Wolfe Research Upgrades Broadcom (NASDAQ:AVGO) to “Outperform”

Broadcom (NASDAQ:AVGO) was upgraded by equities research analysts at Wolfe Research from a “peer perform” rating to an “outperform” rating in a research report issued on Friday, MarketBeat.com reports. The brokerage presently has a $400.00 target price on the semiconductor manufacturer’s stock. Wolfe Research’s price target suggests a potential upside of 20.74% from the company’s current price.

A number of other analysts have also issued reports on AVGO. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $450.00 target price on shares of Broadcom in a report on Monday, January 5th. Royal Bank Of Canada began coverage on shares of Broadcom in a report on Wednesday, January 14th. They set a “sector perform” rating and a $370.00 price objective for the company. Piper Sandler restated an “overweight” rating and set a $430.00 target price (up previously from $375.00) on shares of Broadcom in a research report on Friday, December 12th. Robert W. Baird set a $420.00 price target on shares of Broadcom in a report on Friday, December 12th. Finally, Bank of America raised their price target on Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a report on Friday, December 12th. Two 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. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $437.28.

Broadcom Stock Performance

AVGO opened at $331.30 on Friday. The stock has a 50-day moving average of $355.76 and a 200-day moving average of $337.63. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. Broadcom has a 52-week low of $138.10 and a 52-week high of $414.61. The company has a market cap of $1.57 trillion, a PE ratio of 69.60, a price-to-earnings-growth ratio of 1.10 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $17.46 billion. During the same quarter in the prior year, the business earned $1.42 earnings per share. The company’s revenue was up 28.2% on a year-over-year basis. As a group, equities research analysts forecast that Broadcom will post 5.38 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Kirsten M. Spears sold 30,000 shares of the business’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $347.82, for a total value of $10,434,600.00. Following the completion of the transaction, the chief financial officer owned 277,237 shares of the company’s stock, valued at $96,428,573.34. The trade was a 9.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark David Brazeal sold 38,281 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $327.65, for a total transaction of $12,542,769.65. Following the completion of the sale, the insider owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. This represents a 12.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 779,901 shares of company stock worth $284,069,237 over the last quarter. 2.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after acquiring an additional 6,222,802 shares in the last quarter. State Street Corp raised its stake in shares of Broadcom by 0.5% in the 2nd quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer’s stock valued at $51,071,601,000 after purchasing an additional 873,963 shares during the period. Geode Capital Management LLC raised its stake in shares of Broadcom by 2.1% in the 2nd quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer’s stock valued at $29,827,649,000 after purchasing an additional 2,226,585 shares during the period. Norges Bank bought a new stake in shares of Broadcom in the second quarter valued at about $18,579,549,000. Finally, Invesco Ltd. boosted its position in shares of Broadcom by 1.8% during the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer’s stock worth $12,915,861,000 after buying an additional 700,021 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wolfe Research upgraded AVGO to “outperform” with a $400 price target, signaling analyst confidence and suggesting ~20% upside from current levels. AVGO: Broadcom just upgraded at Wolfe Research — here’s why
• Positive Sentiment: Coverage highlighting Broadcom’s custom AI chips as a viable alternative to GPUs is lifting sentiment — investors see revenue and market-share upside if hyperscalers broaden their vendor mix. Better Artificial Intelligence (AI) Stock: Broadcom vs. Nvidia
• Positive Sentiment: Macro tailwind: reports that hyperscalers plan to spend heavily on AI infrastructure in 2026 support longer-term demand for Broadcom’s data-center products. Hyperscalers to Spend Over $500 Billion on AI in 2026: Here Are the 3 Stocks to Buy
• Positive Sentiment: Prominent investors are taking stakes — reports say Cathie Wood’s fund bought roughly $26M of AVGO, which can attract momentum flows and retail attention. Jim Cramer doesn’t want to call the bottom on Broadcom (AVGO)
• Neutral Sentiment: Comparative coverage (Nvidia, AMD, Broadcom) keeps focus on competitive position—Nvidia remains the AI leader, which tempers how much market share Broadcom can capture. Nvidia vs. AMD vs. Broadcom: What’s the Best AI Chip Stock to Own for 2026
• Neutral Sentiment: Broadcom continues to show up in “top AI/infrastructure” lists and retail searches, boosting liquidity and attention but not guaranteeing immediate upside. Investors Heavily Search Broadcom Inc. (AVGO): Here is What You Need to Know
• Negative Sentiment: Critical analysis questions whether Broadcom’s valuation and capital allocation fully justify the AI hype — raises caution on buying at rich multiples. Broadcom’s AI Success Is Undeniable – The Investment Case Is Not
• Negative Sentiment: High-profile skeptics (e.g., Jim Cramer) say it’s too soon to call a bottom, which can keep some traders on the sidelines and add selling pressure during weakness. Jim Cramer doesn’t want to call the bottom on Broadcom (AVGO)

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.