Broadcom (NASDAQ:AVGO) Shares Up 4.9% After Earnings Beat

Broadcom Inc. (NASDAQ:AVGO)’s share price was up 4.9% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $336.12 and last traded at $332.97. Approximately 56,657,243 shares traded hands during trading, an increase of 119% from the average daily volume of 25,833,725 shares. The stock had previously closed at $317.53.

The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the prior year, the company earned $1.60 earnings per share. The business’s revenue for the quarter was up 29.5% compared to the same quarter last year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Monday, March 23rd. Broadcom’s dividend payout ratio is 50.78%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q1 beat and blowout AI momentum — Broadcom reported $19.31B revenue and $2.05 adj. EPS, with AI semiconductor sales up ~106% to about $8.4B; management guided fiscal Q2 revenue well above consensus (~$22B) and provided aggressive AI revenue visibility. Broadcom Q1 earnings beat
• Positive Sentiment: Big-picture AI guidance — CEO Hock Tan said AI chip sales could be “significantly” above $100B in 2027, reinforcing the thesis that Broadcom is a major non‑GPU AI supplier and supporting upside expectations. Reuters: $100B AI sales guidance
• Positive Sentiment: Shareholder returns — Management unveiled a $10B buyback, which supports EPS and signals confidence in the business at current levels. Seeking Alpha: $10B buyback
• Positive Sentiment: Analyst upgrades and higher price targets — Multiple firms raised price targets and reiterated buy/overweight calls (JPMorgan, Morgan Stanley, Truist, Citi, Rosenblatt), lifting sentiment and signaling institutional confidence. Benzinga: analyst revisions
• Neutral Sentiment: Positive media and analyst write-ups — Numerous bullish pieces (Seeking Alpha, MarketBeat, CNBC, Barron’s) highlight the AI thesis and long-term upside; these help narrative but are opinion-driven. MarketBeat: analysis
• Neutral Sentiment: Short‑interest data in feeds appears anomalous (reported as 0 shares / NaN change) and is not informative for current positioning.
• Negative Sentiment: Software segment soft spot — Infrastructure software (VMware exposure) showed only ~1% revenue growth; the software business is cited as a drag on overall results and valuation. WSJ: software drag
• Negative Sentiment: Regulatory/export risk — Coverage noted potential for tougher U.S. export controls on AI chips, a macro/regulatory headwind that could limit international sales upside. Investopedia: export rules
• Negative Sentiment: Analyst downgrade/valuation concerns — Zacks trimmed its rating to “hold” and some commentary flags that Broadcom’s premium multiple could cap near-term gains despite the earnings beat. Zacks: rating change

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Piper Sandler restated an “overweight” rating and issued a $430.00 price target (up from $375.00) on shares of Broadcom in a research note on Friday, December 12th. Bank of America decreased their target price on shares of Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a report on Thursday. Royal Bank Of Canada dropped their target price on shares of Broadcom from $370.00 to $340.00 and set a “sector perform” rating for the company in a research report on Monday, March 2nd. Robert W. Baird set a $420.00 price target on shares of Broadcom in a research report on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft set a $430.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $435.30.

Insider Activity at Broadcom

In related news, CEO Hock E. Tan sold 130,000 shares of the stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $326.02, for a total transaction of $42,382,600.00. Following the transaction, the chief executive officer directly owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This represents a 17.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Henry Samueli sold 320,316 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $400.53, for a total transaction of $128,296,167.48. Following the completion of the sale, the director owned 37,326,540 shares of the company’s stock, valued at $14,950,399,066.20. The trade was a 0.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 779,101 shares of company stock worth $283,804,325 over the last quarter. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Broadcom

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

Broadcom Trading Down 0.5%

The business has a fifty day moving average of $333.75 and a 200-day moving average of $342.79. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.58 and a current ratio of 1.90. The company has a market capitalization of $1.57 trillion, a P/E ratio of 64.65, a PEG ratio of 1.06 and a beta of 1.22.

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.