Broadcom (NASDAQ:AVGO) Shares Down 2.9% – Time to Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 2.9% during mid-day trading on Thursday . The stock traded as low as $309.17 and last traded at $309.42. Approximately 20,160,685 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 26,804,656 shares. The stock had previously closed at $318.81.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: OpenAI partnership: Broadcom struck a multiyear deal to co-develop custom AI accelerators, positioning AVGO as a strategic supplier for OpenAI and signaling material addressable revenue from bespoke AI silicon and related infrastructure. OpenAI Just Became Broadcom’s Newest Chip Customer
• Positive Sentiment: Analyst upgrades: Erste Group sharply raised estimates (FY2026 to ~$9.80 EPS and FY2027 to ~$16.55 EPS), implying much stronger earnings power than consensus and supporting a higher valuation if AI wins scale as expected.
• Positive Sentiment: Thesis reinforcement from market commentary: Multiple bullish write-ups highlight Broadcom’s expanding role across custom AI silicon, networking and software for hyperscalers — a structural growth story that investors view as durable despite recent volatility. Broadcom (AVGO) Powers the AI Boom — Bullish despite the Pullback
• Neutral Sentiment: Price-target / multi‑year outlook pieces: Analysts and retail sites are publishing 3‑year AVGO price predictions and scenario analyses reflecting both upside from AI exposure and risk from lofty multiples. Broadcom Stock Price Prediction: Where Will AVGO Be in 3 Years?
• Neutral Sentiment: Buy-the-dip narratives: Several outlets argue the ~24% pullback is a buying opportunity tied to the OpenAI deal and secular AI demand, but these are thesis-driven and hinge on execution. Is the 24% Dip a Golden Buying Opportunity?
• Neutral Sentiment: Macro/sector context: Coverage noting that tech earnings have grown but some ETFs (and segments) lag share-price recovery, which can keep trading volatile for large-cap semiconductors like AVGO. As Tech Earnings Grow, This ETF Still Hasn’t Caught Up (AVGO)
• Negative Sentiment: Insider selling: Reports of insiders selling shares have raised near‑term sentiment concerns and may amplify downside during a broader pullback, even if strategic fundamentals remain intact. Broadcom Insiders Are Selling Stock. Is AVGO Finally at the End of the Road?

Analyst Ratings Changes

Several research firms have commented on AVGO. Barclays reissued an “overweight” rating and set a $500.00 target price (up from $450.00) on shares of Broadcom in a research report on Friday, December 12th. DA Davidson raised Broadcom to a “hold” rating in a research report on Friday, February 13th. Morgan Stanley upped their price target on Broadcom from $462.00 to $470.00 and gave the stock an “overweight” rating in a research note on Friday, March 6th. TD Cowen reissued a “buy” rating on shares of Broadcom in a report on Friday, December 12th. Finally, Bank of America cut their price objective on Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $435.30.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The stock’s 50-day simple moving average is $327.00 and its two-hundred day simple moving average is $344.86. The stock has a market cap of $1.42 trillion, a price-to-earnings ratio of 58.73, a price-to-earnings-growth ratio of 0.66 and a beta of 1.22.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the business posted $1.60 earnings per share. The firm’s revenue was up 29.5% compared to the same quarter last year. Analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be given a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, March 23rd. Broadcom’s payout ratio is currently 50.78%.

Insider Activity at Broadcom

In other news, insider S. Ram Velaga sold 38,841 shares of the 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 $12,491,265.60. Following the completion of the sale, the insider directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Hock E. Tan sold 70,000 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the completion of the sale, the chief executive officer owned 132,836 shares in the company, valued at approximately $46,133,942.80. The trade was a 34.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 403,049 shares of company stock valued at $133,459,315. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

Several hedge funds and other institutional investors have recently bought and sold shares of AVGO. Capital Counsel LLC NY bought a new stake in shares of Broadcom in the 2nd quarter worth about $221,000. Providence First Trust Co lifted its holdings in Broadcom by 1,099.3% during the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock valued at $2,944,000 after purchasing an additional 8,179 shares during the last quarter. Whittier Trust Co. of Nevada Inc. lifted its holdings in Broadcom by 3.4% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer’s stock valued at $109,492,000 after purchasing an additional 10,786 shares during the last quarter. Lmcg Investments LLC boosted its position in Broadcom by 9.4% in the third quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer’s stock valued at $12,854,000 after buying an additional 3,357 shares in the last quarter. Finally, AQR Capital Management LLC boosted its position in Broadcom by 13.3% in the second quarter. AQR Capital Management LLC now owns 3,877,709 shares of the semiconductor manufacturer’s stock valued at $1,063,501,000 after buying an additional 455,851 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

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.