Broadcom (NASDAQ:AVGO) Trading 2.5% Higher – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) was up 2.5% during mid-day trading on Friday . The stock traded as high as $354.51 and last traded at $351.71. Approximately 31,058,791 shares were traded during trading, an increase of 25% from the average daily volume of 24,844,691 shares. The stock had previously closed at $343.02.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst bullishness around AI upside — Jefferies named Broadcom one of three chip stocks with expected earnings upside as AI demand accelerates, reinforcing growth expectations for AVGO. 3 Chip Stocks to Buy for 2026, According to an Analyst
• Positive Sentiment: Higher Wall Street targets and estimates — KeyCorp reiterated an Overweight stance with a $500 price target and raised multi-quarter EPS projections, supporting upside expectations for growth and margins. KeyCorp estimates and rating
• Positive Sentiment: Institutional buying signal — Cathie Wood’s ARK added to Broadcom, a visible endorsement for growth-oriented investors focused on AI exposure. Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
• Positive Sentiment: Sell-side defense on competitive fears — Bernstein and Seeking Alpha pieces push back on AI-competition and margin worries, reducing tail-risk narratives that could have pressured shares. Bernstein Dismisses AI Competition Fears Surrounding Broadcom (AVGO)
• Positive Sentiment: Industry tailwind — TSMC’s strong results lifted chip stocks broadly, providing positive momentum for Broadcom as investors rotate into AI/infrastructure plays. Chip stocks pop after TSMC’s earnings beat
• Neutral Sentiment: RBC initiates coverage with Sector Perform — a neutral/steadying rating that removes uncertainty but doesn’t add strong buy-side pressure. RBC Capital initiates coverage of Broadcom
• Negative Sentiment: Debt issuance may worry some investors — Broadcom filed for a $4.5B senior notes offering to fund operations and repay loans; higher leverage or signaling needs for cash can temper sentiment. Broadcom Issues $4.5B in Notes as AI Concerns Linger
• Negative Sentiment: Insider selling headlines — recent reports of ~$490M in insider sales and a CEO sale (~$24M) are being viewed negatively by some investors as a signal of management liquidity or timing. Broadcom Insiders Sold US$490m Of Shares
• Negative Sentiment: Geopolitical risk — reports that China banned Broadcom’s cybersecurity products introduce potential revenue/market-access risk in a key region. China Just Banned Broadcom’s Cybersecurity Solutions
• Negative Sentiment: Valuation concerns — Zacks highlights a high price-to-sales multiple and flags the stock as overvalued, which can pressure momentum investors. At 15.93 P/S, Broadcom Is Overvalued

Analyst Ratings Changes

Several research firms have recently weighed in on AVGO. Truist Financial boosted their price objective on shares of Broadcom from $500.00 to $510.00 and gave the stock a “buy” rating in a research note on Friday, December 19th. Benchmark boosted their price target on Broadcom from $385.00 to $485.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Wall Street Zen upgraded Broadcom from a “hold” rating to a “buy” rating in a research note on Saturday, December 13th. Wells Fargo & Company upgraded Broadcom from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $410.00 to $430.00 in a research note on Thursday. Finally, Royal Bank Of Canada began coverage on Broadcom in a report on Wednesday. They set a “sector perform” rating and a $370.00 target price on the stock. Three investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $438.61.

Broadcom Stock Up 2.5%

The firm has a 50-day moving average price of $358.98 and a 200 day moving average price of $333.70. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The company has a market cap of $1.67 trillion, a price-to-earnings ratio of 73.89, a P/E/G ratio of 1.17 and a beta of 1.21.

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

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. This is a boost from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, December 22nd. Broadcom’s dividend payout ratio is currently 54.62%.

Insider Buying and Selling at Broadcom

In other news, insider Mark David Brazeal sold 38,281 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $327.65, for a total transaction of $12,542,769.65. Following the transaction, the insider directly owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. This trade represents a 12.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Henry Samueli sold 320,316 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $400.53, for a total value of $128,296,167.48. Following the completion of the sale, the director owned 37,326,540 shares of the company’s stock, valued at approximately $14,950,399,066.20. This trade represents a 0.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 779,901 shares of company stock valued at $284,069,237 in the last three months. 2.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

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

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.