Broadcom (NASDAQ:AVGO) Share Price Breaks Above 50-Day Moving Average – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s share price crossed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $345.59 and traded as high as $369.82. Broadcom shares last traded at $364.36, with a volume of 43,587,323 shares traded.

Trending Headlines about Broadcom

These are some of the AVGO headlines that stood out recently:

• Positive Sentiment: Industry spending remains a supportive backdrop: analyst estimates for hyperscaler capital expenditures have risen sharply, suggesting continued investment in AI infrastructure that could underpin demand for Broadcom’s custom chips and related systems. Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors
• Neutral Sentiment: Broadcom’s AI opportunity comes with customer-concentration risk: its five largest customers reportedly accounted for about 55% of recent-quarter revenue. Anthropic is expected to become its largest custom AI-chip customer in 2027, which could deepen reliance on a few major buyers. Broadcom’s customer concentration risk
• Negative Sentiment: Potentially tighter U.S. export controls and hardware-tracking rules could add compliance costs and delay international AI deployments. Such restrictions may affect Broadcom and other semiconductor suppliers, even if demand for AI infrastructure remains strong. Midterm Fallout, NVIDIA Turmoil, Anthropic’s IPO: Is Broadcom a Steal?

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Tigress Financial began coverage on shares of Broadcom in a research report on Thursday, October 22nd. They issued a “buy” rating and a $600.00 target price on the stock. Royal Bank Of Canada began coverage on Broadcom in a report on Thursday, September 3rd. They set an “outperform” rating on the stock. Evercore set a $578.00 price objective on shares of Broadcom and gave the company an “outperform” rating in a report on Thursday, September 3rd. TD Cowen reaffirmed a “buy” rating and issued a $475.00 price target (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. Finally, Arete Research increased their price objective on Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $530.52.

Broadcom Stock Performance

The company has a market capitalization of $1.74 trillion, a PE ratio of 46.53 and a beta of 1.49. The stock’s fifty day simple moving average is $345.59 and its 200-day simple moving average is $366.48. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. Broadcom’s quarterly revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.69 earnings per share. On average, research analysts predict that Broadcom Inc. will post 10.20 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors 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 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio is presently 33.21%.

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp raised 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 valued at $75,367,711,000 after acquiring an additional 16,651,378 shares during the last quarter. Bank of America Corp DE grew its stake in Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after buying an additional 2,685,916 shares during the period. Wellington Management Group LLP boosted its position in Broadcom by 3.8% during the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Broadcom by 2.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after acquiring an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Broadcom during the 2nd quarter valued at $11,998,148,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.