Broadcom (NASDAQ:AVGO) Trading Down 12.6% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) shares dropped 12.6% on Thursday . The stock traded as low as $403.01 and last traded at $418.91. Approximately 80,138,932 shares were traded during mid-day trading, an increase of 217% from the average daily volume of 25,318,520 shares. The stock had previously closed at $479.23.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported strong fiscal Q2 results, with earnings of $2.44 per share topping estimates and revenue rising 48% year over year to $22.19 billion, driven by surging AI chip demand. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Positive Sentiment: The company’s AI semiconductor revenue more than doubled to $10.8 billion, showing continued momentum in custom AI accelerators and networking. Broadcom Revenue Climbs on AI Chip Demand
• Positive Sentiment: Several analysts raised price targets after the report, signaling that Wall Street still sees upside despite the selloff. Analyst target raises referenced in Benzinga
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, which supports the stock’s income appeal but is not the main driver of today’s move. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Negative Sentiment: Shares are falling because Broadcom’s third-quarter AI revenue guidance of about $16 billion came in below some investor expectations, raising concerns that AI growth may not be accelerating as quickly as the market hoped. Broadcom tumbles as revenue miss clouds AI boom bets
• Negative Sentiment: The post-earnings selloff is also pressuring other chip stocks, suggesting investors are reassessing how much AI optimism is already priced into the semiconductor rally. Stock Market Today: Nasdaq 100 Slips As Broadcom Plunges, Bitcoin Hits 4-Month Lows

Analyst Upgrades and Downgrades

AVGO has been the topic of several research reports. TD Cowen reaffirmed a “buy” rating and issued a $500.00 target price on shares of Broadcom in a research report on Thursday. Oppenheimer reaffirmed an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday. Citigroup reaffirmed a “buy” rating on shares of Broadcom in a research report on Thursday. KeyCorp reaffirmed an “overweight” rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a research report on Thursday. Finally, Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $490.13.

Broadcom Stock Down 12.6%

The firm’s 50 day moving average price is $392.87 and its two-hundred day moving average price is $361.19. The firm has a market capitalization of $1.98 trillion, a PE ratio of 81.82, a P/E/G ratio of 0.99 and a beta of 1.41. 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 released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm’s quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.58 EPS. As a group, research analysts forecast that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is 50.78%.

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the transaction, the director directly owned 32,352 shares of the company’s stock, valued at $11,592,045.12. This represents a 3.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the transaction, the insider owned 278,141 shares of the company’s stock, valued at approximately $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock worth $106,425,249 over the last ninety days. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after buying an additional 3,919,715 shares in the last quarter. State Street Corp grew its position in shares of Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after acquiring an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Broadcom by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after acquiring an additional 2,491,644 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Broadcom during the 4th quarter valued at approximately $24,252,196,000. 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.