Broadcom Chief Executives Sells $77 Million in Company Stock

Broadcom Inc. CEO Hock Tan has sold approximately $77 million worth of the company's shares in a series of transactions executed over a two-week period. These sales, which occurred as the stock traded near its all-time highs, represent nearly one-third of his direct holdings in the semiconductor giant. The move has captured investor attention, coming at a time when Broadcom is reporting record-breaking financial performance driven by artificial intelligence.

According to regulatory filings, two significant transactions were completed in December 2025:

• On December 18, 2025, Tan sold 130,000 shares at an average price of $326.02, generating proceeds of $42.38 million.
• A second sale occurred on December 23, 2025, involving 100,000 shares at $345.65 each, for an additional $34.56 million.

Following these disposals, Tan's direct ownership stands at 495,638 shares, marking a 32% reduction from his position at the beginning of December. While such sales are often part of pre-arranged tax or estate planning strategies, their timing and scale have sparked discussion. The transactions followed closely after Broadcom's stock reached a then-record high of $353.15 on December 10, 2025.

Robust Business Performance Provides Counterpoint

The company's operational results present a starkly positive picture. In mid-December, Broadcom announced impressive figures for its fiscal fourth quarter of 2025:

Should investors sell immediately? Or is it worth buying Broadcom?

• Revenue climbed 28.2% to $18.02 billion.
• Earnings per share of $1.95 surpassed analyst estimates of $1.87.
• AI-related revenue surged 76% to $6.5 billion.

Notably, for the current first quarter of fiscal 2026, Broadcom provided guidance anticipating AI chip revenue of $8.2 billion. This growth is fueled by strong demand for custom AI accelerators and its Tomahawk Ethernet switches designed for large-scale AI clusters. The company also increased its quarterly dividend to $0.65 per share.

Market Analysts Maintain Bullish Stance

Wall Street analysts appear largely unfazed by the insider selling activity. UBS recently raised its price target for Broadcom to $475, implying a potential upside of over 35% from recent levels. Market experts at the firm interpret the sales as a routine portfolio diversification move rather than a concerning signal.

The consensus view anticipates Broadcom generating more than $60 billion in revenue for fiscal 2026. This optimism is rooted in the expected "second wave" of AI spending, which is shifting focus toward inference and networking technology. Broadcom is seen as well-positioned here, with its open Ethernet standards gaining ground against proprietary InfiniBand systems.

Next Catalyst: Quarterly Results on March 4

The company's next financial update, scheduled for March 4, 2026, will serve as a key test. Investors will scrutinize whether Broadcom meets its projected $8.2 billion AI revenue target and maintains its pricing power in the custom chip market. From a technical perspective, the stock remains in a long-term uptrend but is currently consolidating gains following its recent rally.