TLDR
- Broadcom (AVGO) stock rose 4.69%, hitting $371.46, driven by news of multi-year AI chip deals with Google and Anthropic
- Three insiders sold a combined $14.8 million in stock around the time of the rally, including President Charlie Kawwas ($3.45M) and ISG President S. Ram Velaga ($10.6M)
- Broadcom beat Q1 earnings with EPS of $2.05 vs. the $2.03 estimate, on revenue of $19.31 billion — up 29.5% year-over-year
- Analysts remain broadly bullish with an average price target of $435.30 and a “Moderate Buy” consensus; Barclays raised its target to $500
- Seaport Global issued a downgrade and Seaport Research gave a “Neutral” rating, flagging valuation concerns
Broadcom locked multi-year AI chip deals with Google and Anthropic on April 10, 2026. The news sent AVGO up $16.55, or 4.69%, to close at $371.46 on volume of nearly 30 million — well above its average of 26.4 million.
The deals position Broadcom as a key supplier of custom AI accelerators and networking chips to two of the biggest hyperscalers in the business. Analysts say this re-rates the company as a core AI infrastructure play.
Barclays already had a $500 price target on the stock. Rosenblatt and KeyCorp are also at $500, while Benchmark has a $485 target. The consensus across 33 analysts sits at a “Moderate Buy” with an average target of $435.30.
Not everyone is buying in. Seaport Global downgraded the stock, and Seaport Research slapped on a “Neutral” rating. The concerns center on valuation and questions around margin sustainability as deal economics become clearer.
Insiders Sell Into the Strength
While the stock was climbing, three insiders were quietly cashing out.
Charlie Kawwas, President of the Semiconductor Solutions Group, sold 10,000 shares at $345.23, netting $3.45 million. That trimmed his stake by 1.25%, leaving him with 787,184 shares worth around $271.8 million.
S. Ram Velaga, President of the Infrastructure Software Group, sold 30,215 shares for $10.64 million. Director Justine Lien also sold 2,018 shares for $712,354. Together, the three transactions totalled roughly $14.8 million.
Insider sales during a rally aren’t unusual, but the timing and scale drew attention.
Fundamentals Hold Up
Broadcom’s last earnings report, released March 4, showed EPS of $2.05 against a $2.03 estimate. Revenue came in at $19.31 billion versus the $19.10 billion consensus — a 29.5% year-over-year increase.
Net margin stood at 36.57% and return on equity at 38.61%. The company paid a $0.65 quarterly dividend on March 31, representing a 0.7% yield.
Analysts forecast full-year EPS of $5.38. The stock trades at a P/E of 72.55 with a price-to-earnings-growth ratio of 0.73.
The 12-month range runs from $161.61 to $414.61, and the stock is currently trading above its 50-day moving average of $325.37 but below its 200-day of $342.86.
Institutional Buying
On the institutional side, Vanguard, State Street, Geode Capital, T. Rowe Price, and Norges Bank all added to positions in Q4. Vanguard alone holds over 482 million shares valued at $167 billion. Institutional investors and hedge funds own 76.43% of the float.
Reports also indicate Israel Englander and Ken Fisher increased exposure to AVGO in recent weeks.
The stock’s current market cap stands at approximately $1.76 trillion.
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