Broadcom (NASDAQ:AVGO) Trading Up 1.7% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) shares shot up 1.7% during mid-day trading on Friday . The stock traded as high as $430.84 and last traded at $427.76. Approximately 14,271,408 shares were traded during trading, a decline of 44% from the average session volume of 25,398,705 shares. The stock had previously closed at $420.57.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand remains the primary catalyst. Analysts highlighted Broadcom’s record quarterly revenue of approximately $22.2 billion, 79% growth in semiconductor revenue, 143% growth in AI semiconductor revenue to $10.8 billion and more than $30 billion in AI bookings. The figures support the view that hyperscaler spending on custom chips, networking and connectivity is still expanding. Is the AI Selloff a Buying Opportunity? The Data Says Yes
• Positive Sentiment: Broadcom is being positioned as a beneficiary of AI infrastructure bottlenecks. Commentary identified networking equipment, optical interconnects and power delivery as supply-constrained areas, with Broadcom named among companies that could benefit as data-center construction accelerates. Other reports described the company as a leading AI infrastructure stock and a potentially attractive long-term chip investment. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026 3 AI Infrastructure Stocks That Could Make You Rich in August
• Positive Sentiment: Product updates add support for Broadcom’s software business. New capabilities for VMware vDefend and Avi Load Balancer are intended to improve cybersecurity, performance and operational efficiency in private-cloud environments, potentially strengthening Broadcom’s infrastructure-software offering as enterprises prepare for AI workloads. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: Broadcom was included in stock screens favoring companies with high returns on equity and strong earnings growth. The favorable fundamental profile supports investor interest, but the articles offered no new company-specific financial data. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally
• Negative Sentiment: Risks include stretched valuation and broader-market concerns. Coverage warned that AI stocks may face a normal pullback after a strong rally, while oil-price increases could revive inflation concerns. One investment firm also disclosed that it sold 3,867 Broadcom shares, though the transaction appears minor relative to the company’s overall market value. SCS Capital Trims Broadcom Stake

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AVGO. Wall Street Zen downgraded Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Royal Bank Of Canada increased their price objective on Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a report on Thursday, June 4th. Mizuho raised their target price on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Finally, Oppenheimer restated an “outperform” rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Trading Up 1.7%

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business has a 50-day simple moving average of $392.99 and a two-hundred day simple moving average of $370.45. The stock has a market cap of $2.04 trillion, a price-to-earnings ratio of 71.29, a P/E/G ratio of 0.82 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (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 company had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period last year, the firm posted $1.58 earnings per share. The business’s revenue was up 47.9% on a year-over-year basis. Equities analysts forecast that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Harry L. You acquired 1,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The stock was bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. State Street Corp increased its stake in shares of Broadcom by 2.7% during the fourth 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 during the period. Geode Capital Management LLC lifted its holdings in Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Broadcom by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares during the period. Finally, Norges Bank bought a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. 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.