AVGO dipped 6% on Friday, piquing interest among retail investors ahead of the chipmaker’s quarterly report due early next month.
- Bleeping Computer reported earlier in the week that hackers were actively exploiting a VMware vulnerability to gain persistent remote access to the system.
- Broadcom will report third-quarter results on Sept. 2.
- Stocktwits sentiment for AVGO rose following Friday’s dip and was ‘bullish’ on Sunday.
Broadcom’s shares rose 0.4% in overnight trading late Sunday, modestly rebounding after a steep fall in the previous session, while retail traders on Stocktwits pushed buy calls.
AVGO stock dropped 6% on Friday, its worst fall in over two months. Tech news site Bleeping Computer reported the previous day that hackers were actively exploiting a newly patched critical VMware vulnerability to gain persistent remote access to systems across 47 countries.
VMware is a major revenue engine for Broadcom, forming the core of its infrastructure-software business and generating tens of billions of dollars in annual revenue since Broadcom acquired it in 2023.
Retail Turns Bullish On AVGO
Still, the dip attracted bullish calls, particularly as traders positioned ahead of the company’s quarterly earnings report due on Sept. 2. On Stocktwits, the retail sentiment rose sharply over the weekend to ‘bullish’ with the ticker trading among the top three as of Sunday night.
“$AVGO hoping Friday’s big drop was a buying opportunity. I dipped my toe in the water because it was holding above the 50-day moving average. It would be nice to see 400,” said a trader, while another wrote: “$AVGO people are going to be buying this hand over fist tomorrow morning.”
Broadcom has perplexed investors. Many see it as a key beneficiary of the AI boom, with massive chip deals with Google and Meta Platforms. Still, the stock has lagged peers: AVGO is up 14% year to date, while the iShares Semiconductor ETF (SOXX) has gained 83% over the same period.
AVGO Results Watch
Analysts expect Broadcom’s third-quarter revenue to rise 85% to $29.4 billion, which would be its strongest pace of growth since 2016, per estimates from Koyfin. Adjusted earnings are expected to increase 92% to $3.24 per share.
Currently, 44 out of 48 analysts rate the stock ‘Buy’ or higher, and four rate it ‘Hold,’ per Koyfin. Their average price target of $527.88 implies a 34% upside from the stock’s last close.
AVGO Investor Moves
The latest investor positions show a mixed picture for Broadcom. Dan Loeb’s Third Point and Stanley Druckenmiller’s Duquesne exited their Broadcom positions, selling 50,000 and 195,955 shares, respectively, according to their latest 13-F filings.
On the other side, David Tepper’s Appaloosa opened a new 150,000-share Broadcom position worth about $56.7 million, while Tiger Global cut its stake by 1.83 million shares, or 51%.
Among prominent hedge funds, the notable Q2 moves leaned toward trimming or exiting Broadcom, with Tepper standing out as a new buyer.
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