TLDR
- Broadcom CEO Hock Tan sold $49.9 million in company shares on September 10, 2025
- Macquarie initiated coverage with Outperform rating and $420 price target
- Stock has gained 56% year-to-date driven by AI chip demand
- Q3 revenue jumped 22% to $15.95 billion with strong AI accelerator sales
- Multiple analysts raised price targets following earnings beat
Broadcom made headlines this week as CEO Hock Tan executed a major stock sale while Wall Street analysts increased their bullish bets on the semiconductor giant.
Tan sold 148,154 shares on September 10 for $49.9 million at an average price of $336.67 per share. The SEC filing disclosed on September 12 shows Tan still owns 825,998 Broadcom shares after the transaction.
The insider sale came as AVGO stock has surged 56% year-to-date, making it one of the top-performing semiconductor stocks in 2025.
Macquarie Sees Strong AI Growth Potential
Macquarie initiated coverage on Broadcom with an Outperform rating and $420 price target on Monday. The investment firm cited the company’s dominant position in the ASIC market as a key growth driver.
Analysts highlighted Broadcom’s near-monopoly in AI and cloud networking ASIC technology. They expect this positioning to generate substantial returns as artificial intelligence adoption accelerates across industries.
The research firm noted that ASIC market growth is outpacing traditional GPU market expansion. This trend benefits Broadcom as hyperscalers increasingly adopt specialized chip solutions for AI workloads.
Macquarie’s $420 price target represents 17% upside potential from current trading levels. The firm expects rising AI model complexity to increase Broadcom’s silicon content per server rack.
Strong Q3 Results Drive Analyst Optimism
Broadcom’s third-quarter earnings provided solid fundamentals behind the analyst enthusiasm. Revenue increased 22% year-over-year to $15.95 billion, driven by surging demand for custom AI accelerators and networking components.
Adjusted earnings reached $1.69 per share, up 36.3% from the prior year quarter. The company maintained gross profit margins of 77% despite increased investment in AI chip development.
Multiple analysts raised price targets following the earnings report. Mizuho increased its target to $410, while CFRA adjusted to $380 based on expanding AI semiconductor business.
Truist Securities raised its price target to $365 after noting growth in Broadcom’s AI infrastructure backlog. TD Cowen set a $370 target, highlighting strong results in the tensor processing unit segment.
Market Position Remains Dominant
TipRanks shows AVGO maintains a Strong Buy consensus rating from 27 Buy recommendations and two Hold ratings. The average analyst price target of $379.24 implies 5.38% upside potential.
However, insider trading data reveals a Negative Insider Confidence Signal based on $149.9 million in sell transactions over three months. This includes Tan’s recent $49.9 million sale.
Broadcom’s collaboration with major technology companies continues expanding. The company reportedly works with OpenAI on custom chip designs through supplier partnerships with companies like Celestica.
The stock trades with a market capitalization near $1.7 trillion. Revenue growth of 28% year-over-year demonstrates strong execution in the AI chip market as demand for specialized processors continues growing across multiple sectors.
