Broadcom (NASDAQ:AVGO) Rating Increased to Strong-Buy at BMO Capital Markets

BMO Capital Markets upgraded shares of Broadcom (NASDAQ:AVGO) to a strong-buy rating in a research report released on Thursday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Rosenblatt Securities reissued a “buy” rating and issued a $500.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Benchmark upped their price target on Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Oppenheimer reissued an “outperform” rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. DA Davidson lifted their target price on Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, June 4th. Finally, Evercore reiterated an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $491.97.

Broadcom Trading Up 1.2%

NASDAQ:AVGO opened at $368.45 on Thursday. The company has a market cap of $1.75 trillion, a PE ratio of 61.41, a price-to-earnings-growth ratio of 0.69 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a 50 day simple moving average of $388.57 and a two-hundred day simple moving average of $374.80. Broadcom has a 12 month low of $287.17 and a 12 month high of $495.00.

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 analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the business posted $1.58 EPS. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. Research analysts forecast that Broadcom will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s payout ratio is currently 43.33%.

Insider Buying and Selling at Broadcom

In related news, Director Justine Page sold 1,602 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last ninety days. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Fullerton Advisors LLC increased its position in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its holdings in Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after buying an additional 25 shares during the period. RFG Holdings Inc. lifted its position in Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after buying an additional 26 shares during the last quarter. Yukon Wealth Management Inc. lifted its position in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after buying an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC boosted its stake in Broadcom by 2.6% during the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after buying an additional 27 shares during the period. Institutional investors own 76.43% of the company’s stock.

Key Stories Impacting Broadcom

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

About Broadcom

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.