Broadcom (NASDAQ:AVGO) Trading Down 1.1% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 1.1% during mid-day trading on Tuesday . The stock traded as low as $317.25 and last traded at $321.31. Approximately 37,838,585 shares were traded during mid-day trading, an increase of 40% from the average daily volume of 26,959,414 shares. The stock had previously closed at $324.92.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Meta publicly confirmed Broadcom as its MTIA custom‑chip partner and outlined multiple inference-focused MTIA chips, validating a large hyperscaler customer and recurring accelerator demand for Broadcom. Why Meta’s AI Chip Announcement Has Broadcom Investors Paying Attention
• Positive Sentiment: Broadcom began production‑volume shipping of the Tomahawk‑6 family (the industry’s first 102.4 Tbps switch), a commercialization milestone that supports near‑term revenue upside from AI datacenter networking. Broadcom (AVGO) Commences Production Volume Shipping of World’s First 102.4 Tbps Switch
• Positive Sentiment: New optical/Ethernet products (400G optical DSP, 3.5D XPU) showcased at OFC strengthen Broadcom’s AI networking roadmap and reinforce analyst upside for fiscal 2026 growth. AVGO Boosts AI Growth With New Optical, Ethernet Tech
• Neutral Sentiment: Broadcom announced the world’s first end‑to‑end PQC‑safe, in‑flight network encryption solution (Emulex SecureHBA), expanding product breadth in security/compliance but with limited immediate revenue impact. Broadcom Delivers the World’s First End-to-End PQC-safe, In-flight Network Encryption Solution
• Neutral Sentiment: Analyst coverage remains active and mixed: multiple price‑target increases and bullish notes coexist with some critical takes, creating two‑way order flow rather than a one‑sided move.
• Negative Sentiment: A European cloud‑industry lobbying group urged EU antitrust regulators to impose an interim measure to stop Broadcom from ending VMware’s Cloud Service Provider program in Europe — a potential regulatory/contract risk that could create near‑term uncertainty. Cloud industry group calls for EU interim measure against Broadcom over VMware
• Negative Sentiment: Clustered insider selling: multiple senior executives (including the CFO and other officers) disclosed large share sales on March 16–17, which is weighing on sentiment despite no company guidance change. Kirsten M. Spears Form 4 (SEC)
• Negative Sentiment: Meta’s MTIA disclosure did not include a GenAI training chip (Olympus), suggesting training‑class revenue timelines may be pushed out and limiting near‑term upside from higher‑value training accelerators. Why Meta’s AI Chip Announcement Has Broadcom Investors Paying Attention

Analysts Set New Price Targets

Several research firms have commented on AVGO. Oppenheimer increased their target price on shares of Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. Barclays reissued an “overweight” rating and issued a $500.00 price objective (up from $450.00) on shares of Broadcom in a research note on Friday, December 12th. Wall Street Zen raised Broadcom from a “hold” rating to a “buy” rating in a research report on Saturday, December 13th. Royal Bank Of Canada lowered their price target on Broadcom from $370.00 to $340.00 and set a “sector perform” rating on the stock in a report on Monday, March 2nd. Finally, Zacks Research lowered shares of Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Price Performance

The firm has a market cap of $1.52 trillion, a P/E ratio of 62.82, a price-to-earnings-growth ratio of 0.69 and a beta of 1.22. The stock’s 50-day moving average is $331.36 and its 200-day moving average is $345.06. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO) last issued 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 net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the firm earned $1.60 EPS. The business’s revenue was up 29.5% on a year-over-year basis. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be given a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is 50.78%.

Insider Activity

In other Broadcom news, CEO Hock E. Tan sold 100,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $345.65, for a total value of $34,565,000.00. Following the completion of the transaction, the chief executive officer owned 495,638 shares of the company’s stock, valued at $171,317,274.70. This represents a 16.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares in the company, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 528,970 shares of company stock valued at $177,150,321. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors have recently bought and sold shares of the business. Painted Porch Advisors LLC grew its stake in shares of Broadcom by 28.2% in the 4th quarter. Painted Porch Advisors LLC now owns 1,665 shares of the semiconductor manufacturer’s stock valued at $576,000 after purchasing an additional 366 shares during the period. Cornerstone Planning LLC bought a new position in shares of Broadcom during the 4th quarter worth approximately $7,049,000. AMG Asset Management Group Inc. acquired a new stake in Broadcom in the 4th quarter valued at $833,000. Forty three Eighteen Advisors LLC acquired a new stake in Broadcom in the 4th quarter valued at $218,000. Finally, Bank of New Hampshire grew its position in Broadcom by 62.7% in the fourth quarter. Bank of New Hampshire now owns 13,022 shares of the semiconductor manufacturer’s stock valued at $4,507,000 after acquiring an additional 5,016 shares during the period. Institutional investors and hedge funds 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.