Broadcom (NASDAQ:AVGO) Stock Price Up 3.1% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price was up 3.1% during trading on Tuesday. The stock traded as high as $335.74 and last traded at $332.13. Approximately 16,867,200 shares traded hands during mid-day trading, a decline of 32% from the average session volume of 24,777,615 shares. The stock had previously closed at $322.23.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom was among chip stocks rising in a broader semiconductor rally, alongside gains in Nvidia and AMD. The article notes that concern about potential Chinese chip competition did not deter buyers. NVIDIA Rises 3% Despite AI CEO’s Warning on Chinese Chip Competition; AMD Climbs 5%, Broadcom Gains 3%
• Positive Sentiment: ETF flows were a potential source of support: funds bought a net $183.8 million of Broadcom shares on Friday, with 48 funds buying and 30 selling. ETFs Bought $183.8 Million of Broadcom (AVGO) on Friday
• Positive Sentiment: Several articles point to long-term AI growth potential: Broadcom’s AI-chip revenue is described as tripling year over year, while other coverage highlights anticipated growth in 2027 and demand for custom AI processors. These themes reinforce the bull case, though they are forward-looking commentary. Broadcom Stock Is Up 2,500% in 10 Years. Can the AI Boom Keep It Going? While the Rest of the Market Focuses on the Anthropic IPO, These Are My Top 2 Stocks to Buy in November
• Neutral Sentiment: One comparison favors TSMC for its diversified role manufacturing chips for several major customers, contrasting with Broadcom’s reliance on customers continuing to develop their own processors. This highlights a business risk rather than a new change in fundamentals. Taiwan Semi or Broadcom: If I Could Only Own 1 for the Next 5 Years, It Would Be This
• Negative Sentiment: Valuation remains a concern: one analysis argues Broadcom is a strong company but not attractive at its current price. That could limit upside if anticipated AI growth is already reflected in the shares. Broadcom: Great Company, Not A Great Price

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on AVGO shares. JPMorgan Chase & Co. reissued a “buy” rating on shares of Broadcom in a report on Thursday, September 3rd. HC Wainwright assumed coverage on Broadcom in a research note on Tuesday, October 27th. They set a “buy” rating for the company. Truist Financial decreased their price objective on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. Bank of America decreased their price objective on Broadcom from $530.00 to $460.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. Finally, Rosenblatt Securities reissued a “buy” rating and set a $600.00 price objective on shares of Broadcom in a research note on Tuesday, October 27th. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom has a consensus rating of “Moderate Buy” and an average price target of $530.52.

Broadcom Price Performance

The stock has a market capitalization of $1.59 trillion, a price-to-earnings ratio of 42.42 and a beta of 1.46. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The stock has a fifty day moving average of $351.88 and a 200-day moving average of $366.79.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business’s revenue was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.69 earnings per share. On average, equities research analysts predict that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is currently 33.21%.

Institutional Trading of Broadcom

A number of hedge funds have recently added to or reduced their stakes in AVGO. Core Capital Management & Research inc. acquired a new stake in shares of Broadcom during the second quarter valued at about $31,000. Harborfront Financial Group LLC bought a new position in shares of Broadcom during the second quarter worth about $38,000. DecisionPoint Financial LLC grew its stake in shares of Broadcom by 101.9% in the third quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock worth $36,000 after purchasing an additional 53 shares in the last quarter. Align Financial LLC increased its holdings in shares of Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock valued at $38,000 after purchasing an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC acquired a new position in shares of Broadcom during the 3rd quarter valued at $41,000. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.