Erste Group Bank Increases Earnings Estimates for Broadcom

Broadcom Inc. (NASDAQ:AVGO) – Investment analysts at Erste Group Bank raised their FY2026 earnings estimates for Broadcom in a note issued to investors on Wednesday, February 18th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor manufacturer will post earnings of $8.69 per share for the year, up from their prior forecast of $8.66. The consensus estimate for Broadcom’s current full-year earnings is $5.38 per share. Erste Group Bank also issued estimates for Broadcom’s FY2027 earnings at $12.60 EPS.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.87 by $0.08. The company had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company’s revenue was up 28.2% on a year-over-year basis. During the same quarter last year, the business posted $1.42 earnings per share.

Several other analysts have also recently commented on AVGO. Barclays restated an “overweight” rating and set a $500.00 target price (up previously from $450.00) on shares of Broadcom in a report on Friday, December 12th. Weiss Ratings reiterated a “buy (b)” rating on shares of Broadcom in a research report on Monday, December 29th. Mizuho set a $480.00 price objective on shares of Broadcom and gave the stock an “outperform” rating in a report on Friday, January 9th. UBS Group set a $475.00 price objective on shares of Broadcom and gave the company a “buy” rating in a research report on Monday, December 15th. Finally, Truist Financial boosted their target price on shares of Broadcom from $500.00 to $510.00 and gave the stock a “buy” rating in a research note on Friday, December 19th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $433.13.

Broadcom Trading Down 0.4%

AVGO stock opened at $332.65 on Monday. The business has a fifty day moving average price of $337.30 and a 200 day moving average price of $342.08. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $414.61. The stock has a market capitalization of $1.58 trillion, a price-to-earnings ratio of 69.88, a P/E/G ratio of 1.06 and a beta of 1.21.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were paid a $0.65 dividend. This is an increase from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date of this dividend was Monday, December 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is currently 54.62%.

Insider Buying and Selling

In other Broadcom news, CEO Hock E. Tan sold 130,000 shares of the stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $326.02, for a total value of $42,382,600.00. Following the transaction, the chief executive officer owned 595,638 shares of the company’s stock, valued at approximately $194,189,900.76. This represents a 17.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Henry Samueli sold 320,316 shares of the firm’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $400.53, for a total value of $128,296,167.48. Following the transaction, the director owned 37,326,540 shares in the company, valued at approximately $14,950,399,066.20. This trade represents a 0.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 779,101 shares of company stock valued at $283,804,325 over the last 90 days. Company insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after buying an additional 6,222,802 shares during the period. State Street Corp lifted its holdings in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Broadcom by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after acquiring an additional 1,548,699 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Broadcom by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after acquiring an additional 2,491,644 shares during the period. Finally, Norges Bank bought a new stake in shares of Broadcom in the fourth quarter worth about $24,252,196,000. 76.43% of the stock is owned by institutional investors.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom launched BroadPeak™, a next‑generation radio DFE SoC (5nm) for 5G Advanced and 6G massive MIMO that the company says cuts power by up to 40% and is shipping samples — a clear product catalyst for telco infrastructure revenue if adoption scales. Broadcom Introduces Industry’s First 6G Digital Front-End SoC for Massive MIMO
• Positive Sentiment: Analyst and commentary pieces are broadly constructive on Broadcom’s AI exposure and diversified revenue streams — several bullish analyst ratings and price targets (median ~$450) support upside expectations versus today’s price. (Analyst coverage cited across recent reports.)
• Positive Sentiment: Market commentary argues that AI capex volatility creates buying opportunities for hardware leaders like Broadcom as hyperscaler spending ramps, which can sustain multi‑year revenue growth. Broadcom: AI CapEx Panic Is Your Opportunity
• Neutral Sentiment: Broadcom reports a large AI backlog (reported ~US$73B) that underpins long‑term revenue visibility but has people debating whether the current multiple already prices that growth. That makes the stock sensitive to guidance and execution updates. Broadcom’s US$73b AI Backlog Puts Valuation And Risks In Focus
• Neutral Sentiment: Recent hedge‑fund activity is mixed — several firms (Woodline, Farallon, Owl Creek) added positions while others (D1 Capital, Altimeter, 3G Capital) trimmed — leaving institutional flows ambiguous for near‑term price direction. 3G Capital Partners Cuts 65,000 Broadcom Shares Stake
• Negative Sentiment: Elevated insider selling and large institutional reductions (e.g., a reported large Q4 trim by a major asset manager) increase near‑term downside risk if execution or guidance disappoints — investors watch insider/inst flows closely. (Quiver/filings summaries.)
• Negative Sentiment: Valuation concerns: multiple commentary pieces note Broadcom isn’t cheap today, so upside depends on continued strong execution, hyperscaler capex, and product adoption — any softness in guidance could pressure the shares. Broadcom Stock Isn’t Cheap. Why Bulls Still See Room to Run

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.