Broadcom (NASDAQ:AVGO) Stock Price Up 4.7% – Should You Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) were up 4.7% on Thursday . The company traded as high as $388.68 and last traded at $387.84. Approximately 23,383,137 shares traded hands during trading, a decline of 9% from the average daily volume of 25,711,832 shares. The stock had previously closed at $370.32.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s reported multiyear memorandum of understanding with Samsung, valued at more than $200 billion, is expected to provide high-bandwidth memory and advanced manufacturing support for Broadcom’s next-generation AI accelerators through 2030. The arrangement could improve supply-chain capacity and strengthen Broadcom’s position in AI data-center infrastructure. Samsung AI chip pact article
• Positive Sentiment: Apple announced a multiyear agreement with Broadcom as part of its American Manufacturing Program. The partnership is expected to support more than $30 billion of investment in a U.S.-based silicon supply chain and advanced manufacturing equipment, adding a major customer-related opportunity. Apple manufacturing agreement article
• Positive Sentiment: Semiconductor ETFs attracted significant new cash as chip stocks rallied on strong technology earnings, potentially increasing passive and sector-wide demand for AVGO shares. Semiconductor ETF flows article
• Positive Sentiment: Analysts continue to highlight Broadcom’s AI accelerators, networking products, strong bookings, and long-term contracts as drivers of semiconductor growth into fiscal 2027. Consensus estimates imply additional upside, while upward earnings revisions could provide near-term support. Broadcom analyst upside article
• Neutral Sentiment: Commentary characterizes Broadcom as a relatively safer AI-hardware investment and suggests its infrastructure exposure could benefit from strong Alphabet and broader hyperscaler AI spending. However, these views remain dependent on continued capital-expenditure growth and execution. Broadcom safer AI hardware article
• Negative Sentiment: Broadcom recently underperformed the broader market during a pullback, highlighting sensitivity to elevated expectations. With a high earnings multiple after a powerful multiyear advance, investors may demand continued strong growth to justify the valuation. Broadcom market pullback article

Analyst Upgrades and Downgrades

Several brokerages have issued reports on AVGO. DA Davidson raised their price target on Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, June 4th. UBS Group set a $485.00 price objective on shares of Broadcom and gave the company a “buy” rating in a report on Thursday, June 4th. Truist Financial increased their price objective on shares of Broadcom from $545.00 to $550.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Evercore restated an “outperform” rating and set a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. Finally, Royal Bank Of Canada lifted their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Stock Performance

The company has a fifty day moving average of $394.08 and a two-hundred day moving average of $368.11. The firm has a market capitalization of $1.85 trillion, a price-to-earnings ratio of 64.88, a PEG ratio of 0.74 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating 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 firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm posted $1.58 EPS. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities research analysts predict that Broadcom Inc. will post 10.24 earnings per share 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 paid a $0.65 dividend. The ex-dividend date 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 Buying and Selling at Broadcom

In related news, insider Mark David Brazeal sold 25,000 shares of the firm’s 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 transaction, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This trade represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 in the last three months. 1.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Institutional investors have recently made changes to their positions in the stock. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC increased its position 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 period. SWAN Capital LLC raised its stake 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 in the last quarter. Nvest Wealth Strategies Inc. acquired a new position in Broadcom in the fourth quarter valued at about $33,000. Finally, Family CFO Inc bought a new stake in Broadcom during the fourth quarter worth about $35,000. 76.43% of the stock is currently owned by institutional investors.

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.