Broadcom (NASDAQ:AVGO) Trading Down 5.2% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) traded down 5.2% during mid-day trading on Wednesday . The company traded as low as $335.88 and last traded at $336.00. 9,713,924 shares were traded during mid-day trading, a decline of 56% from the average session volume of 22,009,465 shares. The stock had previously closed at $354.61.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Big-bank endorsements and high price targets from Mizuho, Goldman Sachs and BofA underline strong analyst conviction (price targets ranging roughly $480–$500), supporting medium-term upside and investor confidence.
• Positive Sentiment: Bernstein pushed back on fears about AI competition for Broadcom, reiterating an Outperform view and emphasizing Broadcom’s leadership in AI ASICs — a bullish signal for investors focused on the company’s AI exposure. Bernstein Says AI Competition Fears Around Broadcom Are Overblown
• Positive Sentiment: Broadcom showcased new Wi‑Fi products (BCM4918 APU and Wi‑Fi 8 chipsets) at CES 2026, reinforcing product-cycle drivers outside of AI that can sustain revenue growth. Broadcom Inc. (AVGO) Launches new Wi-Fi Products at CES 2026
• Positive Sentiment: Analysts flag an AI-driven supply crunch and accelerating hyperscaler demand that could boost custom silicon opportunities and pricing power for Broadcom. Broadcom, Marvell In Focus As Semiconductor Analyst Flags AI-Driven Supply Crunch
• Positive Sentiment: Recent bullish coverage and rating upgrades (including Seeking Alpha commentary advocating buying the dip and a specific rating upgrade) keep buy-side narrative intact. Broadcom: 5th XPU Customer, Growth-Adjusted Multiples Compelling (Rating Upgrade)
• Positive Sentiment: Short interest has decreased materially versus mid-December levels, reducing one source of downward pressure and simplifying a potential rebound if sentiment improves.
• Neutral Sentiment: Longer-term price forecasts and bullish buy lists (various outlets projecting multi‑year upside) support a positive thesis but are longer-horizon and less likely to move intraday trade. Broadcom (NASDAQ: AVGO) Stock Price Prediction and Forecast 2026-2030
• Neutral Sentiment: Market commentary lists Broadcom among growth picks and “top stocks” for 2026; useful for positioning but not an immediate catalyst. 25 Stocks to Target (and Avoid) After MLK Day
• Neutral Sentiment: Headline coverage noting recent share gains provides context on momentum but is backward‑looking. Broadcom Inc. (AVGO) Rises Higher Than Market: Key Facts
• Negative Sentiment: Lingering investor worry from Broadcom’s Dec. 11 earnings update — which flagged margin trajectory and triggered a prior sell‑off — remains a near‑term headwind and helps explain today’s pullback.

Wall Street Analyst Weigh In

AVGO has been the subject of several research analyst reports. Susquehanna reiterated a “positive” rating and issued a $450.00 price objective (up previously from $400.00) on shares of Broadcom in a report on Thursday, December 4th. Oppenheimer lifted their price target on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a report on Friday, December 12th. Cowen restated a “buy” rating on shares of Broadcom in a report on Friday, December 12th. KeyCorp reaffirmed an “overweight” rating and set a $500.00 target price (up previously from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $438.00.

Broadcom Trading Down 4.8%

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 50-day moving average of $359.57 and a two-hundred day moving average of $332.57. The company has a market cap of $1.60 trillion, a P/E ratio of 71.07, a price-to-earnings-growth ratio of 1.19 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.08. The firm had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company’s revenue was up 28.2% on a year-over-year basis. During the same period last year, the company earned $1.42 earnings per share. On average, equities research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

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

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 30,000 shares of the stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the sale, the chief financial officer directly owned 277,237 shares in the company, valued at approximately $96,428,573.34. This trade represents a 9.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Charlie B. Kawwas sold 1,928 shares of the business’s stock in a transaction on Wednesday, December 17th. The stock was 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 of the company’s stock, valued at $7,730,179.60. This represents a 7.56% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 779,901 shares of company stock valued at $284,069,237. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently bought and sold shares of AVGO. Vanguard Group Inc. lifted its position in Broadcom by 1.3% during the second 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. State Street Corp raised its stake in Broadcom by 0.5% during the 2nd quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer’s stock valued at $51,071,601,000 after buying an additional 873,963 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Broadcom by 2.1% during the 2nd quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer’s stock valued at $29,827,649,000 after buying an additional 2,226,585 shares during the period. Norges Bank purchased a new position in shares of Broadcom in the 2nd quarter worth $18,579,549,000. Finally, Invesco Ltd. grew its holdings in shares of Broadcom by 1.8% in the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer’s stock worth $12,915,861,000 after acquiring an additional 700,021 shares during the period. 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.