.

Regardless of how large AI ultimately becomes, the next winners won’t necessarily be the companies spending the most money. They’ll be the ones that prove they can convert those enormous investments into durable cash flow and shareholder returns. For smart investors, that’s likely to become the defining theme of the AI trade over the next several years.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

- Join Stock Advisor for one year, with a 30-day money-back guarantee

- Get this month's two new picks — plus the Top 10 Rankings and the full historical pick list

- Read the analysis, decide for yourself, and trade through your own brokerage

Five years from now, you'll probably wish you'd bought this month's picks. Don't miss them.

Contact [email protected] for any questions or corrections.

Nvidia (NVDA -1.01%) has been a huge winner for its long-term -- and even its medium-term -- investors. Just since the AI arms race kicked off in 2023, the stock is up over 1,300%. With spectacular returns that have turned the chipmaker into the world's largest company already behind it, some investors may feel like they've missed the boat. Further, while I'd argue that Nvidia is still a fantastic investment at today's prices, many investors already have enough of it in their portfolios, and may instead want to add more diversification via some other high-potential tech option.

Two that have been widely successful as of late that I think still have strong upside from here are Broadcom (AVGO -2.88%) and Micron (MU -7.24%). 

Image source: Getty Images.

Broadcom Broadcom is an emerging competitor to Nvidia, thanks to its different approach to AI processing. Instead of designing broad-purpose GPUs as Nvidia does, it's teaming up with hyperscalers and others to design custom chips suited for their AI workloads. These application-specific integrated circuits (ASICs) can provide more cost-effective operations for handling the narrow range of workloads they are suited for, and they are all the rage right now in AI computing. Broadcom's big-name clients include Alphabet (GOOG +0.21%) (GOOGL +0.58%), Meta Platforms (META -1.80%), OpenAI, and Anthropic. All of them are at different stages of launching their own chips. However, most of its ASIC designs are starting to reach production, and Broadcom expects this to translate into huge growth over the next year.

Today's Change

(

-2.88

%) $

-11.29

Current Price

$

381.18

In its fiscal 2026 second quarter, which ended May 3, Broadcom's AI semiconductor revenue rose by a jaw-dropping 143% year over year to $10.8 billion. Annualized, that's $43.2 billion. However, Broadcom expects its AI semiconductor revenue to exceed $100 billion by the end of its fiscal 2027. If these custom AI chips turn out to be as popular as Broadcom expects, then 2027 could be just the beginning. That's huge news for investors, and with a lot of that growth still to come, now could be a perfect time to scoop up Broadcom shares before the stock really takes off, especially with it trading for just 19.9 times 2027 earnings.

Micron If you invested in Micron in 2023 instead of Nvidia, you've actually outperformed it. Micron's stock rose by over 1,800% in that time frame versus Nvidia's 1,300%. True, the bulk of those gains have come over the past few months, but I think the spread between these two will continue to grow over the next year.

Micron makes memory chips, which are in short supply in the data center world. The memory chip industry wasn't expecting the demand wave that hit due to the AI infrastructure build-out, and now, Micron and its peers are scrambling to build new foundries and increase production capacity. But in the meantime, prices of memory chips have skyrocketed, causing Micron's profits and revenues to soar.

MU Revenue (Quarterly YoY Growth) data by YCharts.

With Micron's management team telling investors that it expects memory shortages to persist beyond 2027, its outlook is quite strong, giving it a real chance to outperform Nvidia for years. Micron's fiscal 2027 starts in September, and Wall Street analysts expect 81% revenue growth. They also expect earnings per share to more than double from $73.39 in fiscal 2026 to $150.91 in fiscal 2027. Those would be incredible results.

However, because of the cyclical nature of the memory chip market, shareholders will need to keep a careful eye on this investment. Once the memory chip makers finally succeed in expanding production capacity to meet or exceed demand (or if the AI build-out slows and demand falls), they will lose the pricing power afforded them by the shortage. At that point, falling memory chip prices are likely to take a heavy toll on Micron's financials and its stock price.

Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is the second most important name in AI infrastructure, with shares delivering a 43.48% one-year return through July 22. The 24/7 Wall St. price target sees room to run, though the near-term climb is more measured than the last twelve months.

24/7 Wall St. Price Target for Broadcom Broadcom trades at $389.35. Our 24/7 Wall St. price target is $412.30, implying 5.9% upside over 12 months. The recommendation is buy with 90% confidence. That reflects high conviction tempered by AVGO’s nearly $1.888 trillion market cap, which limits multiple expansion.

Metric Value Current Price $389.35 24/7 Wall St. Price Target $412.30 Upside 5.9% Recommendation BUY Confidence 90% Whiplash After a Blowout Quarter Broadcom’s Q2 FY2026, reported June 3, 2026, delivered revenue of $22.187 billion (up 47.9% YoY), non-GAAP EPS of $2.44, and AI semiconductor revenue of $10.8 billion, up 143% YoY. Shares slid from $495 at filing to $360.45 thirty days later, a 27.2% drawdown against the Nasdaq-100’s -3.8%.

Sentiment rebounded on the July 8 Apple custom AI chip announcement worth more than $30 billion through 2031, and Morgan Stanley’s Portfolio Solutions added Broadcom on July 23 for “diversified exposure to multi-year AI infrastructure spending.” AVGO now trades 6% below its 52-week high of $494.18.

The Case for $500+ CEO Hock Tan guided AI semiconductor revenue to $16 billion in Q3 FY2026, up over 200% year-on-year and a path to in excess of $100 billion in AI revenue for FY2027. Bookings visibility extends to 2028, with Q2 AI bookings of over $30 billion against $10.8 billion shipped.

Google, Anthropic, OpenAI, Meta, and two additional customers each represent multi-gigawatt XPU commitments, with 2027 shipments guided at 10 gigawatts. If sector momentum holds, the bull case points to $532.66 in one year, and the 44 buy ratings vs. zero sells suggest Wall Street shares that view.

What Could Go Wrong Broadcom trades at roughly 66x earnings, with an implied P/E of 48x on the price target. Customer concentration is real: hyperscalers can insource, and Anthropic’s July agreement to buy two gigawatts of GPU capacity from AMD shows the multi-supplier playbook spreading.

Insider activity has skewed toward selling across 62 recent transactions. The bear case sees AVGO at $364.09 over the next year. Bulls counter that management is deliberately building 86 days of inventory ahead of an accelerating second half, signaling confidence.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

How Broadcom Compares to NVIDIA and Marvell NVIDIA (NASDAQ:NVDA) is the valuation anchor. NVIDIA posted Q1 FY2027 revenue of $81.6 billion, up 85.2% YoY, with Data Center Networking alone up 199%, competing directly with Broadcom’s Ethernet AI switches. At a trailing P/E near 43x against Broadcom’s 66x, NVIDIA looks cheaper on earnings despite faster growth, making the mega-cap dampener prudent.

Marvell Technology (NASDAQ:MRVL) is the pure custom-ASIC comp. Marvell delivered Q1 FY2027 data center revenue of $1.83 billion, up 27% YoY, and guided Q2 to $2.7 billion, roughly 35% growth. Next to Broadcom’s Q3 AI guide of $16 billion (up 200%+), AVGO emerges as the runaway leader in custom accelerators, making the $412.30 target reasonable.

Verdict: High Conviction With Sizing Discipline The 24/7 Wall St. price target of $412.30 with a buy rating and 90% confidence reflects a company printing record margins, sitting on a $100 billion-plus FY2027 AI revenue runway, and anchoring dividend-growth ETFs.

The stock suits investors who can stomach the volatility that took AVGO from $495 to $360 in a month, while the bear case still touches $364 for those monitoring a lower entry. This is a core AI infrastructure holding suited for long-term positioning.

Broadcom Price Prediction 2026-2030 Extending the model forward, here is where we see AVGO trading through the decade, assuming the AI infrastructure cycle and Hock Tan’s $100 billion AI revenue goal remain on track.

Year 24/7 Wall St. Price Target 2026 $412.30 2027 $438 2028 $462 2029 $485 2030 $506.76 These projections assume Broadcom converts its 2027-2028 bookings visibility into shipments. Meaningful upside or downside could come from hyperscaler insourcing or acceleration in gigawatts shipped beyond the current 10-gigawatt 2027 plan.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Artificial intelligence (AI) infrastructure is hitting a physical wall. As large language models grow exponentially in size, the legacy approach of throwing large, monolithic graphics processing units at the problem breaks down during the inference phase.

By physically separating prompt processing from token generation, Advanced Micro Devices NASDAQ: AMD and Cerebras Systems NASDAQ: CBRS have engineered a structural bypass to legacy computing bottlenecks. This heterogeneous architecture delivers unparalleled efficiency in ultra-low latency environments, immediately positioning both hardware developers to capture the premium enterprise inference market.

Get Advanced Micro Devices alerts:

Cracking Compute: Why Monolithic Chips StumbleUnderstanding how AI models generate text or code reveals why this partnership matters. Inference involves two very different workloads. First, the system must process the prompt and context window, which requires high computational throughput to digest thousands of words in real time. Second, the system generates the response token by token, a process demanding ultra-low latency and immense memory bandwidth.

Monolithic chips attempt to handle both tasks simultaneously, resulting in a bottleneck where the processor wastes time waiting for memory to catch up. The technical combination unveiled at the Advancing AI 2026 event systematically solves this bottleneck.

AMD brings its Helios rack-scale systems to manage the high-throughput prompt processing. Cerebras Systems integrates its Wafer-Scale Engine to handle the rapid-fire token generation. Operating as a single disaggregated workflow, the two distinct computing engines handle the specific tasks they were explicitly designed to execute.

Expanding the Moat: How Hardware Efficiency Builds MarginsAdvanced Micro Devices Today

AMD

Advanced Micro Devices

$540.11 +0.42 (+0.08%)

As of 12:24 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$149.22▼

$584.73P/E Ratio177.08

Price Target$478.78

From a fundamental valuation perspective, hardware efficiency translates directly into pricing power. Data center operators are currently constrained by power availability and cooling capacity, making energy efficiency the most critical metric in cloud computing. The joint solution aims to achieve a fivefold increase in tokens per second per watt compared to standalone hardware.

AMD expects the Helios platform to deliver 30% more inference tokens per dollar than legacy monolithic racks. When cloud service providers can generate more output using the same energy footprint, their operating margins expand. That structural total cost of ownership advantage provides both hardware manufacturers with a formidable economic moat as hyperscalers look to optimize their capital expenditures.

Capturing the High-Rent District: Premium Latency MarketsHigh-volume workloads like batch processing prioritize total token generation, but the next frontier of artificial intelligence demands instant reaction times. Applications like autonomous agents, real-time customer service copilots, and high-frequency coding assistants require ultra-low latency. If a cybersecurity protocol takes even two seconds to generate an inference response, the breach has already happened.

Cerebras Systems Today

CBRS

Cerebras Systems

$203.97 -16.03 (-7.29%)

As of 12:24 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$160.81▼

$386.34Price Target$299.30

This latency-sensitive segment represents the highest-margin opportunity in the sector, and tier-1 enterprise adoption is already accelerating. Cerebras Systems recently partnered with CrowdStrike to integrate wafer-scale inference into the Falcon AIDR platform, validating the demand for real-time security processing. Concurrently, Microsoft Azure plans to deploy the Helios system across its data centers in the second half of 2026, offering vast distribution channels for the new architecture.

AMD also executed a brilliant capital allocation maneuver by securing a $5 billion equity stake in Anthropic. Rather than just investing cash for a financial return, the agreement locks in commitments to core graphics processing unit capacity for 2027. Securing captive demand from one of the leading foundational model developers derisks forward revenue projections and guarantees high utilization rates for the new disaggregated infrastructure.

Scaling Through the NoiseDespite these structural tailwinds, retail market sentiment often misprices short-term volatility. Shares of Cerebras Systems recently fell about 10% intraday to around $194, well below its post-IPO peak. First-quarter earnings revealed a net loss of 4 cents per share, beating consensus estimates, alongside strong core revenue of $191.3 million. Management warned of a 10-15 percentage-point drop in cloud and service margins over the near term.

Analysts recognize that not all margin compression is created equal. Cerebras Systems is currently renting external third-party compute capacity to fulfill a rapidly growing tier-1 enterprise backlog. This transient capital expenditure is a direct byproduct of outsized demand outstripping current deployment capacity. Sacrificing near-term margins to secure dominant market share is a classic infrastructure growth playbook, not a signal of structural pricing weakness.

The accompanying bearish optics of insider selling require similar contextualization. Liquidations by the chief operating officer and chief accounting officer occurred precisely at the expiration of the May 2026 IPO lock-up period and the standard quarterly 10b5-1 programmatic selling windows.

Executive diversification following a major liquidity event is a routine corporate mechanism, entirely separate from underlying business conviction. Active securities litigation regarding post-IPO volatility represents standard plaintiff posturing that poses a negligible threat to the underlying technology moat.

Completing the Build: Why Disaggregated Compute WinsAMD presents a different fundamental profile, trading near $531 after an impressive 146% year-to-date run. While the valuation is steep, carrying a forward price-to-earnings ratio of 83.94, the underlying growth narrative supports the premium. First-quarter earnings per share reached $1.37, driven by a 37.8% year-over-year revenue expansion. Management has established a firm floor underneath AMD through an active $6 billion share buyback program initiated in May 2025.

The transition toward heterogeneous, specialized compute clusters is no longer a theoretical roadmap. It is actively deploying across major cloud providers. By separating distinct AI inference workloads into optimized hardware streams, this partnership rewrites the economics of data center scaling. Investors evaluating semiconductor exposure might want to monitor how aggressively hyperscalers adopt this disaggregated hardware approach as enterprise deployments accelerate through the end of 2026.

Should You Invest $1,000 in Advanced Micro Devices Right Now?Before you consider Advanced Micro Devices, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Advanced Micro Devices wasn't on the list.

While Advanced Micro Devices currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

Get This Free Report

Posted by Defense World Staff on Jul 24th, 2026

AlTi Global Inc. boosted its holdings in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 7.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 24,796 shares of the semiconductor manufacturer’s stock after buying an additional 1,796 shares during the quarter. AlTi Global Inc.’s holdings in Broadcom were worth $7,674,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. ROSS JOHNSON & Associates LLC raised its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Networth Advisors LLC grew its stake in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the last quarter. SWAN Capital LLC increased its holdings in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 55 shares during the period. Nvest Wealth Strategies Inc. acquired a new position in Broadcom during the 4th quarter worth about $33,000. Finally, Family CFO Inc acquired a new position in Broadcom during the 4th quarter worth about $35,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

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

Positive Sentiment: Broadcom was singled out as a leading AI infrastructure stock, with analysts noting its strong AI bookings and long-dated customer commitments as advantages over smaller rivals. CBRS vs. AVGO: Which Stock Leads the AI Infrastructure Boom? Positive Sentiment: Coverage also pointed to Broadcom as one of the top networking semiconductor names to watch because AI data center demand is accelerating and driving interest in the group. 4 Networking Semiconductor Stocks to Watch in August 2026 Positive Sentiment: Another piece argued that Broadcom’s AI trade remains intact after Alphabet’s strong earnings, supporting the broader market’s enthusiasm for AI infrastructure suppliers. The AI Trade Isn’t Slowing Positive Sentiment: Broadcom was also highlighted as a beneficiary of AI exposure plus dividend income, reinforcing its appeal to growth-and-income investors. These Stocks Offer AI Exposure and Dividend Payouts Neutral Sentiment: Several articles compared Broadcom’s year-to-date performance with other tech stocks and broader sector returns, but these were mostly performance updates rather than new catalysts. Are Computer and Technology Stocks Lagging Broadcom (AVGO) This Year? Neutral Sentiment: Commentary on Broadcom as a dividend ETF holding and on billionaire investor Philippe Laffont’s tech picks added some sentiment support, but did not point to a direct company-specific event. This Dividend ETF Choice Could Shape Your Income Strategy Through 2026 Negative Sentiment: One note flagged insider selling at Broadcom, which may temper enthusiasm a bit after the stock’s strong run. Insider Moves Are Sending Mixed Signals Across the Tech Sector Broadcom Stock Down 1.1% Shares of NASDAQ:AVGO opened at $392.47 on Friday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business’s 50 day moving average is $398.28 and its 200 day moving average is $366.58. Broadcom Inc. has a 12-month low of $281.61 and a 12-month high of $495.00. The stock has a market cap of $1.87 trillion, a price-to-earnings ratio of 65.41, a PEG ratio of 0.76 and a beta of 1.45.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the previous year, the firm earned $1.58 EPS. The business’s revenue for the quarter was up 47.9% compared to the same quarter last year. On average, sell-side analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Analyst Ratings Changes Several equities research analysts have recently weighed in on the company. Mizuho increased their price target on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. KeyCorp reiterated an “overweight” rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the company an “overweight” rating in a report on Thursday, June 4th. Finally, DA Davidson increased their price target on Broadcom from $375.00 to $400.00 and gave the stock a “neutral” rating in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Get Our Latest Stock Analysis on AVGO

Insider Activity In other Broadcom news, Director Harry L. You bought 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The stock was bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. Corporate 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.

Featured Articles Five stocks we like better than Broadcom Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market

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.

« PREVIOUS HEADLINEArrowstreet Capital Limited Partnership Sells 199,754 Shares of Hilton Worldwide Holdings Inc. $HLT

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Broadcom Inc. (AVGO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Broadcom Inc. is a member of our Computer and Technology group, which includes 612 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AVGO's full-year earnings has moved 2.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AVGO has returned about 14.7% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 13.2% on average. This shows that Broadcom Inc. is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, Lenovo Group Ltd. (LNVGY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 161.5%.

The consensus estimate for Lenovo Group Ltd.'s current year EPS has increased 59.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Broadcom Inc. belongs to the Electronics - Semiconductors industry, a group that includes 50 individual stocks and currently sits at #55 in the Zacks Industry Rank. On average, stocks in this group have gained 35.3% this year, meaning that AVGO is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Lenovo Group Ltd. falls under the Computer - Micro Computers industry. Currently, this industry has 5 stocks and is ranked #19. Since the beginning of the year, the industry has moved +24.7%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Broadcom Inc. and Lenovo Group Ltd. as they could maintain their solid performance.

Posted by Defense World Staff on Jul 23rd, 2026

Boston Common Asset Management LLC boosted its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 1.3% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 123,544 shares of the semiconductor manufacturer’s stock after buying an additional 1,600 shares during the quarter. Broadcom makes up about 2.5% of Boston Common Asset Management LLC’s holdings, making the stock its 6th biggest position. Boston Common Asset Management LLC’s holdings in Broadcom were worth $38,238,000 at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of the company. Fullerton Advisors LLC grew its position in shares of Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co grew its holdings in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after buying an additional 25 shares during the last quarter. RFG Holdings Inc. grew its holdings in Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after buying an additional 26 shares during the last quarter. Yukon Wealth Management Inc. increased its position in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after buying an additional 26 shares during the period. Finally, Capital Planning LLC lifted its holdings in shares of Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after buying an additional 28 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

Broadcom Stock Up 2.7% Shares of AVGO opened at $396.81 on Thursday. The company has a market capitalization of $1.89 trillion, a P/E ratio of 66.14, a PEG ratio of 0.74 and a beta of 1.45. Broadcom Inc. has a one year low of $273.00 and a one year high of $495.00. The business’s 50 day simple moving average is $399.23 and its 200-day simple moving average is $366.26. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same quarter last year, the company posted $1.58 EPS. The company’s quarterly revenue was up 47.9% compared to the same quarter last year. As a group, sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio is currently 43.33%.

Wall Street Analyst Weigh In AVGO has been the topic of a number of research reports. Weiss Ratings raised shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 15th. Rosenblatt Securities restated a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Wall Street Zen downgraded shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Oppenheimer reiterated an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 target price on Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average target price of $493.24.

Get Our Latest Report on AVGO

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

Positive Sentiment: Broadcom is seen as a beneficiary of a new cloud deal, which could support future growth and reinforce its position in AI and cloud infrastructure. Broadcom stands to gain from new cloud deal Positive Sentiment: Analysts and bullish commentators continue to highlight Broadcom’s AI exposure, dividend income, and its VCF software business as a growing earnings driver, suggesting more upside if enterprise demand stays strong. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broader chip-sector momentum and renewed interest in AI-linked semiconductor names are helping lift Broadcom alongside peers, with UBS saying the recent selloff may be nearing exhaustion. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Several market pieces also argue Broadcom remains attractive at record highs because of strong cash generation and long-term execution under CEO Hock Tan. Cash is Always King Which is Why I Will Not Stop Adding Broadcom Neutral Sentiment: Some coverage simply notes Broadcom’s continued strength relative to the broader market, while other articles focus on the company as a core AI and dividend holding rather than on a fresh catalyst. These Stocks Offer AI Exposure and Dividend Payouts Negative Sentiment: Insider selling has added a cautious tone, with reports describing mixed insider signals across tech and noting Broadcom sales after a volatile stretch for the stock. Insider Moves Are Sending Mixed Signals Across the Tech Sector (AVGO) Negative Sentiment: Broadcom also faced some sentiment pressure after a patent-related ITC investigation was reported, which could create headline risk even if the direct business impact is still unclear. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Insider Transactions at Broadcom In other news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Justine Page sold 1,602 shares of the business’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the 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 position. The SEC filing for this sale provides additional information. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 over the last 90 days. 1.90% of the stock is currently owned by corporate insiders.

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 Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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.

« PREVIOUS HEADLINECalifornia Public Employees Retirement System Increases Position in Penumbra, Inc. $PEN

NEXT HEADLINE »California Public Employees Retirement System Reduces Stock Position in Align Technology, Inc. $ALGN

Decker Wealth Management LLC bought a new position in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor bought 29,029 shares of the semiconductor manufacturer’s stock, valued at approximately $8,985,000. Broadcom accounts for about 2.0% of Decker Wealth Management LLC’s holdings, making the stock its 14th largest position.

Other hedge funds also recently bought and sold shares of the company. Norges Bank acquired a new stake in Broadcom in the fourth quarter valued at $24,252,196,000. Cardano Risk Management B.V. increased its holdings in shares of Broadcom by 895.2% in the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after acquiring an additional 11,414,701 shares during the period. State Street Corp increased its stake in 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 purchasing an additional 5,040,801 shares during the period. Vanguard Group Inc. grew its holdings in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in Broadcom by 52.5% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 8,593,629 shares of the semiconductor manufacturer’s stock valued at $2,974,255,000 after acquiring an additional 2,959,397 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

Wall Street Analysts Forecast Growth A number of analysts have weighed in on the company. Rosenblatt Securities reaffirmed a “buy” rating and set a $500.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Jefferies Financial Group set a $550.00 target price on Broadcom and gave the company a “buy” rating in a report on Thursday, June 4th. Erste Group Bank restated a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. Evercore reissued an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $525.00 price objective on shares of Broadcom in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $493.24.

View Our Latest Analysis on AVGO

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

Positive Sentiment: Broadcom is seen as a beneficiary of a new cloud deal, which could support future growth and reinforce its position in AI and cloud infrastructure. Broadcom stands to gain from new cloud deal Positive Sentiment: Analysts and bullish commentators continue to highlight Broadcom’s AI exposure, dividend income, and its VCF software business as a growing earnings driver, suggesting more upside if enterprise demand stays strong. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broader chip-sector momentum and renewed interest in AI-linked semiconductor names are helping lift Broadcom alongside peers, with UBS saying the recent selloff may be nearing exhaustion. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Several market pieces also argue Broadcom remains attractive at record highs because of strong cash generation and long-term execution under CEO Hock Tan. Cash is Always King Which is Why I Will Not Stop Adding Broadcom Neutral Sentiment: Some coverage simply notes Broadcom’s continued strength relative to the broader market, while other articles focus on the company as a core AI and dividend holding rather than on a fresh catalyst. These Stocks Offer AI Exposure and Dividend Payouts Negative Sentiment: Insider selling has added a cautious tone, with reports describing mixed insider signals across tech and noting Broadcom sales after a volatile stretch for the stock. Insider Moves Are Sending Mixed Signals Across the Tech Sector (AVGO) Negative Sentiment: Broadcom also faced some sentiment pressure after a patent-related ITC investigation was reported, which could create headline risk even if the direct business impact is still unclear. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Broadcom Price Performance Broadcom stock opened at $396.81 on Thursday. Broadcom Inc. has a 52-week low of $273.00 and a 52-week high of $495.00. The firm has a fifty day moving average of $399.23 and a 200-day moving average of $366.26. The firm has a market capitalization of $1.89 trillion, a P/E ratio of 66.14, a PEG ratio of 0.74 and a beta of 1.45. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period in the prior year, the company earned $1.58 EPS. The firm’s revenue was up 47.9% on a year-over-year basis. As a group, analysts predict that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid 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 was Monday, June 22nd. Broadcom’s payout ratio is currently 43.33%.

Insider Buying and Selling In other news, Director Justine Page sold 1,602 shares of the company’s stock in a transaction dated Monday, June 29th. The stock was 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 $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider 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 position. The SEC filing for this sale provides additional information. In the last ninety 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.

Featured Articles Five stocks we like better than Broadcom Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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.

Taiwan Semiconductor Manufacturing (TSM -0.64%) is a very important company to follow. It's a key chip fabricator for nearly every company involved in the artificial intelligence (AI) build-out. If TSMC raises the red flag regarding AI build-out health, then investors have every right to panic and dump shares of every AI-related stock they own. But TSMC didn't do that. Instead, it made an announcement that waved the green flag and gave every indication that the AI build-out could last for several more years.

This is huge news for many companies, but I think Broadcom (AVGO +2.77%) and Nvidia (NVDA +2.39%) are two of the biggest beneficiaries of this announcement. These two have had a rough go lately, with both stocks falling amid fears that AI hyperscalers are overspending on computing capacity and may cut spending to meet demand. However, TSMC's news suggests investors should be more inclined to believe industry experts than the market's feelings.

Image source: Getty Images.

TSMC has a finger on the industry's pulse TSMC is a chip fabricator, which means that its clients provide chip designs and TSMC fabricates them at scale in the most efficient way possible. It doesn't try to market any of its own chips, making it a neutral player in the industry. This neutrality, along with increased AI demand, has helped TSMC grow rapidly.

Today's Change

(

-0.64

%) $

-2.70

Current Price

$

421.91

In its most recent conference call following an earnings release, TSMC management confirmed the AI build-out has not slowed. In fact, it announced an additional $100 billion investment to grow its Arizona production facilities. With the push to produce more chips domestically, this is a major announcement and shows TSMC's commitment to increasing U.S. domestic supply. TSMC CEO C.C. Wei spoke about the urgency of the AI build-out, saying he sees robust demand through 2029 to 2030 and that this could be creating a new industry.

Those words should please Nvidia and Broadcom investors' ears, as they confirm the longevity of the AI build-out and that these stocks are free to be valued for growth next year, rather than what each expects in 2026.

Today's Change

(

2.77

%) $

10.70

Current Price

$

397.20

Broadcom and Nvidia are priced to soar TSMC handles the majority of Nvidia and Broadcom chip production. Given how the market is valuing these two stocks at the moment, there appears to be an assumption that the AI build-out might slow by the end of 2026, despite TSMC saying that isn't the case.

Nvidia and Broadcom stocks trade for 22.6 and 31.9 times forward earnings, respectively. For reference, the S&P 500 trades for 21.5 times forward earnings.

Data by YCharts.

Nvidia is barely priced at a premium to the market. Broadcom still holds a decent premium, but when next year's growth is priced in, that goes away.

Data by YCharts.

If these stocks are evaluated using next year's earnings projections, that premium disappears completely, and the stocks look dirt cheap. It appears the market isn't pricing in any AI success in 2027 and beyond. However, this guidance from TSMC of robust demand and strong growth through 2029 or 2030 suggests major upside ahead for these two over the next few years.

I think both Nvidia and Broadcom are screaming buys at these levels. Patient investors can receive a massive payoff over the next few years as these two rise to meet their full potential as stocks.

Keithen Drury has positions in Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

HomeStock IdeasLong IdeasTech 

SummaryBroadcom Inc. delivered a record Q2 FY26 with 47.9% YoY top line growth, driven by explosive AI semiconductor demand.Robust momentum in AVGO's AI silicon business, which now comprises 49% of consolidated revenue, and an elevated backlog should support top line growth through FY26.Operating leverage is likely to keep margins strong over the coming quarters despite continued pressure from high R&D.I maintain a BUY rating on AVGO, citing attractive valuation, a leading market position, and demand visibility from multi-year AI customer commitments. Sundry Photography/iStock Editorial via Getty Images

The Thesis The leading North American AI semiconductor company, Broadcom Inc. (AVGO), exited the first half of FY26 with strong momentum, delivering robust growth across its top line and bottom line in

1.32K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AVGO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

Posted by Defense World Staff on Jul 22nd, 2026

Dorsey Wright & Associates grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 44.9% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 52,125 shares of the semiconductor manufacturer’s stock after purchasing an additional 16,154 shares during the quarter. Broadcom makes up approximately 2.0% of Dorsey Wright & Associates’ investment portfolio, making the stock its 12th largest position. Dorsey Wright & Associates’ holdings in Broadcom were worth $16,133,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC increased its position in shares of 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 acquiring an additional 66 shares during the period. SWAN Capital LLC boosted its holdings in shares of Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 55 shares during the period. Networth Advisors LLC boosted its holdings in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 71 shares during the period. Nvest Wealth Strategies Inc. bought a new position in Broadcom in the fourth quarter worth approximately $33,000. Finally, Family CFO Inc bought a new position in Broadcom in the fourth quarter worth approximately $35,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom Stock Performance Shares of NASDAQ:AVGO opened at $386.50 on Wednesday. The firm has a 50 day moving average of $399.63 and a 200 day moving average of $365.90. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $1.84 trillion, a price-to-earnings ratio of 64.42, a price-to-earnings-growth ratio of 0.66 and a beta of 1.45. Broadcom Inc. has a 52 week low of $273.00 and a 52 week high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion for the quarter, compared to analysts’ expectations of $22.13 billion. During the same quarter last year, the firm earned $1.58 EPS. The business’s revenue for the quarter was up 47.9% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid 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 was Monday, June 22nd. Broadcom’s dividend payout ratio is 43.33%.

Analyst Upgrades and Downgrades A number of equities research analysts have weighed in on the company. UBS Group set a $485.00 target price on Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. KeyCorp reissued an “overweight” rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Citigroup restated a “buy” rating on shares of Broadcom in a research note on Thursday, June 4th. Bank of America raised their price target on Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Finally, Royal Bank Of Canada lifted their price objective on Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Check Out Our Latest Analysis on Broadcom

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

Positive Sentiment: UBS said the recent momentum unwind in semiconductors may be nearing its end, which could allow investors to rebuild positions in names like Broadcom as forced selling eases. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Analysts highlighted Broadcom’s VMware Cloud Foundation momentum, saying the software platform is becoming a larger growth engine as enterprises move private clouds and AI workloads to virtualized environments. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broadcom benefited from a broader semiconductor rebound, with chip stocks rising as investors bought the dip after the recent selloff and AI-related volatility. 5 Things to Know Before the Stock Market Opens on Tuesday Positive Sentiment: Morgan Stanley continued to frame Broadcom as one of the more attractive AI infrastructure names, citing strong cash generation and favorable risk-reward after the sector pullback. Broadcom stock gains 2% today: here’s why Neutral Sentiment: Broadcom also got a boost from a new Standard Chartered deal to power banking cloud modernization across 54 markets, reinforcing the value of its VMware-based infrastructure software. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Negative Sentiment: Sentiment remains somewhat pressured by an ITC investigation tied to Netlist’s patent complaint, which pulled Broadcom into broader regulatory noise around Samsung memory products and customers. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Negative Sentiment: Some headlines also noted that an AI-focused trading model sold Broadcom after its expected return profile weakened, reflecting lingering caution after the recent tech selloff. Claude AI Sells Broadcom (AVGO) Stock Insider Buying and Selling In other Broadcom news, Director Justine Page sold 1,602 shares of the business’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 completion of the transaction, the director directly owned 17,426 shares in the company, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last three months. 1.90% of the stock is owned by company insiders.

About Broadcom (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 Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible

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.

« PREVIOUS HEADLINEBalefire LLC Takes Position in Palo Alto Networks, Inc. $PANW

NEXT HEADLINE »California Public Employees Retirement System Raises Stake in Host Hotels & Resorts, Inc. $HST

Ascent Wealth Partners LLC grew its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 5.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 24,804 shares of the semiconductor manufacturer’s stock after purchasing an additional 1,347 shares during the quarter. Ascent Wealth Partners LLC’s holdings in Broadcom were worth $7,677,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. State Street Corp lifted its position in Broadcom by 2.7% in the 4th 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 in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Broadcom by 1.4% during the fourth 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 in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of 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 acquiring an additional 2,491,644 shares during the last quarter. Finally, Norges Bank purchased a new stake in Broadcom during the 4th quarter valued at $24,252,196,000. Institutional investors own 76.43% of the company’s stock.

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

Positive Sentiment: UBS said the recent momentum unwind in semiconductors may be nearing its end, which could allow investors to rebuild positions in names like Broadcom as forced selling eases. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Analysts highlighted Broadcom’s VMware Cloud Foundation momentum, saying the software platform is becoming a larger growth engine as enterprises move private clouds and AI workloads to virtualized environments. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broadcom benefited from a broader semiconductor rebound, with chip stocks rising as investors bought the dip after the recent selloff and AI-related volatility. 5 Things to Know Before the Stock Market Opens on Tuesday Positive Sentiment: Morgan Stanley continued to frame Broadcom as one of the more attractive AI infrastructure names, citing strong cash generation and favorable risk-reward after the sector pullback. Broadcom stock gains 2% today: here’s why Neutral Sentiment: Broadcom also got a boost from a new Standard Chartered deal to power banking cloud modernization across 54 markets, reinforcing the value of its VMware-based infrastructure software. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Negative Sentiment: Sentiment remains somewhat pressured by an ITC investigation tied to Netlist’s patent complaint, which pulled Broadcom into broader regulatory noise around Samsung memory products and customers. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Negative Sentiment: Some headlines also noted that an AI-focused trading model sold Broadcom after its expected return profile weakened, reflecting lingering caution after the recent tech selloff. Claude AI Sells Broadcom (AVGO) Stock Wall Street Analyst Weigh In Several research firms have weighed in on AVGO. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. TD Cowen reaffirmed a “buy” rating and issued a $500.00 price target on shares of Broadcom in a report on Thursday, June 4th. Citigroup reissued a “buy” rating on shares of Broadcom in a research note on Thursday, June 4th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $525.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Finally, KeyCorp reaffirmed an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom has an average rating of “Moderate Buy” and an average target price of $493.24.

View Our Latest Research Report on Broadcom

Insider Transactions at Broadcom In other news, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction that occurred 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 transaction, the director directly owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 over the last three months. Company insiders own 1.90% of the company’s stock.

Broadcom Trading Up 2.2% NASDAQ:AVGO opened at $386.50 on Wednesday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $1.84 trillion, a price-to-earnings ratio of 64.42, a PEG ratio of 0.66 and a beta of 1.45. Broadcom Inc. has a 52 week low of $273.00 and a 52 week high of $495.00. The firm has a 50 day moving average of $399.63 and a 200 day moving average of $365.90.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the previous year, the business earned $1.58 EPS. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s payout ratio is 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.

Featured Articles Five stocks we like better than Broadcom Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible 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.

Broadcom remains essential in global tech, supplying critical chips and enabling hyperscalers to build custom silicon, challenging Nvidia's dominance. The renewed $30 billion, 6-year Apple deal secures AVGO's position in Apple's supply chain, maintaining a ~$5 billion annual revenue stream. AVGO's collaboration with OpenAI on custom AI processors highlights its role as an irreplaceable 'pick and shovel' provider in the AI infrastructure shift.

Key Takeaways Broadcom's VCF demand helped Infrastructure Software revenue rise 9% to $7.2 billion in fiscal Q2.VCF 9.1 unifies AI inference, Kubernetes and virtualized workloads across NVIDIA, AMD and Intel platforms.Standard Chartered is standardizing on VCF across 54 markets, with nearly 70% of infrastructure migrated. Broadcom’s (AVGO - Free Report) VMware Cloud Foundation (VCF) is becoming a major growth engine for the Infrastructure Software business. Demand for VCF 9.1 remains strong as enterprises increasingly deploy on-premises private clouds to support AI inference, Kubernetes and traditional virtualized workloads on a common platform. This momentum helped Infrastructure Software revenues increase 9% year over year to $7.2 billion in the second quarter of fiscal 2026, with Broadcom projecting an acceleration to approximately $8.9 billion, up 31% year over year, in the third quarter of fiscal 2026.

Broadcom is positioning VCF as the operating platform for enterprise AI. The latest VCF release supports heterogeneous computing across NVIDIA (NVDA - Free Report) , AMD and Intel platforms, allowing enterprises to run AI inference, Kubernetes and traditional virtualized workloads on a unified private cloud. Customers deploying VCF for private cloud modernization are also adopting AI workloads. This enables AVGO to sell additional software capabilities around automation, security, networking and AI infrastructure management. This is increasing customer spending while strengthening long-term annual recurring revenue, which grew 17% year over year in the second quarter of fiscal 2026.

Standard Chartered recently selected VCF to modernize its global IT infrastructure, reinforcing the growing enterprise adoption of Broadcom’s flagship private cloud platform. The bank is standardizing its infrastructure on VCF to support secure, software-defined private cloud operations across 54 markets. With nearly 70% of its infrastructure already migrated, the deployment enables faster infrastructure provisioning, stronger zero-trust security and greater operational resilience for mission-critical banking services.

The Standard Chartered deployment strengthens Broadcom’s long-term software prospects by showcasing VCF’s ability to win large, multi-year enterprise transformation projects in highly regulated industries. As more global enterprises adopt VCF to modernize private cloud environments while preparing AI-ready infrastructure, Broadcom is well positioned to expand recurring software revenues, increase annual recurring revenue and strengthen the Infrastructure Software segment as a durable growth driver, alongside its AI semiconductor business.

AI & VMware to Drive AVGO’s Top-Line GrowthBroadcom expects AI semiconductor revenues to reach approximately $56 billion in fiscal 2026, up roughly 180% year over year, and exceed $100 billion in fiscal 2027. Long-term agreements with Google, Meta, OpenAI and Anthropic provide strong visibility into future demand for custom AI accelerators and networking products.

Broadcom’s AI semiconductor business builds the hardware infrastructure, while VCF provides the software layer enterprises need to deploy and manage AI applications securely. This combination allows AVGO to participate across the AI stack — from silicon and networking to enterprise software — creating multiple avenues for sustained revenue growth and reducing dependence on any single business segment.

AVGO Faces Tough CompetitionBroadcom is facing stiff competition in the semiconductor and infrastructure software markets from NVIDIA and Cisco Systems (CSCO - Free Report) , respectively.

NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Data Center revenues reached $75.2 billion in the first quarter of fiscal 2027, up 92% from a year ago and up 21% sequentially, driven by the ramp-up of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions.

Cisco competes with Broadcom in the AI networking infrastructure domain. Cisco provides AI networking systems built around Silicon One, Nexus switches, routers, Acacia optics and end-to-end AI fabrics. Cisco recently raised its fiscal 2026 hyperscaler AI infrastructure orders target to $9 billion (from $5 billion), highlighting strong traction in AI networking. Cisco’s strategy to deliver the entire AI networking stack by combining Silicon One, Nexus switching, Acacia optics, security, observability and AI networking software has been a key catalyst.

AVGO’s Share Price Performance, Valuation & EstimatesBroadcom shares have appreciated 11% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 12.1%.

AVGO Stock Lags Sector
Image Source: Zacks Investment Research

The AVGO stock is trading at a premium, with a forward 12-month price/sales of 11.59X compared with the broader sector’s 6.6X. Broadcom has a Value Score of D.

AVGO Stock’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, suggesting 72.14% growth from fiscal 2025’s reported figure.
 

Broadcom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

I keep hitting the buy button on Broadcom (NASDAQ:AVGO | AVGO Price Prediction) because Hock Tan is running a chip company with the cash mechanics of a software business, and my retirement account wants to own that trade for years. Wall Street is nervous about AI capital spending eating free cash flow across the sector. Broadcom is answering that worry with a receipt every 90 days.

The Cash Machine Doing the Talking In fiscal Q2 2026, Broadcom generated $10.262 billion in free cash flow, or 46% of revenue. Full fiscal 2025 free cash flow came in at $26.914 billion, up 38.63% year over year. Capital expenditures ran just $623 million for the full year against $27.5 billion in operating cash flow. That is a semiconductor company converting revenue to owner cash at software-like ratios, and it is why I keep adding.

Hock Tan spelled it out on the June call: “Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage.” Adjusted EBITDA margin hit 69% of revenue. Operating margin printed 67%. Those are toll-road numbers, the kind software businesses print.

Backlog That Underwrites the Dividend The second reason my finger keeps hovering: visibility. Broadcom entered 2026 with an AI backlog exceeding $73 billion, and Q2 alone booked $30 billion in AI orders against $10.8 billion shipped. Q3 AI revenue is guided to $16.0 billion, up over 200% year over year, and Tan reiterated a goal to exceed $100 billion in AI semiconductor revenue in 2027. Add in the $30 billion-plus Apple custom AI chip deal running through 2031 and I can see the shape of the cash flows funding my dividend checks for years.

That dividend, by the way, just marked its 15th consecutive annual increase since fiscal 2011. Q2 dividends paid: $3.1 billion. Q1 buybacks: $7.8 billion. This company is returning cash while investing in a decade-long AI ramp.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

The VMware Ballast The third pillar is VMware. Infrastructure Software delivered $7.178 billion in Q2 at a 93% gross margin, with ARR growth of 17%. That recurring software cash effectively subsidizes the 2nm R&D bill without diluting shareholder returns. It is the operational stabilizer Wall Street undervalues.

Why Not the Obvious Names Retirement money asks about NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). I own some NVIDIA. AMD I have skipped because its AI revenue trajectory sits near $5 billion versus Broadcom’s $10.8 billion in Q2 alone, and I want the custom-silicon franchise that Google, Meta, OpenAI, and Anthropic have all contracted for gigawatts of compute.

The Risk I Am Not Ignoring Customer concentration is real. A handful of hyperscalers drive the AI segment, and a P/E of 61 leaves no room for a stumble. The stock is already down from $495 at the Q2 filing to $378.16 today. That drawdown is precisely why I am adding. The 8 consecutive EPS beats tell me operational execution is intact while the multiple compresses.

As long as this company converts nearly half its revenue into free cash and returns it, I will keep buying every dip the market hands me.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Posted by Defense World Staff on Jul 21st, 2026

Future Fund LLC purchased a new stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund purchased 9,239 shares of the semiconductor manufacturer’s stock, valued at approximately $2,860,000.

Other large investors also recently made changes to their positions in the company. Aire Advisors LLC lifted its stake in shares of Broadcom by 80.6% during the 1st quarter. Aire Advisors LLC now owns 1,876 shares of the semiconductor manufacturer’s stock worth $581,000 after purchasing an additional 837 shares during the period. Kera Capital Partners Inc. increased its stake in Broadcom by 0.5% in the first quarter. Kera Capital Partners Inc. now owns 24,357 shares of the semiconductor manufacturer’s stock valued at $7,539,000 after purchasing an additional 128 shares during the last quarter. Cornerstone Planning Group LLC increased its stake in Broadcom by 13.7% in the first quarter. Cornerstone Planning Group LLC now owns 2,935 shares of the semiconductor manufacturer’s stock valued at $908,000 after purchasing an additional 353 shares during the last quarter. Gryphon Financial Partners LLC increased its stake in Broadcom by 13.6% in the first quarter. Gryphon Financial Partners LLC now owns 29,605 shares of the semiconductor manufacturer’s stock valued at $9,163,000 after purchasing an additional 3,539 shares during the last quarter. Finally, Arcus Capital Partners LLC lifted its position in Broadcom by 64.9% during the first quarter. Arcus Capital Partners LLC now owns 2,348 shares of the semiconductor manufacturer’s stock worth $727,000 after buying an additional 924 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Insider Buying and Selling In related news, insider Mark David Brazeal sold 25,000 shares of the firm’s stock in a transaction dated 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 sale, the insider directly 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 filing with the SEC, which can be accessed through this link. Also, Director Justine Page sold 1,602 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Wall Street Analyst Weigh In Several analysts have commented on the company. Cantor Fitzgerald restated an “overweight” rating and issued a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. TD Cowen restated a “buy” rating and issued a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. 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. Bank of America lifted their price target on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $525.00 price objective on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $493.24.

Get Our Latest Research Report on Broadcom

Broadcom Trading Up 2.0% Shares of AVGO stock opened at $378.16 on Tuesday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a fifty-two week low of $273.00 and a fifty-two week high of $495.00. The firm’s 50 day moving average price is $400.28 and its two-hundred day moving average price is $365.62. The stock has a market cap of $1.80 trillion, a price-to-earnings ratio of 63.03, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the prior year, the business earned $1.58 earnings per share. The business’s quarterly revenue was up 47.9% compared to the same quarter last year. On average, analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 43.33%.

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

Positive Sentiment: Morgan Stanley said Broadcom remains one of its preferred ways to play the AI infrastructure buildout, calling AVGO an attractive risk-reward name after the recent semiconductor pullback. Broadcom stock gains 2% today: here’s why Positive Sentiment: Analysts and market commentary highlighted Broadcom as a high-cash-flow AI chip stock that could benefit as investors look for quality names amid market volatility. 4 High Cash-Producing AI Chip Stocks to Buy Amid Market Uncertainties Positive Sentiment: Broadcom’s AI business is being viewed as a key driver of the investment case, with reports noting strong AI chip revenue growth and a larger shift toward AI-related mix. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off Positive Sentiment: Broadcom also announced a major infrastructure software deal with Standard Chartered to modernize banking cloud operations across 54 markets, which supports its VMware-based software revenue stream. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Neutral Sentiment: Broadcom was included in broader “buy the dip” chip-sector commentary as investors looked for value after the recent memory and AI semiconductor sell-off. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Negative Sentiment: Recent articles also noted that semiconductor stocks had fallen into a bear market after a sharp index decline, reflecting ongoing sectorwide pressure that could cap gains for AVGO. Semiconductor stocks enter bear market: Is bubble burst next? 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 The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story 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.

« PREVIOUS HEADLINECalifornia Public Employees Retirement System Sells 453,643 Shares of CenterPoint Energy, Inc. $CNP

NEXT HEADLINE »Gen Digital Inc. $GEN Holdings Raised by Fifth Third Bancorp

AXS Investments LLC increased its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 59.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,834 shares of the semiconductor manufacturer’s stock after buying an additional 2,535 shares during the period. AXS Investments LLC’s holdings in Broadcom were worth $2,115,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Sovran Advisors LLC lifted its stake in shares of Broadcom by 121.3% in the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock valued at $10,507,000 after buying an additional 16,789 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. increased its position in shares of Broadcom by 406.1% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer’s stock worth $4,151,000 after acquiring an additional 9,624 shares in the last quarter. Aspiriant LLC increased its position in shares of Broadcom by 18.5% during the fourth quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer’s stock worth $4,158,000 after acquiring an additional 1,872 shares in the last quarter. World Investment Advisors raised its holdings in shares of Broadcom by 16.1% in the 4th quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer’s stock worth $61,505,000 after acquiring an additional 24,703 shares during the last quarter. Finally, Western Financial Corp CA raised its holdings in shares of Broadcom by 90.5% in the 4th quarter. Western Financial Corp CA now owns 6,481 shares of the semiconductor manufacturer’s stock worth $2,243,000 after acquiring an additional 3,079 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth AVGO has been the topic of several recent research reports. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Royal Bank Of Canada boosted their price objective on Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a report on Thursday, June 4th. Wall Street Zen downgraded Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Truist Financial raised their target price on Broadcom from $545.00 to $550.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Finally, Susquehanna reiterated a “positive” rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $493.24.

View Our Latest Stock Report on Broadcom

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

Positive Sentiment: Morgan Stanley said Broadcom remains one of its preferred ways to play the AI infrastructure buildout, calling AVGO an attractive risk-reward name after the recent semiconductor pullback. Broadcom stock gains 2% today: here’s why Positive Sentiment: Analysts and market commentary highlighted Broadcom as a high-cash-flow AI chip stock that could benefit as investors look for quality names amid market volatility. 4 High Cash-Producing AI Chip Stocks to Buy Amid Market Uncertainties Positive Sentiment: Broadcom’s AI business is being viewed as a key driver of the investment case, with reports noting strong AI chip revenue growth and a larger shift toward AI-related mix. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off Positive Sentiment: Broadcom also announced a major infrastructure software deal with Standard Chartered to modernize banking cloud operations across 54 markets, which supports its VMware-based software revenue stream. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Neutral Sentiment: Broadcom was included in broader “buy the dip” chip-sector commentary as investors looked for value after the recent memory and AI semiconductor sell-off. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Negative Sentiment: Recent articles also noted that semiconductor stocks had fallen into a bear market after a sharp index decline, reflecting ongoing sectorwide pressure that could cap gains for AVGO. Semiconductor stocks enter bear market: Is bubble burst next? Broadcom Trading Up 2.0% Shares of AVGO stock opened at $378.16 on Tuesday. Broadcom Inc. has a 52-week low of $273.00 and a 52-week high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company has a 50-day simple moving average of $400.28 and a two-hundred day simple moving average of $365.62. The company has a market capitalization of $1.80 trillion, a price-to-earnings ratio of 63.03, a PEG ratio of 0.65 and a beta of 1.45.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business posted $1.58 EPS. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. Research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were 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 was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Insiders Place Their Bets In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the company’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 completion of the transaction, the insider owned 194,989 shares in the company, valued at $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 value of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by insiders.

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.

Further Reading Five stocks we like better than Broadcom The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story 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.

Posted by Defense World Staff on Jul 21st, 2026

Angeles Wealth Management LLC grew its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 9.2% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 42,884 shares of the semiconductor manufacturer’s stock after purchasing an additional 3,607 shares during the period. Broadcom makes up about 0.7% of Angeles Wealth Management LLC’s portfolio, making the stock its 24th biggest position. Angeles Wealth Management LLC’s holdings in Broadcom were worth $13,273,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC boosted its stake 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 lifted its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 71 shares during the last quarter. SWAN Capital LLC lifted its holdings in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 55 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the 4th quarter worth about $33,000. Finally, Family CFO Inc purchased a new position in shares of Broadcom during the 4th quarter worth about $35,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Trading Up 2.0% Shares of NASDAQ AVGO opened at $378.16 on Tuesday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business has a fifty day simple moving average of $400.28 and a two-hundred day simple moving average of $365.62. The firm has a market cap of $1.80 trillion, a PE ratio of 63.03, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45. Broadcom Inc. has a twelve month low of $273.00 and a twelve month high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business’s revenue was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.58 EPS. Analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio is 43.33%.

Analyst Upgrades and Downgrades AVGO has been the topic of a number of recent analyst reports. Wells Fargo & Company reissued an “overweight” rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. JPMorgan Chase & Co. upped their target price on Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Bank of America increased their price target on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Royal Bank Of Canada raised their price target on Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 4th. Finally, Oppenheimer restated an “outperform” rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $493.24.

View Our Latest Report on Broadcom

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

Positive Sentiment: Morgan Stanley said Broadcom remains one of its preferred ways to play the AI infrastructure buildout, calling AVGO an attractive risk-reward name after the recent semiconductor pullback. Broadcom stock gains 2% today: here’s why Positive Sentiment: Analysts and market commentary highlighted Broadcom as a high-cash-flow AI chip stock that could benefit as investors look for quality names amid market volatility. 4 High Cash-Producing AI Chip Stocks to Buy Amid Market Uncertainties Positive Sentiment: Broadcom’s AI business is being viewed as a key driver of the investment case, with reports noting strong AI chip revenue growth and a larger shift toward AI-related mix. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off Positive Sentiment: Broadcom also announced a major infrastructure software deal with Standard Chartered to modernize banking cloud operations across 54 markets, which supports its VMware-based software revenue stream. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Neutral Sentiment: Broadcom was included in broader “buy the dip” chip-sector commentary as investors looked for value after the recent memory and AI semiconductor sell-off. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Negative Sentiment: Recent articles also noted that semiconductor stocks had fallen into a bear market after a sharp index decline, reflecting ongoing sectorwide pressure that could cap gains for AVGO. Semiconductor stocks enter bear market: Is bubble burst next? Insider Buying and Selling at Broadcom In other Broadcom news, Director Harry L. You bought 1,000 shares of the business’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the transaction, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The 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. Insiders own 1.90% of the company’s stock.

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 The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story 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.

« PREVIOUS HEADLINEVisa Inc. $V Stock Position Cut by Baader Bank Aktiengesellschaft

NEXT HEADLINE »Assetmark Inc. Buys 17,382 Shares of Broadcom Inc. $AVGO

Intel (NASDAQ:INTC | INTC Price Prediction) shares are up 6% to $102.53 in early Tuesday trading, leading a broad chip rebound after a preview note from RBC Capital Markets flagged a likely Q2 revenue beat. The move extends day two of a semiconductor rally following last week’s rout.

Advanced Micro Devices (NASDAQ:AMD) stock is up 4% to $523, while Broadcom (NASDAQ:AVGO) shares are climbing 3% to $390. The iShares Semiconductor ETF (NASDAQ:SOXX), which holds all three names, is up 4% to $547.

The rally lines up with strength overseas. South Korea’s Kospi closed up 3.6%, Japan’s Nikkei rose 3.3%, and Taiwan gained 4.2%, per Yahoo Finance and AP reports.

RBC’s Q2 Beat Call Sets the Tone for Intel RBC Capital Markets, previewing Intel’s Thursday earnings, told clients to expect a 5% Q2 revenue beat, a 3% to 5% guidance raise, and gross margins 1 to 2 points above expectations, citing server-CPU strength. Intel also confirmed Data Center Group layoffs as part of an efficiency push, with more color expected on the call.

To be clear, RBC left its INTC rating unchanged. RBC maintains a Sector Perform rating with an $80 price target, which sits below where Intel stock trades today, and the firm warned that Intel’s 60x-plus forward earnings multiple already reflects much of the optimism.

The setup is consistent with recent operating trends. Intel’s last reported quarter delivered non-GAAP EPS of $0.29 on revenue of $13.577 billion, with Data Center and AI revenue up 22% year over year. Polymarket traders currently assign an 84% probability of an earnings beat this week.

AMD Rides Analyst Upgrades, Broadcom Follows the Tape AMD stock is extending Monday’s momentum after two aggressive analyst calls. Rosenblatt named AMD a top pick and raised its price target to $665 from $490, and UBS lifted its target to $700 ahead of AMD’s AI conference this week.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

AMD shares were up 135% year to date heading into today, backed by Q1 2026 revenue of $10.25 billion and 38% year-over-year growth. CEO Lisa Su has pointed to accelerating AI infrastructure demand, MI450 Series traction, and a Meta Platforms (NASDAQ:META) 6 gigawatt deployment as key drivers.

Broadcom shares are along for the ride. Broadcom last reported AI semiconductor revenue of $10.80 billion, up 143% year over year, and guided Q3 FY2026 AI semiconductor revenue to roughly $16 billion. The $30 billion multiyear Apple (NASDAQ:AAPL) chip agreement through 2031, announced July 8, remains a live tailwind.

Sector Breadth and Recent Context The bounce comes after a challenging stretch. Intel stock is down 28% over the past month, and the SOXX ETF fell 18% over the same window, so today’s rally reads as a reset rather than a breakout. Note that SOXX is concentrated in a small number of large chipmakers, so single-name news can swing it hard.

Breadth is showing up elsewhere in the group. NVIDIA (NASDAQ:NVDA), Marvell Technology (NASDAQ:MRVL), Taiwan Semiconductor (NYSE:TSM), SK Hynix (NASDAQ:SKHY), and Nebius (NASDAQ:NBIS) are all catching a bid alongside the majors. U.S. chip names are shrugging off higher oil prices tied to the U.S.-Iran conflict for now.

What to Watch Intel’s earnings report on Thursday, July 23 is the next real test. Investors can watch for whether management confirms RBC’s guidance-raise thesis, quantifies the Data Center Group cuts, and holds gross margin above the 39% Q2 outlook already on the tape.

The AMD AI conference this week is another catalyst worth tracking, particularly for any commentary on MI450 volumes and hyperscaler deployments. Momentum traders may keep INTC, AMD, and AVGO active into the close.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Here is a prediction that will sound outlandish today: A decade from now, Broadcom (AVGO +1.90%) will be worth more than both Apple (AAPL 2.11%) and Microsoft (MSFT +2.21%).

At the moment, that looks like a stretch. Broadcom carries a market value of around $1.76 trillion, while Apple sits near $4.9 trillion and Microsoft close to $2.9 trillion. To pass them, Broadcom would have to nearly triple in value while the two giants tread water. I think it could happen, and the reason is that the value in technology is shifting.

Image source: Getty Images.

The case for Broadcom on top Broadcom has become one of the essential suppliers of the artificial intelligence (AI) era. It designs the custom chips that companies like Alphabet, Meta Platforms, and Anthropic use to run their AI systems, and it dominates the networking gear that ties thousands of those chips together inside a data center. Management has projected that custom AI chip revenue will exceed $100 billion annually by 2027, and demand continues to grow as major AI players race to build more computing power.

That is the key to my prediction. The AI build-out is arguably the largest infrastructure project of our lifetime, and Broadcom sells the picks and shovels at its center. Apple and Microsoft are magnificent businesses, but their growth engines, iPhones and enterprise software, are more mature. Broadcom is leveraged directly to the raw expansion of AI compute, which is growing far faster. When the fastest-growing slice of an industry compounds long enough, the leaderboard eventually reshuffles.

Today's Change

(

1.90

%) $

7.06

Current Price

$

377.88

Why I could be wrong I will be honest about the risks, because a 10-year call is humbling. Apple and Microsoft are cash machines with enormous ecosystems and their own AI ambitions, and either could reaccelerate. Broadcom, by contrast, is tied to the semiconductor cycle, which booms and busts, and much of its growth depends on a handful of giant customers. If those customers ever design more chips in-house, or if AI spending cools, Broadcom's trajectory could stall in a hurry. A decade is a long time, and anything can go wrong.

Today's Change

(

-2.11

%) $

-7.05

Current Price

$

326.69

Predictions like this are meant to provoke thought, not to be taken as gospel. Whether Broadcom actually overtakes Apple and Microsoft or not, the deeper point stands: The center of gravity in technology is moving toward AI infrastructure, and Broadcom is one of the purest ways to own that shift. I think that gives it a longer and steeper growth runway than the aging giants above it. Own it for that runway, keep the cyclicality in mind, and let the next 10 years settle the bet.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Broadcom, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

With gains of just 7% so far this year, Broadcom (AVGO +1.90%) stock has been underperforming the broader semiconductor sector in 2026. The PHLX Semiconductor Sector, for comparison, has jumped 58% this year.

The stock's expensive valuation explains Broadcom's underperformance. After all, it is trading at 62 times trailing earnings. Of course, Broadcom delivered an impressive 54% year-over-year increase in its earnings per share in the second quarter of fiscal 2026 (which ended May 3). However, there are companies with much faster earnings growth trading at lower multiples.

So, Broadcom needs to deliver significant acceleration in earnings growth to give its stock a shot in the arm. The good news for investors is that the next big catalyst for Broadcom stock could arrive soon, courtesy of Meta Platforms (META 0.06%).

Image source: The Motley Fool.

Meta Platforms is poised to go big on in-house artificial intelligence (AI) chips According to a Reuters report, Meta Platforms will reportedly start manufacturing an in-house AI chip, codenamed Iris, from September this year. An internal memo viewed by Reuters states that Meta aims to boost its AI data center capacity to 14 gigawatts (GW) by next year, with its Iris chips playing a central role in that expansion.

Today's Change

(

1.90

%) $

7.06

Current Price

$

377.88

What's more, Iris is reportedly set to be the first generation of the tech giant's in-house Meta Training and Inference Accelerators (MTIA), which the company relies on to power AI functions on Facebook and Instagram. Reuters adds that the testing of the chip has been completed successfully. This is great news for Broadcom, which is partnering with Meta on the MTIA program.

In April, Broadcom announced a "multi-year, multi-generation strategic partnership" with Meta to help the Magnificent Seven company design custom silicon to power its AI data centers. Broadcom was poised to deploy 1 gigawatt (GW) of computing capacity in the first phase of the partnership. However, it now appears that Broadcom could end up rolling out significantly more AI computing capacity with Meta.

It is worth noting that Meta Platforms has increased its 2026 capital expenditure guidance to a range of $125 billion to $145 billion from the prior range of $115 billion to $135 billion. Broadcom could benefit from this aggressive capital spending to support the rollout of Meta's AI data centers.

Broadcom can post stronger-than-expected growth in the second half When Broadcom released its fiscal Q2 results last month, it reported a 48% year-over-year increase in revenue to $22.2 billion. The company's fiscal Q3 revenue guidance of $29.4 billion points to a significantly stronger year-over-year increase of 84%. Even better, consensus estimates project a 94% year-over-year revenue jump in fiscal Q4.

However, don't be surprised to see Broadcom clocking bigger gains as key customers like Meta accelerate their AI infrastructure rollout. Moreover, Broadcom trades at just 20 times forward earnings, and its bottom-line growth is poised to remain solid in the future following an estimated jump of 70% this fiscal year to $11.62 per share.

Data by YCharts

Assuming Broadcom trades at even 30 times earnings at the end of fiscal 2028 and its earnings per share increase to $25.85, as shown in the chart above, its stock price will jump to $775. That's a potential jump of 107% from current levels, which is why investors should consider buying this AI stock before it steps on the gas in the second half of 2026.

The AI trade has been the single biggest force in the market, and nowhere is that clearer than in semiconductors. The chips that train and run artificial intelligence sit at the center of trillions of dollars in spending, and even after a bumpy stretch this summer, the build-out shows no sign of slowing.

The smartest way to play it is to own different links in the chip supply chain rather than betting on one name. Here are five semiconductor stocks positioned to outperform, each capturing a different piece of the AI boom.

Image source: Getty Images.

1. Nvidia Nvidia (NVDA +0.62%) remains the engine of the entire AI trade. Its new Vera Rubin platform has ramped into full production, its data center revenue recently grew more than 90% from a year earlier, and management says it has demand visibility of roughly $1 trillion through 2027. The stock cooled off this summer, which to me looks more like a breather than a breakdown, given how much AI infrastructure the world is still building. When a company is selling every chip it can make, temporary weakness tends to be a gift.

Today's Change

(

0.62

%) $

1.26

Current Price

$

204.07

2. Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing (TSM +1.07%) is the company that physically builds nearly every advanced AI chip, including Nvidia's. Its leadership called AI demand "extremely robust" and raised its growth outlook above 30% while pouring another $100 billion into its Arizona campus and ramping up cutting-edge 2-nanometer production. Because there is no real substitute for its factories, Taiwan Semiconductor is the closest thing to a toll booth on the whole AI economy.

Today's Change

(

1.07

%) $

4.26

Current Price

$

402.63

3. Broadcom Broadcom (AVGO +2.56%) is the other giant of AI silicon, and it wins in two ways. It designs the custom chips that big tech names use to build their own AI systems, and it dominates the networking gear that connects thousands of those chips inside a data center. Management has pointed to a path toward $100 billion in annual AI revenue, and its large software business adds ballast. Broadcom is how you own the AI trade beyond just graphics chips.

Today's Change

(

2.56

%) $

9.50

Current Price

$

380.32

4. Micron Technology Micron Technology (MU +3.09%) is the memory play and the boldest pick on this list. AI accelerators are useless without high-bandwidth memory sitting beside them, and that memory has been in short supply, a squeeze analysts expect to last into 2027. The catch is that memory stocks recently tumbled into a bear market on fears that the cycle is peaking. I would frame that pullback as an opportunity: If the shortage holds through the summer, Micron could rebound sharply. Just know this is the most volatile name here, because memory booms and busts hard.

5. ASML ASML Holding (ASML 0.61%) is the ultimate pick-and-shovel bet. It holds a near-monopoly on the advanced lithography machines required to make cutting-edge chips, so every fab that Taiwan Semiconductor, Samsung, or Intel (INTC +3.36%) builds needs its equipment. The company just posted record bookings driven by AI demand and raised its full-year forecast. Its next-generation High-NA machines, which sell for close to €400 million (roughly $457.5 million USD) each, are now being used in high-volume production. Own ASML, and you profit no matter which chip company wins.

The risks worth naming None of this comes without danger. Semiconductors are deeply cyclical, and the AI trade has pushed valuations high across the board, so any sign that spending is slowing could hit these stocks hard and all at once. Memory, in particular, is prone to violent swings, as Micron's recent drop shows. Taiwan Semiconductor and ASML also carry geopolitical risk tied to Taiwan, China, and export rules. These are growth stocks riding a powerful but unproven-at-this-scale trend.

Rather than guessing which sole chip stock will win the AI race, I like owning the value chain: Nvidia for the AI brains, Taiwan Semiconductor and ASML for the manufacturing muscle behind every chip, Broadcom for custom silicon and networking, and Micron for the memory that makes it all run. Each is poised to benefit as AI spending marches on this summer and beyond. Buy gradually, mind the valuations, and let the build-out, not the daily swings, guide your conviction.

Broadcom AVGO stock rose 2% on Monday after Morgan Stanley reiterated its overweight rating on the semiconductor company and Nvidia, highlighting both stocks as preferred ways to gain exposure to the artificial intelligence infrastructure buildout.

The brokerage said memory-related opportunities were improving but maintained that Nvidia and Broadcom continue to offer the most attractive risk-reward profile within its semiconductor coverage universe.

“This remains an unusual memory cycle, as data center strength is the only cause – which means that as we saw in April there are mixed signals elsewhere that may be a false flag. Memory isn’t the best risk reward in our coverage – which we think is NVDA/ AVGO – but it’s catching up fast.”

In a previous research note, Morgan Stanley addressed concerns that MediaTek could meaningfully reduce Broadcom’s role in supplying Google’s tensor processing units (TPUs).

Analyst Joseph Moore told investors that the firm expects Broadcom to retain roughly 80% of Google's TPU share over time, arguing that projections calling for a major loss of market share are premature.

The brokerage stated that “MediaTek participation is real, but not disruptive,” drawing comparisons to concerns raised last year over Marvell and Alchip's involvement in Amazon's Trainium chip program.

While Morgan Stanley acknowledged that MediaTek has a credible opportunity due to Google's focus on cost efficiency and supplier diversification, it argued that achieving significant cost savings may prove difficult.

The firm pointed to Broadcom's existing high-bandwidth memory supply agreements and highlighted execution risks tied to MediaTek's packaging approach.

According to Morgan Stanley, its Taiwan semiconductor team continues to expect MediaTek to rely on CoWoS packaging capacity for 2-nanometer TPU production, while EMIB packaging technology remains largely unproven at the scale required by Google.

The investment bank estimated that Broadcom could generate approximately $120 billion in AI revenue in fiscal 2027.

Of that total, TPU-related revenue is projected to contribute around $80 billion.

However, the firm expects TPU's share of Broadcom's AI business to decline to roughly 60% over time as additional application-specific integrated circuit (ASIC) customers scale their deployments.

Broadcom's AI growth prospects are being complemented by continued strength in its relationship with Apple.

Earlier this month, Broadcom extended its long-standing partnership with Apple through 2031 under a new multi-year agreement that expands collaboration on custom silicon products.

The deal provides Broadcom with greater long-term revenue visibility from one of its most important customers.

Analysts estimate that Apple accounts for approximately 20% of Broadcom's annual revenue.

Broadcom has supplied Apple with critical wireless and networking components for years, including radio frequency chips that support cellular connectivity, as well as Wi-Fi and Bluetooth chips used across Apple's device ecosystem.

Although Apple has increasingly developed chips internally, including its C1 modem, the company continues to rely on Broadcom for several key wireless and radio-frequency technologies.

The renewed agreement builds on a multibillion-dollar partnership announced in 2023 under which Broadcom agreed to develop and manufacture 5G radio frequency components for Apple.

Anthropic, the AI lab behind the Claude models, has filed confidentially to go public at a valuation reportedly nearing $1 trillion, and even Elon Musk recently called it "obviously currently the leader in AI." The trouble is you can't buy Anthropic yet. Most people looking for a back door point to its big shareholders, but there is another way in: the companies cashing Anthropic's enormous checks.

Anthropic's revenue run rate has rocketed past $30 billion, and it's spending staggering sums on chips and computing power. Here are two suppliers, worth about $1,000 split between them, that profit directly from that spending.

Image source: Getty Images.

1. Broadcom Broadcom (AVGO +2.10%) makes the custom chips that power much of the AI world, and Anthropic just became one of its most important customers. Broadcom designs the Tensor Processing Units, or TPUs, that Google offers in its cloud, and Anthropic has committed to an enormous amount of that capacity: roughly 1 gigawatt coming online in 2026 and about 3.5 gigawatts more starting in 2027. To put that in perspective, analysts at Mizuho estimated Broadcom could collect around $21 billion of AI revenue tied to Anthropic in 2026 and roughly $42 billion in 2027.

That single relationship helps explain why Broadcom's leadership sees its custom AI chip business topping $100 billion in annual revenue by 2027. Owning Broadcom gives you exposure to Anthropic's computing buildout, plus a diversified giant that also dominates AI networking gear and runs a large, steady software business. You're buying an arms dealer to the entire AI race, with Anthropic as one of its biggest new clients.

Today's Change

(

2.10

%) $

7.81

Current Price

$

378.63

2. SpaceX Space Exploration Technologies (SPCX 1.45%), now publicly traded, is the more unexpected pick, and it comes with a twist. Anthropic agreed to pay roughly $1.25 billion per month to lease the Colossus supercomputer through May 2029, a contract worth more than $40 billion in total. That data center, packed with hundreds of thousands of chips, was built by Musk's AI operation, which is now part of SpaceX. In other words, one AI leader is effectively renting its computing muscle from another, and SpaceX shareholders collect the rent.

It's a remarkable arrangement given that Musk once dismissed Anthropic's chances, then publicly admitted he was wrong. For investors, SpaceX offers a slice of that Anthropic revenue stream on top of its core rocket and Starlink businesses. It is the landlord to the AI leader, and that lease is a multiyear, multibillion-dollar tailwind.

Something investors should consider I want to be straight about the trade-offs, because these are different from owning Anthropic's actual shareholders. Neither Broadcom nor SpaceX owns a piece of Anthropic, so you won't get a windfall from the IPO itself the way its equity backers might. Your upside comes from Anthropic's staying a huge customer, and that isn't guaranteed. Anthropic is reportedly exploring building its own chips, including talks with Samsung, which could eventually reduce its reliance on outside suppliers.

There's also the familiar circularity of the AI boom, where the same dollars cycle among a handful of companies, flattering everyone's numbers while the good times last. SpaceX carries an enormous valuation and real volatility as a newly public stock, and Anthropic, for all its momentum, is still burning cash to fund this spending. This is exposure to a promising trend, not a sure thing.

If you have about $1,000 and want to ride Anthropic's rise before it goes public, splitting it between Broadcom and SpaceX is a creative way to do it. Rather than betting on a stake you can't buy, you own the suppliers Anthropic is paying billions to for chips and computing, while getting two powerful businesses in their own right. My honest suggestion is to buy each for its broader story first, the custom-chip empire at Broadcom and the launch-and-Starlink machine at SpaceX, and treat the Anthropic revenue as a compelling bonus. That way you benefit whether the IPO dazzles or simply keeps the checks coming.