Broadcom (NASDAQ:AVGO) Trading Down 1.1% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO) shares fell 1.1% on Wednesday . The company traded as low as $324.20 and last traded at $328.80. 31,603,463 shares were traded during mid-day trading, an increase of 22% from the average session volume of 25,963,641 shares. The stock had previously closed at $332.60.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan lists Broadcom among its favorite chip stocks heading into earnings, reinforcing demand expectations for Broadcom’s AI and custom silicon portfolio. Nvidia, Broadcom, Micron among JPMorgan’s favorite chip stocks going into earnings
• Positive Sentiment: Citi names Broadcom a top pick into earnings, another institutional endorsement supporting expectations for continued AI-driven revenue growth. Nvidia, Broadcom, NXP, Analog Devices are Citi’s top picks going into earnings
• Positive Sentiment: Zacks argues growth investors should buy AVGO, citing above‑average financial growth and AI tailwinds that support multi‑year revenue momentum. Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now
• Positive Sentiment: MarketBeat highlights TSMC’s strong AI-accelerator guidance and Meta’s “Meta Compute” expansion as indirect catalysts for Broadcom’s custom-chip and networking businesses. Why Taiwan Semiconductor and Meta Could Be the Hidden Bull Case for Broadcom
• Neutral Sentiment: Coverage examines whether Broadcom remains reasonably priced after strong multi‑year gains; valuation debate is central—good growth but a rich multiple. Is Broadcom (AVGO) Still Reasonably Priced After A 7x Run In Five Years
• Neutral Sentiment: Articles synthesize broad analyst interest (many buy/outperform ratings and elevated price targets) — supportive for sentiment but already priced into the shares. Broadcom Inc. (AVGO) Is Considered a Good Investment by Brokers: Is That True?
• Negative Sentiment: RBC initiates AVGO at Sector Perform, explicitly flagging margin risk and valuation as reasons for caution despite AI upside — a formal counterpoint to recent bullish calls. RBC initiates Broadcom (AVGO) at sector perform, flags margin and valuation risks despite AI upside
• Negative Sentiment: QuiverQuant summary highlights social‑media debate on margins, geopolitical/cybersecurity risks and heavy insider sales — these narratives can amplify short‑term volatility. Broadcom Inc. Stock (AVGO) Opinions on AI Deals and Geopolitical Risks

Analyst Ratings Changes

A number of research firms have weighed in on AVGO. Mizuho set a $480.00 price target on Broadcom and gave the stock an “outperform” rating in a report on Friday, January 9th. Morgan Stanley upped their price target on shares of Broadcom from $443.00 to $462.00 and gave the stock an “overweight” rating in a research report on Friday, December 12th. KeyCorp restated an “overweight” rating and issued a $500.00 target price (up from $460.00) on shares of Broadcom in a research report on Friday, December 12th. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Finally, Bank of America raised their target price on shares of Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of “Buy” and a consensus target price of $438.61.

Broadcom Stock Down 1.1%

The business’s 50 day moving average is $358.46 and its 200 day moving average is $335.10. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The stock has a market cap of $1.56 trillion, a price-to-earnings ratio of 69.08, a price-to-earnings-growth ratio of 1.17 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $0.08. The business had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.Broadcom’s quarterly revenue was up 28.2% compared to the same quarter last year. During the same period last year, the company earned $1.42 earnings per share. Equities analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

The business 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. The ex-dividend date was Monday, December 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is 54.62%.

Insider Activity at Broadcom

In related news, Director Harry L. You acquired 1,000 shares of the stock in a transaction on Thursday, December 18th. The stock was purchased at an average price of $325.13 per share, for a total transaction of $325,130.00. Following the transaction, the director owned 36,602 shares of the company’s stock, valued at $11,900,408.26. The trade was a 2.81% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 1,928 shares of the stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $327.80, for a total value of $631,998.40. Following the completion of the transaction, the insider owned 23,582 shares in the company, valued at $7,730,179.60. The trade was a 7.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 779,901 shares of company stock valued at $284,069,237. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank bought a new position in Broadcom in the second quarter valued at approximately $18,579,549,000. Vanguard Group Inc. raised its stake in shares of Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after purchasing an additional 6,222,802 shares during the period. Edgewood Management LLC acquired a new position in shares of Broadcom during the second quarter worth about $1,571,438,000. Arrowstreet Capital Limited Partnership raised its position in Broadcom by 499.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after buying an additional 4,694,313 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its stake in Broadcom by 115.5% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 6,017,340 shares of the semiconductor manufacturer’s stock valued at $1,658,680,000 after acquiring an additional 3,224,739 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

About Broadcom

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.