Broadcom’s AI Engine Drives Record Valuation Amid Insider Share Sales

Shares in semiconductor giant Broadcom have surged to a new peak, trading at €321.00 and delivering a staggering 104% gain over the past year. This relentless rally, which includes a 13.69% jump over the last month, has propelled the company’s market capitalization to approximately $1.8 trillion. The driving force is clear: Broadcom is cementing its position as a foundational architect of global artificial intelligence infrastructure.

The company’s strategic offensive is built on long-term, high-visibility contracts. A recently expanded partnership with Google will see Broadcom managing a massive 3.5 gigawatts of computing capacity for AI firm Anthropic starting in 2027. Under this deal, Broadcom handles the physical design and integration of the custom chips, which will be built using cutting-edge 2- and 3-nanometer manufacturing processes. This agreement, alongside a robust backlog for AI networking solutions, provides exceptional revenue visibility deep into the decade, reinforcing its leadership in application-specific integrated circuits (ASICs).

Financial forecasts for fiscal 2026 underscore this momentum. Analysts now project annual revenue will surpass $102 billion, with consensus earnings per share estimated at $11.41—a jump of more than 67% year-over-year.

Yet, as the stock price climbs, a notable wave of insider selling has emerged. Over the past 90 days, net sales by company insiders have totaled roughly $88 million. Transactions have included Director Gayla J. Delly selling 1,000 shares on the open market, while S. Ram Velaga liquidated over $10 million worth of stock across two days in early April, reducing his position by more than 13%. While such profit-taking is common after a major rally, the concentrated timing is drawing attention.

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

Wall Street’s outlook remains overwhelmingly positive, largely dismissing the insider activity. Major institutions have been raising their price targets, citing Broadcom’s booming AI semiconductor and VMware infrastructure businesses. Truist Financial lifted its target to $545 from $510, JPMorgan Chase increased its to $500 from $475, and Citigroup raised its to $475 from $458. All three maintain Buy or Overweight ratings. A note of caution came from Seaport Global, which downgraded the stock to Neutral, citing potential bottlenecks in the AI sector.

The shareholder meeting scheduled for April 20th in Palo Alto adds another layer to the narrative. Investors will vote on the election of eight directors and on executive compensation plans—a topic that carries added significance following the recent insider transactions.

Despite the selling pressure from some executives and a single fund, Yousif Capital Management, which trimmed its stake by 5.4%, the market’s appetite for Broadcom shares appears undiminished. Recent U.S. market data flagged a “Power Inflow” alarm, indicating substantial institutional and private buying orders. With an RSI reading of 70.9, the stock is in technically overbought territory, yet the fundamental story anchored in multi-year AI deals continues to command a premium valuation.