Broadcom (NASDAQ:AVGO) Upgraded at Zacks Research

Zacks Research upgraded shares of Broadcom (NASDAQ:AVGO) from a hold rating to a strong-buy rating in a research report report published on Tuesday,Zacks.com reports.

Several other research analysts have also weighed in on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. Piper Sandler reaffirmed an “overweight” rating and set a $430.00 price target (up previously from $375.00) on shares of Broadcom in a research note on Friday, December 12th. Susquehanna reissued a “positive” rating and set a $450.00 price objective (up from $400.00) on shares of Broadcom in a research note on Thursday, December 4th. Morgan Stanley upped their price objective on Broadcom from $443.00 to $462.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and issued a $475.00 target price (up previously from $400.00) on shares of Broadcom in a report on Friday, December 12th. Three research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Broadcom presently has an average rating of “Buy” and a consensus price target of $437.28.

Broadcom Price Performance

AVGO stock opened at $310.51 on Tuesday. The stock has a market capitalization of $1.47 trillion, a price-to-earnings ratio of 65.23, a price-to-earnings-growth ratio of 0.99 and a beta of 1.21. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76. Broadcom has a 52-week low of $138.10 and a 52-week high of $414.61. The stock’s fifty day simple moving average is $350.00 and its 200-day simple moving average is $338.20.

Broadcom (NASDAQ:AVGO) last released its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The firm had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same period in the prior year, the firm posted $1.42 earnings per share. The business’s quarterly revenue was up 28.2% compared to the same quarter last year. Equities research analysts expect that Broadcom will post 5.38 EPS for the current year.

Broadcom Increases Dividend

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

Insiders Place Their Bets

In other Broadcom news, CEO Hock E. Tan sold 70,000 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were 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 owned 132,836 shares of the company’s stock, valued at $46,133,942.80. This trade represents a 34.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction of $10,413,600.00. Following the sale, the insider owned 210,573 shares in the company, valued at $73,094,099.76. This represents a 12.47% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 779,901 shares of company stock valued at $284,069,237. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Large investors have recently added to or reduced their stakes in the company. Sequent Planning LLC lifted its holdings in Broadcom by 23.2% in the 4th quarter. Sequent Planning LLC now owns 872 shares of the semiconductor manufacturer’s stock worth $302,000 after buying an additional 164 shares in the last quarter. Intrua Financial LLC increased its position in shares of Broadcom by 3.2% during the fourth quarter. Intrua Financial LLC now owns 24,426 shares of the semiconductor manufacturer’s stock worth $8,454,000 after acquiring an additional 755 shares during the last quarter. Odyssey Capital Advisors Inc. acquired a new position in shares of Broadcom in the fourth quarter worth about $2,091,000. TD Private Client Wealth LLC boosted its holdings in Broadcom by 16.5% in the fourth quarter. TD Private Client Wealth LLC now owns 64,927 shares of the semiconductor manufacturer’s stock valued at $22,471,000 after purchasing an additional 9,193 shares during the last quarter. Finally, Arrow Financial Corp grew its stake in Broadcom by 23.6% during the 4th quarter. Arrow Financial Corp now owns 4,904 shares of the semiconductor manufacturer’s stock valued at $1,697,000 after purchasing an additional 937 shares in the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Hyperscaler AI capex ramp — Strong capital‑expenditure guidance from Alphabet and Meta increases expected demand for Broadcom’s custom AI chips and datacenter silicon, supporting revenue outlook for 2026 and beyond. Recent coverage highlights this direct linkage as a primary bullish catalyst. Alphabet’s AI Spending Story
• Positive Sentiment: Analyst upgrade — Zacks moved AVGO from “hold” to “strong‑buy,” a near‑term catalyst that can attract momentum money and validate the upside case for investors. Zacks Upgrade
• Positive Sentiment: Product and partnership momentum — Broadcom announced enterprise Wi‑Fi 8 access point and switch solutions and continues to be cited as a co‑developer of hyperscaler accelerators (TPUs/MTIA), reinforcing its role in the AI supply chain. Wi‑Fi 8 Product Announcement
• Neutral Sentiment: Analyst/peer context — Several pieces compare AVGO to semiconductor peers and re‑rate targets; these provide useful valuation context but don’t change the core demand story. Investors should watch forward EPS/PE multiples in these reports. Peer Comparison
• Neutral Sentiment: Media commentary — High‑profile bullish commentary (e.g., Jim Cramer) supports sentiment but includes caveats about timing; market‑wide volatility may mute immediate follow‑through. Cramer Commentary
• Negative Sentiment: Recent share pullback and volatility — AVGO has declined meaningfully from its recent highs (including a sharp intraday drop reported by some outlets), reflecting profit‑taking, rotational flows out of growth tech and stretched valuation concerns after last year’s surge. Recent Pullback Coverage
• Negative Sentiment: Mixed market backdrop — Futures and sector rotation headlines are creating two‑way trading; broader tech profit‑taking can pressure AVGO even if company‑specific fundamentals remain strong. Market Futures

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.