Broadcom (NASDAQ:AVGO) Trading Down 2.8% – Time to Sell?
by Michael Walen · The Markets DailyBroadcom Inc. (NASDAQ:AVGO – Get Free Report) shares traded down 2.8% on Friday . The company traded as low as $298.87 and last traded at $300.68. 23,427,134 shares changed hands during trading, a decline of 12% from the average session volume of 26,749,289 shares. The stock had previously closed at $309.42.
Key Stories Impacting 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 Upgrades and Downgrades
Several analysts recently commented on AVGO shares. Zacks Research lowered Broadcom from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 4th. Bank of America dropped their target price on Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Wells Fargo & Company upgraded Broadcom from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a research note on Friday, December 12th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $435.30.
Read Our Latest Research Report on Broadcom
Broadcom Stock Performance
The business has a 50-day simple moving average of $328.02 and a 200 day simple moving average of $345.17. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The firm has a market cap of $1.42 trillion, a PE ratio of 58.73, a PEG ratio of 0.68 and a beta of 1.22.
Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts’ consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion for 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 business’s quarterly revenue was up 29.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.60 EPS. Equities research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.
Broadcom Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be issued a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.9%. Broadcom’s payout ratio is currently 50.78%.
Insiders Place Their Bets
In other news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the sale, the chief financial officer directly owned 327,760 shares of the company’s stock, valued at $105,407,616. This represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Hock E. Tan sold 70,000 shares of the firm’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the sale, the chief executive officer owned 132,836 shares in the company, valued at $46,133,942.80. The trade was a 34.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 403,049 shares of company stock valued at $133,459,315. Insiders own 1.90% of the company’s stock.
Institutional Investors Weigh In On Broadcom
A number of institutional investors have recently bought and sold shares of the business. ROSS JOHNSON & Associates LLC grew its position in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC lifted its holdings in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Teachers Insurance & Annuity Association of America bought a new position in Broadcom in the 2nd quarter worth approximately $28,000. JCIC Asset Management Inc. bought a new position in Broadcom in the 3rd quarter worth approximately $31,000. Finally, Miller Global Investments LLC purchased a new stake in Broadcom during the 4th quarter valued at approximately $31,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.
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.