Key Highlights
- AVGO shares climbed 4.69% to reach $371.46 following the announcement of long-term AI chip partnerships with Google and Anthropic
- Executive stock sales totaling $14.8 million occurred during the rally, with President Charlie Kawwas offloading $3.45M and ISG President S. Ram Velaga selling $10.6M
- First-quarter results exceeded expectations with earnings per share of $2.05 compared to the projected $2.03, while revenue of $19.31 billion represented a 29.5% annual increase
- Wall Street maintains a generally optimistic outlook with a consensus price target of $435.30 and “Moderate Buy” rating; Barclays established a $500 target
- Some caution emerged as Seaport Global downgraded the stock and Seaport Research assigned a “Neutral” stance due to valuation questions
On April 10, 2026, Broadcom announced multi-year contracts to supply AI chips to both Google and Anthropic. The revelation propelled AVGO shares higher by $16.55, representing a 4.69% gain to settle at $371.46. Trading volume reached nearly 30 million shares, surpassing the typical daily average of 26.4 million.
These agreements establish Broadcom as a primary provider of specialized AI accelerators and networking silicon to two leading hyperscale cloud operators. Market observers suggest this development strengthens the company’s standing as a fundamental AI infrastructure provider.
Barclays maintains a $500 price objective for the shares. Both Rosenblatt and KeyCorp have also set $500 targets, while Benchmark projects $485. The average forecast among 33 Wall Street analysts stands at $435.30 with a “Moderate Buy” recommendation.
Skepticism exists in certain quarters. Seaport Global reduced its rating on the stock, while Seaport Research assigned a “Neutral” stance. These cautious views stem from valuation considerations and uncertainty regarding profit margin durability as contract terms become more transparent.
Executive Stock Liquidation During Price Advance
As shares appreciated, three company executives executed significant stock sales.
Charlie Kawwas, who leads the Semiconductor Solutions Group as President, disposed of 10,000 shares at $345.23 per share, generating proceeds of $3.45 million. This transaction reduced his holdings by 1.25%, with 787,184 shares remaining, valued at approximately $271.8 million.
S. Ram Velaga, serving as President of the Infrastructure Software Group, liquidated 30,215 shares for $10.64 million in total value. Board Director Justine Lien sold 2,018 shares, receiving $712,354. The combined value of these three transactions reached approximately $14.8 million.
Executive stock sales during price rallies occur regularly, though the magnitude and synchronization of these transactions attracted market attention.
Strong Financial Performance Continues
Broadcom’s most recent quarterly results, published on March 4, delivered earnings per share of $2.05, beating the $2.03 analyst projection. Revenue reached $19.31 billion, exceeding the $19.10 billion forecast and marking a 29.5% increase from the prior year period.
Profit margins remained robust with net margin at 36.57% and return on equity measuring 38.61%. A quarterly dividend of $0.65 per share was distributed on March 31, yielding 0.7% annually.
Wall Street projects full-year earnings per share of $5.38. The stock currently trades at a price-to-earnings multiple of 72.55 and a price-to-earnings-growth ratio of 0.73.
The 52-week trading range spans from $161.61 to $414.61. Current pricing sits above the 50-day moving average of $325.37 while remaining below the 200-day moving average of $342.86.
Major Institutional Accumulation
Large institutional investors including Vanguard, State Street, Geode Capital, T. Rowe Price, and Norges Bank expanded their positions during the fourth quarter. Vanguard’s holdings exceed 482 million shares with a valuation of $167 billion. Institutional investors and hedge funds control 76.43% of available shares.
Recent filings show that Israel Englander and Ken Fisher both increased their AVGO allocations in recent trading periods.
The company’s current market capitalization approximates $1.76 trillion.
