Broadcom (NASDAQ:AVGO) Shares Up 1.2% Following Earnings Beat

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 1.2% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $322.64 and last traded at $317.53. Approximately 28,952,226 shares changed hands during trading, an increase of 15% from the average daily volume of 25,109,990 shares. The stock had previously closed at $313.84.

The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to analysts’ expectations of $19.10 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 29.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.60 EPS.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a dividend of $0.65 per share. 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 dividend on an annualized basis and a yield of 0.8%. Broadcom’s payout ratio is currently 54.62%.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q1 results beat estimates — Broadcom reported non-GAAP EPS of $2.05 and revenue of $19.31B (up ~29% YoY), beating consensus and showing strong margin and cash-generation metrics; this underpins today’s upside reaction. Broadcom Q1 Results & Guidance Press Release
• Positive Sentiment: Second-quarter revenue guide topped expectations — management guided Q2 revenue around $22.0B versus ~ $20.4B consensus, signaling continued demand for data-center and AI-related products. Reuters: Broadcom forecasts Q2 revenue above estimates
• Positive Sentiment: AI revenue surge and capital return boost — Broadcom said AI-related revenue more than doubled and unveiled a new $10B share repurchase program plus a $0.65 quarterly dividend, both supportive of EPS and buyback-driven shareholder returns. FXEmpire: Broadcom jumps after hours on earnings beat, AI outlook
• Neutral Sentiment: Analyst coverage and price-target dispersion — Wall Street remains largely constructive (multiple buy/outperform ratings and a median ~ $450 target), which supports medium-term upside, though targets vary. Quiver: Analyst ratings, targets and institutional flows
• Neutral Sentiment: Macro/market backdrop is supportive — broader markets moved higher as geopolitical risk fears eased today, which helped sentiment into earnings season. Zacks: Markets close higher as Iran fears abate
• Negative Sentiment: Insider selling and CEO pay scrutiny — filings and reporting show large insider sales and a reported CEO pay package that has drawn attention; such governance headlines can weigh on sentiment for some investors. Quiver: CEO 2025 pay revealed
• Negative Sentiment: Valuation and recent price weakness — AVGO entered the quarter trading below its highs and some outlets/analysts have flagged valuation and momentum concerns despite the beat, leaving upside contingent on sustained AI demand. AmericanBankingNews: RBC issues pessimistic forecast

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Wells Fargo & Company raised shares of Broadcom from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $410.00 to $430.00 in a report on Thursday, January 15th. Zacks Research upgraded Broadcom from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. DA Davidson raised Broadcom to a “hold” rating in a research note on Friday, February 13th. Raymond James Financial set a $420.00 target price on Broadcom and gave the stock an “outperform” rating in a report on Thursday, November 20th. Finally, Truist Financial increased their price target on Broadcom from $500.00 to $510.00 and gave the company a “buy” rating in a report on Friday, December 19th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Broadcom has an average rating of “Buy” and a consensus target price of $432.13.

Insider Activity at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 130,000 shares of the company’s stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the transaction, the chief executive officer directly owned 595,638 shares in the company, valued at $194,189,900.76. This represents a 17.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark David Brazeal sold 38,281 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $327.65, for a total transaction of $12,542,769.65. Following the transaction, the insider directly owned 266,494 shares in the company, valued at approximately $87,316,759.10. This trade represents a 12.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 779,101 shares of company stock valued at $283,804,325. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its position in Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in shares of Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after buying an additional 756 shares in the last quarter. United Bank grew its position in shares of Broadcom by 76.5% in the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock worth $392,000 after buying an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of Broadcom by 10.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock worth $3,499,000 after acquiring an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC raised its stake in shares of Broadcom by 10.5% during the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock worth $1,098,000 after acquiring an additional 378 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Price Performance

The company has a market cap of $1.51 trillion, a PE ratio of 66.71, a PEG ratio of 1.00 and a beta of 1.22. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The stock’s 50-day moving average is $334.52 and its 200 day moving average is $342.68.

Broadcom Company Profile

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.