Broadcom (NASDAQ:AVGO) Announces Earnings Results, Beats Expectations By $0.02 EPS

Broadcom (NASDAQ:AVGO) issued its quarterly earnings data on Wednesday. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02, FiscalAI reports. The business had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%.

Broadcom Stock Performance

Shares of NASDAQ AVGO traded up $3.69 during midday trading on Wednesday, reaching $317.53. 29,624,257 shares of the stock were exchanged, compared to its average volume of 25,141,588. The firm has a 50-day simple moving average of $335.17 and a two-hundred day simple moving average of $342.86. The firm has a market cap of $1.51 trillion, a price-to-earnings ratio of 66.71, a PEG ratio of 1.02 and a beta of 1.22. Broadcom has a twelve month low of $138.10 and a twelve month high of $414.61. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76.

Broadcom Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were given a dividend of $0.65 per share. This is a boost from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, December 22nd. Broadcom’s payout ratio is presently 54.62%.

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 130,000 shares of Broadcom stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $326.02, for a total transaction of $42,382,600.00. Following the transaction, the chief executive officer owned 595,638 shares in the company, valued at $194,189,900.76. The trade was a 17.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Kirsten M. Spears sold 30,000 shares of the stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total value of $10,434,600.00. Following the completion of the transaction, the chief financial officer owned 277,237 shares of the company’s stock, valued at $96,428,573.34. The trade was a 9.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 779,101 shares of company stock valued at $283,804,325. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in the business. State Street Corp grew its stake in Broadcom by 2.7% during the 4th 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 in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares in the last quarter. Amundi increased its position in shares of Broadcom by 7.1% in the 4th quarter. Amundi now owns 23,787,630 shares of the semiconductor manufacturer’s stock valued at $8,232,897,000 after purchasing an additional 1,570,814 shares during the last quarter. California Public Employees Retirement System increased its position in shares of Broadcom by 17.4% in the 4th quarter. California Public Employees Retirement System now owns 13,616,185 shares of the semiconductor manufacturer’s stock valued at $4,712,562,000 after purchasing an additional 2,016,804 shares during the last quarter. Finally, Cardano Risk Management B.V. raised 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 purchasing an additional 11,414,701 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts expect accelerating revenue growth driven by AI chip and data‑center demand, and Broadcom highlighted new Wi‑Fi 8 chips in the quarter — a growth narrative that supports upside if guidance and margins beat. Broadcom set to report earnings after the bell
• Positive Sentiment: Jefferies and other Wall Street bulls continue to rate AVGO highly (Jefferies reaffirmed BUY and big price targets), reinforcing upside expectations if AI revenue momentum sustains. Broadcom Inc. (AVGO) Leads AI and Networking Expansion, Jefferies Reaffirms Buy
• Positive Sentiment: Sector flow into AI-themed semiconductor ETFs (SMH/SOXX) highlights Broadcom as a beneficiary of the estimated $650B+ AI capex cycle — demand tailwind for networking and AI interconnect chips. The $650 Billion AI Surge Is Here—2 Semiconductor ETFs to Play It
• Neutral Sentiment: Options and traders expect a sizable post‑earnings swing, which can amplify short‑term moves regardless of fundamentals — heightened volatility risk around the print. Here’s How Much Traders Expect Broadcom Stock To Move After Earnings
• Neutral Sentiment: Previews expect record revenue but flag close scrutiny of margins and profitability on XPU/networking mix — results may be a catalyst either way. Broadcom Q1 Preview: Record Revenue Expected, But Stock Is Looking ‘On the Ropes’
• Neutral Sentiment: Market commentary notes AVGO is off its recent highs and being actively debated by investors — positioning and consensus price targets (median ~$454) matter for post‑earnings reaction. Broadcom (AVGO) Is Trading 25% Below Its Recent High: Here’s Why $454 Is the 12-Month Price Target
• Negative Sentiment: RBC issued a pessimistic forecast for AVGO’s stock price, adding downside analyst pressure if results/guidance disappoint. Royal Bank Of Canada Issues Pessimistic Forecast for Broadcom (NASDAQ:AVGO) Stock Price
• Negative Sentiment: Governance/compensation headlines: a reported $205M CEO pay package and heavy insider selling are likely to attract negative attention and could weigh on sentiment if investors view it as misaligned with shareholders. Broadcom Inc. ($AVGO) CEO 2025 Pay Revealed
• Negative Sentiment: Prominent commentators (e.g., Jim Cramer) and coverage highlight valuation and margin risks — if guidance is cautious, profit‑taking could accelerate. Jim Cramer on Broadcom: “This Is One of Those That’s Just Too Hard to Own Right Now”

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. TD Cowen reiterated a “buy” rating on shares of Broadcom in a report on Friday, December 12th. JPMorgan Chase & Co. upped their price objective on Broadcom from $400.00 to $475.00 and gave the company an “overweight” rating in a research report on Friday, December 12th. Bank of America increased their target price on Broadcom from $460.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Rosenblatt Securities boosted their target price on shares of Broadcom from $400.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, December 9th. Finally, Mizuho set a $480.00 target price on shares of Broadcom and gave the stock an “outperform” rating in a research report on Friday, January 9th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $432.13.

Broadcom Company Profile

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.