Broadcom Stock Attracts A Billionaire Buyer As AI Momentum Accelerates

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Hedge fund billionaire Daniel Loeb reshuffled his exposure in the semiconductor industry at Third Point LLC in the first quarter of FY26.

The investor opened a new position in Broadcom Inc. (NASDAQ: AVGO), acquiring 50,000 shares in the quarter.

Meanwhile, the company slashed its holdings in its peers, NVIDIA Corporation (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing Company (NYSE: TSM), during the quarter.

Holdings in NVIDIA were reduced from around 2.95 million shares to 190,000 shares. Loeb sharply cut Taiwan Semiconductor stake from about 425,000 shares to 275,000 shares.

AVGO: Earnings Snapshot

  • Broadcom reported first-quarter revenue of $19.31 billion, beating analyst estimates of $19.20 billion. The company posted adjusted earnings of $2.05 per share for the quarter, beating analyst estimates of $2.02 per share, according to Benzinga Pro.
  • The company expects fiscal second-quarter revenue of approximately $22 billion versus estimates of $20.68 billion and adjusted EBITDA at 68% of projected revenue.
  • Also, Broadcom announced a new $10 billion share repurchase program.
  • It has secured the high-bandwidth memory (HBM) and advanced-node manufacturing capacity at Taiwan Semiconductor needed to support its AI chip production through 2028, easing concerns about potential supply shortages.
  • CEO Hock Tan said the company expects AI chip revenue to exceed $100 billion in 2027, citing strong demand for custom silicon used by major technology companies.
  • Following the results, JPMorgan analyst Harlan Sur raised his price forecast to $500 from $475, citing strong momentum in Broadcom's AI business and growing demand for AI networking.
  • Goldman Sachs analyst James Schneider lifted his price forecast to $480 from $450, pointing to improved visibility into long-term AI demand.
  • Rosenblatt analyst Kevin Cassidy raised his price forecast to $500, highlighting stronger visibility into demand into 2027 and Broadcom's leadership in AI ASICs and networking.
  • Meanwhile, Benchmark analyst Cody Acree reiterated a Buy rating with a $485 price forecast, citing Broadcom's guidance, expanding hyperscaler customer base, and secured supply chain as factors supporting its AI growth outlook.
Recent Key Events

  • The company said it is expanding its role in artificial intelligence infrastructure with new networking products and systems designed to help large data centers move data faster and handle growing AI workloads.
  • Broadcom introduced a new chip designed to help move large amounts of data more efficiently inside data centers that support AI.
  • The company also launched Symantec CBX, a cloud-based security platform that combines Symantec and Carbon Black technologies into a single, easy-to-use system.
  • Broadcom and Carahsoft secured a five-year, $970 million deal from a U.S. defense agency to simplify how government departments buy and use software.
  • The company appointed Amie Thuener as its next chief financial officer, effective June 12, as current CFO Kirsten Spears prepares to retire.
  • Broadcom signed a landmark agreement with Anthropic and Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to secure multiple gigawatts of next-generation Tensor Processing Unit capacity, expected to come online starting in 2027.
  • The company announced a collaboration with Samsung Electronics Co., Ltd. (OTC: SSNLF) to launch what it called the industry's first integrated 5G and Wi-Fi 8 fixed wireless access platform.
  • Also, Broadcom penned a deal with Meta Platforms, Inc. (NASDAQ: META) for the foundation of a multi-gigawatt infrastructure rollout through 2029.
  • Broadcom, along with Applied Materials Inc. (NASDAQ: AMAT), GlobalFoundries Inc. (NASDAQ: GFS), Meta and Synopsys, Inc. (NASDAQ: SNPS) partnered with the UCLA Samueli School of Engineering to launch a $125 million Semiconductor Hub aimed at accelerating research and workforce development in artificial intelligence-powered chip technologies.
TECHNICAL MOMENTUM:

Broadcom (AVGO) is currently experiencing strong upward momentum, with a daily change of 3.14%. The stock is trading significantly above its 50-day ($383.08), 100-day ($357.59), and 200-day ($351.63) moving averages, indicating a bullish trend. Key resistance is observed near the 52-week high of $442.36, while support can be identified around the 50-day moving average.

AVGO Stock Price Activity: Broadcom shares were up 3.14% at $439.96 at the time of publication Friday. Over the past month, AVGO has gained about 9.0% versus a 6.4% rise in the S&P 500 and is up roughly 25% year-to-date compared to the index's 10.4% gain.