Broadcom (NASDAQ:AVGO) Shares Down 1.1% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 1.1% during trading on Wednesday. The stock traded as low as $350.69 and last traded at $351.19. 18,309,319 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 25,143,646 shares. The stock had previously closed at $355.10.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI opportunity remains substantial as Anthropic reportedly becomes its largest XPU customer. Continued infrastructure spending by major AI developers could support strong future demand for Broadcom’s custom chips and networking products. Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test
• Positive Sentiment: Historical trading data show Broadcom shares have risen in each of the past 13 fourth quarters, with previous gains ranging from less than 3% to approximately 37%. The seasonal pattern may encourage bullish investors, although it does not guarantee a repeat performance. History Says Broadcom Stock’s Best Season Starts Now
• Positive Sentiment: Broadcom has increased its dividend for 15 consecutive years, most recently by 10%, and its free cash flow through three quarters of fiscal 2026 had already exceeded the full-year 2025 total. Investors may view the potential for another December increase as evidence of financial strength. Broadcom’s Dividend Has Grown About 90-Fold Since 2010
• Positive Sentiment: One report places the average analyst price target at $527.20, indicating substantial potential upside from recent trading levels and continued Wall Street confidence in AVGO’s long-term prospects. Broadcom Stock Has Average Target Price of $527.20
• Neutral Sentiment: Comparisons with Qualcomm and inTEST frame Broadcom as a large, diversified semiconductor and infrastructure-software company, but these articles offer limited new company-specific information likely to alter the stock’s immediate direction. Broadcom vs. Qualcomm
• Negative Sentiment: Anthropic’s leaked IPO prospectus reportedly lists $161.2 billion of lease obligations to Broadcom and $518 billion of total infrastructure commitments. Questions about Anthropic’s ability to fund those obligations create customer-concentration and credit risks, particularly because the AI company is expected to become Broadcom’s largest XPU customer. Broadcom’s AI Growth Story Faces an Anthropic Test
• Negative Sentiment: Broadcom’s elevated valuation—about 45 times earnings in the provided market data—leaves the shares sensitive to any doubts about AI spending, customer solvency or the pace of future growth.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on AVGO. Evercore set a $578.00 target price on Broadcom and gave the company an “outperform” rating in a report on Thursday, September 3rd. Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. The Goldman Sachs Group upped their price target on shares of Broadcom from $525.00 to $540.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Royal Bank Of Canada began coverage on Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating for the company. Finally, Benchmark boosted their target price on Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Price Performance

The stock has a 50 day moving average of $375.17 and a two-hundred day moving average of $380.59. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The firm has a market capitalization of $1.68 trillion, a P/E ratio of 44.85 and a beta of 1.44.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the company posted $1.69 earnings per share. The company’s revenue for the quarter was up 85.5% compared to the same quarter last year. Sell-side analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Insiders Place Their Bets

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 51,890 shares of company stock valued at $20,241,368. Company insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. State Street Corp grew its stake in shares of Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after acquiring an additional 16,651,378 shares during the last quarter. Norges Bank bought a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. Bank of America Corp DE grew its position in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after purchasing an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Broadcom by 3.8% during the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock valued at $15,178,195,000 after buying an additional 1,140,598 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.