Broadcom (NASDAQ:AVGO) Stock Price Up 5% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price shot up 5% on Wednesday . The stock traded as high as $354.14 and last traded at $350.63. 31,379,472 shares traded hands during trading, an increase of 19% from the average session volume of 26,449,654 shares. The stock had previously closed at $333.97.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Signed a long‑term agreement to develop and supply future generations of Google’s custom AI chips and networking components (supply assurance through ~2031), which materially lengthens revenue visibility for Broadcom’s AI silicon and networking franchises. Broadcom signs long-term deal to develop Google’s custom AI chips
• Positive Sentiment: Expanded Anthropic partnership: Broadcom (with Google) will provide Anthropic access to ~3.5 GW of TPU‑based compute beginning in 2027, reinforcing multi‑GW demand expectations from a fast‑growing AI customer. This underpins consensus upside for AVGO tied to AI infrastructure adoption. Anthropic Signs Multi-Billion Dollar TPU Deal with Broadcom and Google
• Positive Sentiment: Strong analyst bullishness and positioning: coverage remains largely positive (InsiderMonkey highlights AVGO as an oversold data‑center pick) and some brokers reaffirm high targets, supporting upside expectations versus recent pullbacks. Broadcom (AVGO): 7 Most Oversold Data Center Stocks to Invest In
• Neutral Sentiment: Launched the Arcot Smart Ruleset, an ML‑driven 3‑D Secure ruleset engine — a product/solution win for Broadcom’s payments/security software stack; important for software strategic positioning but not a clear near‑term revenue catalyst on the scale of the AI deals. Broadcom Launches the Arcot Smart Ruleset
• Negative Sentiment: Seaport Global downgraded AVGO to Neutral, signaling concerns that the AI chip rally may be overextended for some investors and cautioning about valuation/sentiment risks despite the partnership news. This can cap upside in the near term if other brokers follow. Broadcom Cut to Neutral at Seaport
• Negative Sentiment: Analyst downgrades/concerns around software‑segment growth (Erste Group and others) raise questions about sustainability of Broadcom’s higher multiple if software revenue slows, contributing to short‑term volatility and mixed sentiment. Broadcom (AVGO) Downgraded on Concerns Over Software Segment Growth

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AVGO. Wells Fargo & Company upgraded Broadcom from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Truist Financial increased their target price on Broadcom from $510.00 to $545.00 and gave the company a “buy” rating in a research note on Thursday, March 5th. Weiss Ratings restated a “buy (b)” rating on shares of Broadcom in a research note on Monday, December 29th. DA Davidson upgraded Broadcom to a “hold” rating in a research note on Friday, February 13th. Finally, KeyCorp restated an “overweight” rating and set a $500.00 target price (up from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $435.30.

Broadcom Stock Performance

The firm has a fifty day simple moving average of $324.54 and a 200 day simple moving average of $342.73. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The stock has a market cap of $1.66 trillion, a price-to-earnings ratio of 68.48, a PEG ratio of 0.67 and a beta of 1.24.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company’s revenue for the quarter was up 29.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.60 EPS. As a group, sell-side analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were issued a $0.65 dividend. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio is 50.78%.

Insider Transactions at Broadcom

In other Broadcom news, insider S. Ram Velaga sold 38,841 shares of the company’s 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 transaction, the insider owned 96,147 shares of the company’s stock, valued at $30,920,875.20. This represents a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 273,049 shares of company stock worth $88,300,115. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently modified their holdings of the stock. Providence First Trust Co raised its holdings in shares of Broadcom by 1,099.3% in the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock worth $2,944,000 after buying an additional 8,179 shares in the last quarter. Whittier Trust Co. of Nevada Inc. grew its position 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 worth $109,492,000 after acquiring an additional 10,786 shares during the last quarter. Lmcg Investments LLC grew its position in Broadcom by 9.4% during the 3rd quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer’s stock worth $12,854,000 after acquiring an additional 3,357 shares during the last quarter. AQR Capital Management LLC grew its position in Broadcom by 13.3% during the 2nd quarter. AQR Capital Management LLC now owns 3,877,709 shares of the semiconductor manufacturer’s stock worth $1,063,501,000 after acquiring an additional 455,851 shares during the last quarter. Finally, Wright Investors Service Inc. grew its position in Broadcom by 5.4% during the 3rd quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer’s stock worth $13,909,000 after acquiring an additional 2,178 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

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.