Morningstar named this dividend fund one of the best. Where its manager sees opportunity right now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2025
0mins
Source: CNBC
Investment Strategy: Christopher Buchbinder, portfolio manager of the Capital Group Dividend Value ETF (CGDV), emphasizes a contrarian investment approach, focusing on undervalued sectors like healthcare and aerospace, while maintaining a long-term perspective to reduce volatility for investors.
Performance and Holdings: CGDV has consistently outperformed benchmarks, yielding 1.81% compared to the S&P 500's 1.25%, with top holdings in companies like Eli Lilly, UnitedHealth, Microsoft, and Broadcom, indicating confidence in their future growth despite current market challenges.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to fall
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 459.970
Low
370.00
Averages
457.75
High
525.00
Current: 459.970
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom Q2 Earnings Preview: Strong AI Demand
- Strong Earnings Expectations: Broadcom is projected to report Q2 earnings of $2.40 per share, reflecting a 51.9% year-over-year increase, with revenues expected to reach $22.12 billion, up 47.5%, indicating robust growth driven by AI-related demand.
- Record of Exceeding Expectations: The company has consistently surpassed consensus EPS estimates for eight consecutive quarters and has beaten revenue forecasts 88% of the time, showcasing its strong market performance and investor confidence.
- Positive Analyst Sentiment: In the last three months, Broadcom's earnings estimates have seen 35 upward revisions with no downward adjustments, reflecting a bullish outlook, particularly regarding its AI semiconductor business.
- Customer Agreements Boost Confidence: Recent long-term agreements with Anthropic, Google, and Meta are expected to enhance AI infrastructure expansion, further solidifying Broadcom's leadership in the AI market, especially with a target of over $100 billion in AI chip revenue by 2027.
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- New Investors Onboard: The funding round attracted new investors such as AMD and Red Dot Capital, while existing investors Pitango and D1 Capital Partners also participated, further strengthening the company's capital base and competitive position in the market.
- Surging Market Demand: CEO Ido Susan stated that the proceeds will be used to meet the increasing demand for large-scale AI infrastructure, reflecting the rapid growth in the AI sector and the urgent need for efficient network solutions.
- Significant Technological Advantage: DriveNets' technology enables telecommunications operators and data centers to build and manage networks using standard hardware, reducing reliance on costly proprietary systems, thereby enhancing network performance and supporting AI workloads, aligning with market expectations for high-performance networks.
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- Market Uptrend: The S&P 500 rose 0.13% on Tuesday, marking its ninth consecutive day of gains, the longest streak since last May, and is up 20% from March lows, indicating a robust market recovery.
- Job Data Focus: ADP is set to release May payroll numbers on Wednesday, with economists expecting a gain of 110,000 jobs, slightly above April's 109,000, as investors watch for implications on the Fed's policy direction.
- Tech Stock Surge: HPE shares soared 19.5% on Tuesday, the largest jump since its 2015 spin-off, driven by strong AI-related demand, and are up 133% year-to-date, reflecting robust market demand and investor confidence.
- Cryptocurrency Decline: Bitcoin fell below $70,000, hitting its lowest level since April, alongside Ethereum dropping below $2,000, showcasing the volatility in the crypto market and cautious investor sentiment.
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- Strong Market Performance: The S&P 500 rose by 0.13%, the Dow Jones by 0.45%, and the Nasdaq 100 by 0.48%, with all three indices reaching new all-time highs, reflecting strong investor confidence in tech stocks amid a surge in AI investments.
- Marvell Technology Soars: Marvell Technology's stock surged over 32% after Nvidia CEO Jensen Huang predicted the company would be the next to achieve a $1 trillion valuation, significantly boosting investor confidence in its future growth prospects.
- Hewlett Packard Enterprise's Strong Earnings: Hewlett Packard Enterprise's stock jumped more than 19% after reporting Q2 adjusted EPS of 79 cents, well above the consensus estimate of 54 cents, and raising its full-year adjusted EPS forecast to $3.35-$3.45, reflecting robust demand driven by AI.
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See More
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- Retail Earnings Reports: Macy's, Five Below, and Petco are set to release earnings on Wednesday, with the market anticipating insights into consumer spending and market trends that could influence investor confidence in the retail sector.
- Broadcom Earnings Expectations: Broadcom will announce its quarterly results after the market closes, with analysts expecting it to exceed forecasts, driven by rapid AI chip deployments and growing demand for networking equipment, which will further solidify its leadership in the semiconductor industry.
- CrowdStrike Earnings Outlook: Cybersecurity firm CrowdStrike is expected to showcase AI as a growth driver in its first-quarter earnings report, with analysts anticipating strong demand for its platform as companies seek to secure AI workloads while consolidating spending.
- ADP Employment Data Forecast: ADP forecasts an addition of 120,000 jobs in May, an increase from April, providing crucial context for the upcoming jobs report on Friday, helping the market better understand labor market dynamics.
See More
Surge in Options Trading Volume for Broadcom and Fulcrum
- Broadcom Options Volume: Broadcom Inc (AVGO) has seen an options trading volume of 343,511 contracts today, equating to approximately 34.4 million underlying shares, which represents a significant 167.6% of its average daily trading volume, indicating strong market interest in its future performance.
- High Strike Demand: The $420 strike call option for AVGO has particularly high demand, with 13,004 contracts traded today, representing about 1.3 million shares, reflecting bullish sentiment among investors regarding this price point.
- Fulcrum Options Activity: Fulcrum Therapeutics Inc (FULC) recorded an options trading volume of 9,890 contracts, translating to approximately 989,000 underlying shares, which is 162.2% of its average daily trading volume, showcasing market interest in its growth potential.
- FULC Strike Price Demand: The $4 strike call option for FULC has seen 4,585 contracts traded, representing around 458,500 shares, indicating a rising bullish sentiment among investors for this strike price.
See More
Broadcom Q2 Earnings Preview: Strong AI Demand
- Strong Earnings Expectations: Broadcom is projected to report Q2 earnings of $2.40 per share, reflecting a 51.9% year-over-year increase, with revenues expected to reach $22.12 billion, up 47.5%, indicating robust growth driven by AI-related demand.
- Record of Exceeding Expectations: The company has consistently surpassed consensus EPS estimates for eight consecutive quarters and has beaten revenue forecasts 88% of the time, showcasing its strong market performance and investor confidence.
- Positive Analyst Sentiment: In the last three months, Broadcom's earnings estimates have seen 35 upward revisions with no downward adjustments, reflecting a bullish outlook, particularly regarding its AI semiconductor business.
- Customer Agreements Boost Confidence: Recent long-term agreements with Anthropic, Google, and Meta are expected to enhance AI infrastructure expansion, further solidifying Broadcom's leadership in the AI market, especially with a target of over $100 billion in AI chip revenue by 2027.
See More
DriveNets Raises $410 Million to Expand AI Infrastructure
- Innovative Funding Scale: DriveNets secured $410 million in its latest funding round led by Bessemer Venture Partners and Atreides Management, bringing its total capital raised to $1 billion, indicating strong market confidence in its AI infrastructure solutions.
- New Investors Onboard: The funding round attracted new investors such as AMD and Red Dot Capital, while existing investors Pitango and D1 Capital Partners also participated, further strengthening the company's capital base and competitive position in the market.
- Surging Market Demand: CEO Ido Susan stated that the proceeds will be used to meet the increasing demand for large-scale AI infrastructure, reflecting the rapid growth in the AI sector and the urgent need for efficient network solutions.
- Significant Technological Advantage: DriveNets' technology enables telecommunications operators and data centers to build and manage networks using standard hardware, reducing reliance on costly proprietary systems, thereby enhancing network performance and supporting AI workloads, aligning with market expectations for high-performance networks.
See More
S&P 500 Index Hits Record High Amidst Strong Market Trends
- Market Uptrend: The S&P 500 rose 0.13% on Tuesday, marking its ninth consecutive day of gains, the longest streak since last May, and is up 20% from March lows, indicating a robust market recovery.
- Job Data Focus: ADP is set to release May payroll numbers on Wednesday, with economists expecting a gain of 110,000 jobs, slightly above April's 109,000, as investors watch for implications on the Fed's policy direction.
- Tech Stock Surge: HPE shares soared 19.5% on Tuesday, the largest jump since its 2015 spin-off, driven by strong AI-related demand, and are up 133% year-to-date, reflecting robust market demand and investor confidence.
- Cryptocurrency Decline: Bitcoin fell below $70,000, hitting its lowest level since April, alongside Ethereum dropping below $2,000, showcasing the volatility in the crypto market and cautious investor sentiment.
See More
US Stocks Close at All-Time Highs as AI Investments Surge
- Strong Market Performance: The S&P 500 rose by 0.13%, the Dow Jones by 0.45%, and the Nasdaq 100 by 0.48%, with all three indices reaching new all-time highs, reflecting strong investor confidence in tech stocks amid a surge in AI investments.
- Marvell Technology Soars: Marvell Technology's stock surged over 32% after Nvidia CEO Jensen Huang predicted the company would be the next to achieve a $1 trillion valuation, significantly boosting investor confidence in its future growth prospects.
- Hewlett Packard Enterprise's Strong Earnings: Hewlett Packard Enterprise's stock jumped more than 19% after reporting Q2 adjusted EPS of 79 cents, well above the consensus estimate of 54 cents, and raising its full-year adjusted EPS forecast to $3.35-$3.45, reflecting robust demand driven by AI.
- Labor Market Strength: US April JOLTS job openings unexpectedly rose by 731,000 to a 23-month high of 7.618 million, surpassing expectations of a decline to 6.866 million, indicating resilience in the labor market and further propelling stock market gains.
See More
Market Watch: Retail and Tech Earnings on June 3
- Retail Earnings Reports: Macy's, Five Below, and Petco are set to release earnings on Wednesday, with the market anticipating insights into consumer spending and market trends that could influence investor confidence in the retail sector.
- Broadcom Earnings Expectations: Broadcom will announce its quarterly results after the market closes, with analysts expecting it to exceed forecasts, driven by rapid AI chip deployments and growing demand for networking equipment, which will further solidify its leadership in the semiconductor industry.
- CrowdStrike Earnings Outlook: Cybersecurity firm CrowdStrike is expected to showcase AI as a growth driver in its first-quarter earnings report, with analysts anticipating strong demand for its platform as companies seek to secure AI workloads while consolidating spending.
- ADP Employment Data Forecast: ADP forecasts an addition of 120,000 jobs in May, an increase from April, providing crucial context for the upcoming jobs report on Friday, helping the market better understand labor market dynamics.
See More
Surge in Options Trading Volume for Broadcom and Fulcrum
- Broadcom Options Volume: Broadcom Inc (AVGO) has seen an options trading volume of 343,511 contracts today, equating to approximately 34.4 million underlying shares, which represents a significant 167.6% of its average daily trading volume, indicating strong market interest in its future performance.
- High Strike Demand: The $420 strike call option for AVGO has particularly high demand, with 13,004 contracts traded today, representing about 1.3 million shares, reflecting bullish sentiment among investors regarding this price point.
- Fulcrum Options Activity: Fulcrum Therapeutics Inc (FULC) recorded an options trading volume of 9,890 contracts, translating to approximately 989,000 underlying shares, which is 162.2% of its average daily trading volume, showcasing market interest in its growth potential.
- FULC Strike Price Demand: The $4 strike call option for FULC has seen 4,585 contracts traded, representing around 458,500 shares, indicating a rising bullish sentiment among investors for this strike price.
See More
