Broadcom’s (AVGO) Buy Rating Reaffirmed at Benchmark

Benchmark restated their buy rating on shares of Broadcom (NASDAQ:AVGO) in a report issued on Thursday morning,Benzinga reports. The brokerage currently has a $485.00 target price on the semiconductor manufacturer’s stock.

A number of other equities analysts have also recently weighed in on AVGO. Truist Financial raised their price objective on Broadcom from $500.00 to $510.00 and gave the company a “buy” rating in a report on Friday, December 19th. UBS Group set a $475.00 price target on shares of Broadcom and gave the company a “buy” rating in a research report on Monday, December 15th. JPMorgan Chase & Co. boosted their price objective on shares of Broadcom from $400.00 to $475.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. Mizuho set a $480.00 price objective on shares of Broadcom and gave the company an “outperform” rating in a research note on Friday, January 9th. Finally, Morgan Stanley lifted their target price 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. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $435.03.

Broadcom Stock Performance

NASDAQ AVGO opened at $332.97 on Thursday. Broadcom has a 52-week low of $138.10 and a 52-week high of $414.61. The company has a fifty day moving average of $334.17 and a 200-day moving average of $342.61. The company has a market capitalization of $1.58 trillion, a P/E ratio of 65.03, a P/E/G ratio of 1.02 and a beta of 1.22. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts’ consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 39.28% and a net margin of 36.57%.The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the business posted $1.60 earnings per share. The company’s revenue for the quarter was up 29.5% on a year-over-year basis. As a group, equities research analysts predict that Broadcom will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd were given a $0.65 dividend. The ex-dividend date was Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is presently 50.78%.

Insider Activity

In other news, insider Mark David Brazeal sold 38,281 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 266,494 shares in the company, valued at approximately $87,316,759.10. This represents a 12.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Kirsten M. Spears sold 30,000 shares of Broadcom stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total value of $10,434,600.00. Following the completion of the sale, the chief financial officer owned 277,237 shares in the company, valued at approximately $96,428,573.34. This represents a 9.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 779,101 shares of company stock valued at $283,804,325. 2.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Broadcom during the 4th quarter valued at about $2,130,000. Mengis Capital Management Inc. lifted its holdings in Broadcom by 23.9% in the fourth quarter. Mengis Capital Management Inc. now owns 10,231 shares of the semiconductor manufacturer’s stock worth $3,541,000 after buying an additional 1,972 shares during the period. Storen Legacy Partners LLC purchased a new stake in Broadcom in the fourth quarter worth about $681,000. Worthington Financial Partners LLC bought a new stake in Broadcom during the 4th quarter valued at approximately $3,147,000. Finally, Bayban purchased a new position in shares of Broadcom during the 4th quarter worth approximately $156,000. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q1 results beat expectations: revenue $19.31B (+29.5% YoY) and adjusted EPS $2.05, with AI semiconductor sales more than doubling to $8.4B — the core driver cited on the call. This beat + margin stability reassured investors. Broadcom’s Blowout Quarter Just Made the Bears Look Foolish
• Positive Sentiment: Very strong forward guide: Broadcom guided Q2 revenue to about $22.0B (well above consensus) and expects AI semiconductor revenue to accelerate to ~$10.7B, signaling continued high single-digit/huge YoY growth in AI exposure. Broadcom forecasts second-quarter revenue above estimates
• Positive Sentiment: Management bullish on AI TAM: CEO Hock Tan said AI chip sales could be “significantly in excess of $100 billion” in 2027 and confirmed memory supply visibility through 2028 — a statement that supports multi-year demand assumptions. Broadcom stock rallies as CEO Tan makes strong case for why AI growth will last
• Positive Sentiment: $10B buyback announced and continued healthy cash flow — lowers share count risk and supports earnings per share. This is an explicit capital-return action that typically supports the share price. PR Newswire: Broadcom Q1 results & buyback
• Positive Sentiment: Analyst enthusiasm: multiple firms raised price targets and reiterated buy/overweight ratings after the print (examples: JPMorgan, Citigroup, Truist, Rosenblatt), signaling growing buy-side conviction. Benzinga (analyst note roundup)
• Neutral Sentiment: Product progress: Broadcom said it has begun shipping a 2nm custom compute SoC on its 3.5D XDSiP platform — positive for technology leadership but a longer-term revenue story. Broadcom Ships 3.5D Face-To-Face Compute SoC
• Neutral Sentiment: Market noise items (short-interest entries here appear to contain errors/zeros) and some analyst target dispersion — watch for churn in headlines but these are less likely to move the stock than the earnings/guidance. TipRanks earnings call recap
• Negative Sentiment: Policy risk: reports that U.S. export rules for AI chips could tighten introduce geopolitical/regulatory downside that could constrain sales outside the U.S. or complicate supply chains. This is an industry-level overhang that can pressure high-PE semiconductor names. New Export Rules Could Be Coming for AI Chipmakers’ Sales
• Negative Sentiment: Enterprise software softness: Broadcom’s infrastructure software (notably VMware-related) showed only ~1% YoY growth this quarter — a drag on overall growth and a reminder that not all segments are benefitting equally from AI momentum. WSJ: Broadcom’s AI Business Is Booming. The Rest Is Complicated.

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.