Broadcom (NASDAQ:AVGO) Stock Jumps 2.3% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shares traded up 2.3% during mid-day trading on Monday. The stock traded as high as $332.12 and last traded at $329.17. 18,458,856 shares traded hands during trading, a decline of 26% from the average daily volume of 24,853,141 shares. The stock had previously closed at $321.68.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Unusually heavy call-option activity suggests traders are positioning for a rebound in Broadcom shares, reinforcing the short-term bullish sentiment. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Positive Sentiment: Anthropic’s IPO filing highlighted approximately $224.5 billion in non-cancelable compute commitments with Amazon and Alphabet. The spending should support demand for the custom application-specific chips and networking equipment Broadcom supplies to hyperscalers. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Analysts and investors increasingly view Broadcom as a leading alternative supplier of custom AI accelerators and Ethernet networking components, potentially allowing it to capture workloads that might otherwise rely on Nvidia’s proprietary ecosystem. Not AMD. Not Marvell. Here’s Which Company Nvidia Needs to Be Worried About.
• Positive Sentiment: Several bullish outlooks argue that accelerating AI revenue, custom-chip growth and networking demand could support substantial long-term upside. The stock’s decline from its peak has also prompted questions about whether its valuation is becoming more attractive. Broadcom Is At a 6-Month Low – Is AVGO Stock Too Cheap?
• Neutral Sentiment: Broadcom is receiving unusually high online investor attention, which may increase trading activity but does not by itself indicate a change in fundamentals. Investors Heavily Search Broadcom Inc. Here is What You Need to Know
• Neutral Sentiment: Long-range forecasts project major market-cap growth, but these targets depend on Broadcom sustaining exceptionally strong AI growth through 2030 and therefore carry considerable execution risk. Prediction: Broadcom Will Be a $4.5 Trillion Company by 2030
• Negative Sentiment: Alphabet is diversifying its TPU supply chain by working with MediaTek, raising concerns that Broadcom could lose some custom-chip business. Demand from Anthropic and OpenAI may partly offset that risk. Broadcom’s AI Chip Business Is Booming, But Alphabet’s Strategy Highlights 2 Key Risks
• Negative Sentiment: Concerns that debt-market funding for AI data centers is tightening could slow hyperscaler infrastructure expansion, while Erste Group Bank’s reduction to Broadcom earnings estimates adds pressure to near-term expectations. Is Money for AI Data Centers Drying Up?

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on AVGO shares. Truist Financial reduced their price target on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. Raymond James Financial reiterated an “outperform” rating and set a $475.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. Wall Street Zen cut shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Sanford C. Bernstein restated a “buy” rating on shares of Broadcom in a report on Monday, September 21st. Finally, UBS Group cut shares of Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $529.17.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The firm has a market cap of $1.57 trillion, a P/E ratio of 42.04 and a beta of 1.46. The stock’s 50-day simple moving average is $356.05 and its two-hundred day simple moving average is $384.74.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter last year, the business earned $1.69 EPS. The business’s revenue was up 85.5% on a year-over-year basis. Equities research analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is presently 33.21%.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently modified their holdings of AVGO. Networth Advisors LLC lifted its position in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the last quarter. Core Capital Management & Research inc. bought a new stake in Broadcom during the 2nd quarter valued at about $31,000. Harborfront Financial Group LLC purchased a new stake in Broadcom in the 2nd quarter valued at about $38,000. Align Financial LLC boosted its position in Broadcom by 67.2% in the 3rd quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock valued at $38,000 after buying an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC bought a new position in Broadcom in the 3rd quarter worth about $41,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Company Profile

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

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.