Broadcom (NASDAQ:AVGO) Shares Down 3.1% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s share price traded down 3.1% during mid-day trading on Wednesday. The stock traded as low as $342.82 and last traded at $346.25. Approximately 22,736,391 shares traded hands during mid-day trading, a decline of 9% from the average session volume of 24,990,814 shares. The stock had previously closed at $357.31.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its fiscal 2027 earnings forecast for Broadcom, signaling continued confidence in the company’s growth outlook. Broadcom FY2027 Earnings Forecast Raised by Erste Group Bank
• Positive Sentiment: AI infrastructure momentum: Broadcom’s custom AI chips, high-speed networking products and infrastructure software remain central to the bullish thesis. The company also showcased AI networking interoperability and introduced VMware HyperArmor, supporting its effort to become a broader data-center infrastructure provider. Will AI Spending Warning Change Broadcom Narrative
• Positive Sentiment: Investors continue to see strategic value: Analysts and shareholders highlight Broadcom’s recurring software revenue, high-margin semiconductor portfolio, strong free cash flow and potential to benefit as hyperscalers adopt alternative AI architectures. Prediction: Broadcom Could Be the AI Winner After Nvidia
• Neutral Sentiment: Market-wide correction risk: Broadcom is included among mega-cap growth stocks that could decline further if investors reduce exposure to expensive technology shares, although such a pullback could create a rebound opportunity. Expecting a Market Correction? This Mega-Cap ETF Deserves a Spot on Your Watchlist
• Negative Sentiment: AI spending concerns: CEO Hock Tan warned that speculative investment and rising financing costs could make it harder for AI companies to generate profits. That raises questions about the sustainability and timing of hyperscaler capital spending. Broadcom CEO Hock Tan Echoes Warren Buffett
• Negative Sentiment: Sector and company-specific risks: The ongoing AI trade sell-off is weighing on semiconductor stocks. Reports also raised concerns about Broadcom’s off-balance-sheet financing exposure and possible weakness in Apple’s iPhone 18 orders, which could affect supplier demand. Broadcom: Should You Worry About Off-Balance-Sheet Financing Risk?

Wall Street Analyst Weigh In

Several research firms recently commented on AVGO. Evercore set a $578.00 price objective on shares of Broadcom and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. Raymond James Financial reaffirmed an “outperform” rating and set a $475.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. TD Cowen reiterated a “buy” rating and set a $475.00 target price (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. BNP Paribas Exane lifted their target price on shares of Broadcom from $675.00 to $715.00 and gave the company an “outperform” rating in a report on Friday, September 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 equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $527.20.

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 company has a market capitalization of $1.61 trillion, a PE ratio of 43.07 and a beta of 1.46. The firm has a 50-day moving average of $366.31 and a 200 day moving average of $383.89.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the previous year, the firm earned $1.69 EPS. Broadcom’s revenue was up 85.5% on a year-over-year basis. As a group, research analysts anticipate 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. Investors of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio is 33.21%.

Hedge Funds Weigh In On Broadcom

Institutional investors have recently bought and sold shares of the stock. Legal & General Group Plc purchased a new position in shares of Broadcom during the 2nd quarter valued at about $11,998,148,000. Bank of New York Mellon Corp bought a new position in shares of Broadcom during the 2nd quarter valued at approximately $10,528,191,000. Jupiter Topco LLC bought a new position in shares of Broadcom during the 2nd quarter valued at approximately $7,396,271,000. State Street Corp increased its holdings in Broadcom by 8.7% in the 2nd 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 in the last quarter. Finally, Deutsche Bank AG purchased a new stake in Broadcom in the 2nd quarter worth approximately $5,661,216,000. 76.43% of the stock is owned by 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 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.