Wealthfront Advisers LLC Acquires Shares of 654,462 Broadcom Inc. $AVGO

Wealthfront Advisers LLC acquired a new position in Broadcom Inc. (NASDAQ:AVGO) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 654,462 shares of the semiconductor manufacturer’s stock, valued at approximately $247,223,000. Broadcom accounts for about 0.5% of Wealthfront Advisers LLC’s portfolio, making the stock its 19th largest holding.

Other hedge funds have also modified their holdings of the company. ROSS JOHNSON & Associates LLC grew its holdings in Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares during the period. SWAN Capital LLC raised its stake in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 55 shares during the period. Networth Advisors LLC raised its stake in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 71 shares during the period. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the 4th quarter valued at approximately $33,000. Finally, Harborfront Financial Group LLC purchased a new position in shares of Broadcom during the 2nd quarter valued at approximately $38,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Mizuho remains bullish ahead of earnings, citing Broadcom’s nearly uninterrupted 30-quarter earnings track record, deeply negative investor sentiment, and the possibility that CEO Hock Tan will directly address concerns about custom ASIC competition and Google’s in-house chips. Mizuho is bullish on Broadcom ahead of Sept. 2 earnings
• Positive Sentiment: Broadcom’s partnership with OpenAI on the Jalapeño inference chip highlights demand for specialized AI infrastructure. OpenAI says the chip can deliver substantially better performance per watt than comparison systems, potentially supporting Broadcom’s custom-chip and networking growth. Why BNP thinks Jalapeño could benefit Broadcom stock
• Positive Sentiment: Analysts argue Broadcom offers a better AI risk-reward profile than AMD because of its broader exposure across custom accelerators, networking, and infrastructure software, along with a comparatively lower valuation. Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward?
• Positive Sentiment: A new Kyndryl collaboration expands VMware Cloud Foundation’s reach among enterprise customers, reinforcing Broadcom’s private-cloud and software modernization strategy. Broadcom Kyndryl partnership
• Neutral Sentiment: Royal Bank of Canada reiterated its “Sector Perform” rating, suggesting balanced expectations rather than a strong near-term catalyst. Royal Bank of Canada reiterates Sector Perform
• Negative Sentiment: Broadcom is reportedly considering $70 billion to $80 billion of debt financing for an AI chip-related transaction involving companies including Anthropic. The potential borrowing could accelerate growth but raises leverage, execution, and repayment risks. Broadcom nears $70B debt financing deal
• Negative Sentiment: Investors remain concerned that Google’s and other hyperscalers’ internally designed chips could pressure Broadcom’s custom-silicon revenue. Competition from Marvell, NVIDIA, and AMD adds to the risk, while Broadcom’s elevated earnings multiple leaves less room for disappointment. Marvell and Google custom silicon deal

Broadcom Trading Down 0.7%

Shares of AVGO opened at $368.79 on Friday. Broadcom Inc. has a 52-week low of $287.17 and a 52-week high of $495.00. The stock has a market cap of $1.75 trillion, a PE ratio of 61.47, a price-to-earnings-growth ratio of 0.71 and a beta of 1.45. The firm’s fifty day moving average is $385.07 and its two-hundred day moving average is $376.26. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.58 earnings per share. Research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio is presently 43.33%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on AVGO. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a “buy” rating in a report on Thursday, June 4th. Evercore reiterated an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a research report on Tuesday, May 19th. Royal Bank Of Canada reissued a “sector perform” rating and set a $400.00 target price on shares of Broadcom in a research note on Wednesday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Finally, TD Cowen reiterated a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. Twenty-nine equities research 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 stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $491.97.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Harry L. You bought 1,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares of the company’s stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 61,644 shares of company stock worth $24,016,214 in the last quarter. Insiders own 1.90% of the company’s stock.

Broadcom 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.