The picture at Broadcom is one of stark contrasts. Co‑founder Henry Samueli just unloaded roughly 694,000 shares for $250 million through a trading plan set in December, while the company simultaneously reported that its AI chip revenue more than doubled in the fiscal second quarter. The stock, however, closed June down 16.5% — its worst monthly performance since March 2025 — and remains 23% below the 52‑week high of €429.60 touched earlier in the month.
Samueli’s sale on June 24 is part of a broader insider exodus. Over the past three months, he has pulled more than $651 million from Broadcom positions. Chief Legal Officer Mark Brazeal also sold 25,000 shares last week for roughly $9.7 million. The timing is notable: Broadcom shares slid sharply during June, leaving them at €328.90 — just over 6% above the 200‑day moving average of €310.84. The RSI sits at 44, indicating neither overbought nor deeply oversold conditions.
Despite the insider selling, the underlying business is firing on all cylinders. Broadcom closed the second quarter with revenue of $22.2 billion, a 48% year‑over‑year jump. The AI semiconductor segment alone generated $10.8 billion — a 143% surge — pushing adjusted earnings per share to $2.44, slightly above analyst expectations. Gross margin did contract 2.3 percentage points to 77.1%, a direct consequence of the growing mix of high‑volume AI chips.
CEO Hock Tan is betting the AI momentum will accelerate. He has set a Q3 target of $16 billion in AI chip sales — a 200% increase from last year’s comparable period — and a full‑year 2026 goal of $56 billion from AI. The company’s roadmap includes the “Jalapeño” AI accelerator developed with OpenAI and a long‑term Alphabet contract for Tensor Processing Units that runs through 2031.
Should investors sell immediately? Or is it worth buying Broadcom?
Wall Street is largely siding with Tan rather than the insiders. Jefferies reiterated its “Buy” rating and $550 price target, citing visibility into fiscal 2028 earnings and progress on AI chips. JPMorgan went further, calling the roughly 24% pullback from record highs a “golden entry point,” arguing the market undervalues Broadcom’s strength in advanced packaging and long‑term AI infrastructure opportunities. Erste Group Bank raised its earnings estimates for fiscal 2026 and 2027.
Amid the growth phase, Broadcom is also changing its finance leadership. Kirsten Spears is stepping down as CFO, replaced by Amie Thuener. The quarterly dividend remains unchanged at $0.65 per share, yielding about 0.7% — the 15th straight year of increases, though the stock’s appeal remains firmly tied to its growth narrative rather than its payout.
Trading activity on Tuesday reached $10.75 billion, reflecting a broad realignment of positions within the AI infrastructure space. The next quarterly results are expected in September 2026, leaving investors to weigh the director‑level exits against the explosive AI revenue trajectory and the chorus of buy calls from analysts who see the recent correction as a buying opportunity.
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