Broadcom (NASDAQ:AVGO) Trading Up 2.5% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded up 2.5% on Friday . The company traded as high as $354.51 and last traded at $351.71. 31,058,791 shares were traded during trading, an increase of 25% from the average session volume of 24,844,691 shares. The stock had previously closed at $343.02.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst bullishness around AI upside — Jefferies named Broadcom one of three chip stocks with expected earnings upside as AI demand accelerates, reinforcing growth expectations for AVGO. 3 Chip Stocks to Buy for 2026, According to an Analyst
• Positive Sentiment: Higher Wall Street targets and estimates — KeyCorp reiterated an Overweight stance with a $500 price target and raised multi-quarter EPS projections, supporting upside expectations for growth and margins. KeyCorp estimates and rating
• Positive Sentiment: Institutional buying signal — Cathie Wood’s ARK added to Broadcom, a visible endorsement for growth-oriented investors focused on AI exposure. Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
• Positive Sentiment: Sell-side defense on competitive fears — Bernstein and Seeking Alpha pieces push back on AI-competition and margin worries, reducing tail-risk narratives that could have pressured shares. Bernstein Dismisses AI Competition Fears Surrounding Broadcom (AVGO)
• Positive Sentiment: Industry tailwind — TSMC’s strong results lifted chip stocks broadly, providing positive momentum for Broadcom as investors rotate into AI/infrastructure plays. Chip stocks pop after TSMC’s earnings beat
• Neutral Sentiment: RBC initiates coverage with Sector Perform — a neutral/steadying rating that removes uncertainty but doesn’t add strong buy-side pressure. RBC Capital initiates coverage of Broadcom
• Negative Sentiment: Debt issuance may worry some investors — Broadcom filed for a $4.5B senior notes offering to fund operations and repay loans; higher leverage or signaling needs for cash can temper sentiment. Broadcom Issues $4.5B in Notes as AI Concerns Linger
• Negative Sentiment: Insider selling headlines — recent reports of ~$490M in insider sales and a CEO sale (~$24M) are being viewed negatively by some investors as a signal of management liquidity or timing. Broadcom Insiders Sold US$490m Of Shares
• Negative Sentiment: Geopolitical risk — reports that China banned Broadcom’s cybersecurity products introduce potential revenue/market-access risk in a key region. China Just Banned Broadcom’s Cybersecurity Solutions
• Negative Sentiment: Valuation concerns — Zacks highlights a high price-to-sales multiple and flags the stock as overvalued, which can pressure momentum investors. At 15.93 P/S, Broadcom Is Overvalued

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent analyst reports. The Goldman Sachs Group reiterated a “buy” rating and set a $450.00 price objective on shares of Broadcom in a research report on Monday, January 5th. Evercore ISI upped their price target on shares of Broadcom from $342.00 to $403.00 and gave the company an “outperform” rating in a research report on Wednesday, October 15th. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on Broadcom and gave the stock a “buy” rating in a research report on Friday, December 12th. Cowen restated a “buy” rating on shares of Broadcom in a research report on Friday, December 12th. Finally, Rosenblatt Securities raised their target price on Broadcom from $400.00 to $440.00 and gave the stock a “buy” rating in a research note on Tuesday, December 9th. Three research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $438.61.

Broadcom Price Performance

The business has a 50-day moving average of $358.94 and a 200 day moving average of $332.69. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $1.67 trillion, a P/E ratio of 73.89, a price-to-earnings-growth ratio of 1.14 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. The firm had revenue of $18.02 billion during the quarter, compared to analysts’ expectations of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.42 earnings per share. On average, sell-side analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date of this dividend was Monday, December 22nd. Broadcom’s payout ratio is 54.62%.

Insider Buying and Selling

In other news, CEO Hock E. Tan sold 70,000 shares of the stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total value of $24,311,000.00. Following the completion of the sale, the chief executive officer directly owned 132,836 shares of the company’s stock, valued at $46,133,942.80. This represents a 34.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 30,000 shares of Broadcom stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $347.12, for a total value of $10,413,600.00. Following the transaction, the insider directly owned 210,573 shares in the company, valued at approximately $73,094,099.76. The trade was a 12.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 779,901 shares of company stock worth $284,069,237 over the last ninety days. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Large investors have recently bought and sold shares of the stock. StoneCrest Wealth Management Inc. grew its position in Broadcom by 20.3% in the 4th quarter. StoneCrest Wealth Management Inc. now owns 3,611 shares of the semiconductor manufacturer’s stock worth $1,250,000 after purchasing an additional 610 shares in the last quarter. MRA Advisory Group boosted its stake in shares of Broadcom by 12.1% in the 4th quarter. MRA Advisory Group now owns 5,095 shares of the semiconductor manufacturer’s stock worth $1,763,000 after buying an additional 549 shares during the last quarter. Bouchey Financial Group Ltd grew its holdings in shares of Broadcom by 19.0% in the fourth quarter. Bouchey Financial Group Ltd now owns 2,526 shares of the semiconductor manufacturer’s stock valued at $874,000 after acquiring an additional 403 shares in the last quarter. Aspire Capital Advisors LLC purchased a new stake in shares of Broadcom during the fourth quarter valued at approximately $244,000. Finally, M3 Advisory Group LLC lifted its holdings in Broadcom by 1.1% during the fourth quarter. M3 Advisory Group LLC now owns 5,941 shares of the semiconductor manufacturer’s stock worth $2,056,000 after acquiring an additional 65 shares during the period. 76.43% of the stock is currently owned by institutional investors.

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.