Broadcom (NASDAQ:AVGO) Shares Gap Down – Here’s What Happened

Posted by Geri Gentry on Jun 4th, 2026

Broadcom Inc. (NASDAQ:AVGO – Get Free Report)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $479.23, but opened at $408.99. Broadcom shares last traded at $405.2990, with a volume of 20,686,747 shares.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom posted record second-quarter revenue of $22.19 billion and adjusted EPS of $2.44, both above estimates, while AI semiconductor revenue more than doubled to $10.8 billion, underscoring continued demand for custom AI chips.
Positive Sentiment: The company guided third-quarter revenue to about $29.4 billion, ahead of consensus, and several Wall Street firms raised price targets or reaffirmed bullish ratings, including Truist, TD Cowen, Rosenblatt, Cantor Fitzgerald, and Benchmark.
Neutral Sentiment: Broadcom also announced a quarterly dividend of $0.65 per share, reinforcing its cash-generation profile and shareholder returns.
Negative Sentiment: Despite the beat, Broadcom shares sold off sharply after the report as investors focused on what they saw as a softer-than-expected AI outlook and the possibility that the stock had already priced in near-perfect execution. Article Title
Negative Sentiment: The broader semiconductor group is also being hit, with Micron, Marvell, AMD, and other chip names moving lower as traders reassess how much AI demand can accelerate from here. Article Title

Analysts Set New Price Targets

AVGO has been the subject of a number of research reports. DA Davidson raised their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a “neutral” rating in a report on Thursday. Oppenheimer restated an “outperform” rating and issued a $535.00 price target on shares of Broadcom in a report on Thursday. Evercore restated an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Seaport Research Partners reiterated a “neutral” rating on shares of Broadcom in a report on Wednesday, April 8th. Finally, Wall Street Zen lowered Broadcom from a “buy” rating to a “hold” rating in a report on Saturday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $480.63.

Check Out Our Latest Analysis on Broadcom

Broadcom Stock Performance

The firm has a market cap of $1.96 trillion, a P/E ratio of 80.72, a PEG ratio of 0.99 and a beta of 1.41. The company’s 50-day moving average is $392.87 and its two-hundred day moving average is $361.19. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.58 earnings per share. As a group, equities analysts predict that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a $0.65 dividend. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom’s dividend payout ratio is 50.78%.

Insider Transactions at Broadcom

In other Broadcom news, Director Justine Page sold 2,018 shares of the company’s stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the sale, the director directly owned 18,164 shares of the company’s stock, valued at approximately $6,411,892. This represents a 10.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider S. Ram Velaga sold 8,000 shares of the company’s stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares of the company’s stock, valued at $21,464,964.64. The trade was a 12.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the business. Fullerton Advisors LLC boosted its stake in Broadcom by 1.3% during the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after buying an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co boosted its stake in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after buying an additional 25 shares during the period. RFG Holdings Inc. boosted its stake in Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after buying an additional 26 shares during the period. Yukon Wealth Management Inc. boosted its stake in Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after buying an additional 26 shares during the period. Finally, Capital Planning LLC boosted its stake in Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after buying an additional 28 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

(Get Free Report)

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.