BMO Capital Markets Upgrades Broadcom (NASDAQ:AVGO) to Strong-Buy

Broadcom (NASDAQ:AVGO) was upgraded by equities researchers at BMO Capital Markets to a “strong-buy” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other equities research analysts also recently weighed in on the company. Bank of America raised their target price on Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. UBS Group set a $485.00 price target on Broadcom and gave the stock a “buy” rating in a report on Thursday, June 4th. Royal Bank Of Canada upped their price objective on Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research report on Thursday, June 4th. KeyCorp reaffirmed an “overweight” rating and issued a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Wall Street Zen cut Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $491.97.

Broadcom Trading Up 1.2%

Shares of NASDAQ:AVGO opened at $368.45 on Thursday. The company has a market capitalization of $1.75 trillion, a P/E ratio of 61.41, a P/E/G ratio of 0.69 and a beta of 1.45. Broadcom has a 1 year low of $287.17 and a 1 year high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business’s 50 day simple moving average is $388.57 and its 200 day simple moving average is $374.80.

Broadcom (NASDAQ:AVGO) last posted 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 business had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter last year, the business posted $1.58 EPS. On average, research analysts anticipate that Broadcom will post 10.24 EPS for the current fiscal year.

Insider Transactions at Broadcom

In related news, insider Mark David Brazeal sold 25,000 shares of the firm’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 over the last quarter. 1.90% of the stock is currently owned by insiders.

Institutional Trading of Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in AVGO. Norges Bank acquired a new stake in Broadcom during the 4th quarter worth approximately $24,252,196,000. Legal & General Group Plc acquired a new position in Broadcom in the 2nd quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new position in Broadcom in the 2nd quarter valued at approximately $10,528,191,000. Jupiter Topco LLC bought a new position in shares of Broadcom during the second quarter valued at $7,396,271,000. Finally, Deutsche Bank AG acquired a new position in shares of Broadcom during the second quarter worth $5,661,216,000. 76.43% of the stock is currently owned by institutional investors.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI financing deal could expand Broadcom’s growth opportunity: Broadcom is reportedly discussing $70 billion to $80 billion of debt financing—potentially approaching $100 billion—to provide AI chips to Anthropic and other companies. The arrangement could support substantial future chip demand, although the financing remains under discussion. Broadcom debt deal expected to reach upwards of $70 billion
• Positive Sentiment: Analysts remain constructive: BMO initiated coverage with an “outperform” rating and a $455 price target, implying meaningful upside from recent levels. Other recent commentary also argues that Broadcom’s AI cycle and long-term custom-chip position could support further gains. Broadcom Stock Picks Up Another Lofty Bull Note
• Positive Sentiment: Strong AI demand underpins the bullish case: Reports cite approximately $30 billion in quarterly AI bookings and management’s goal of exceeding $100 billion in AI sales by 2027. Broadcom’s latest reported quarter also showed 47.9% year-over-year revenue growth, reinforcing the company’s momentum. Broadcom’s AI Boom: Is a 2x Stock Gain Still Within Reach?
• Neutral Sentiment: Debt-funded expansion introduces execution and balance-sheet risk: Borrowing tens of billions of dollars could accelerate AI infrastructure growth, but it would also increase leverage and financing costs if customer demand or deal economics disappoint. Broadcom reportedly eyes nearly $100 billion debt package
• Negative Sentiment: Marvell’s Google partnership threatens Broadcom’s custom AI-chip dominance: Marvell’s agreement covers products connected to Google’s TPU ecosystem, including inference accelerators and networking components. Google also received warrants that could align it more closely with Marvell, raising concerns about future share loss for Broadcom despite Broadcom’s existing multiyear Google partnership. Marvell Constructs an AI Moat With Alphabet Warrants

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.