Rep. Josh Gottheimer Is Buying Up Broadcom (AVGO) Stock Ahead of Its Split

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  • Rep. Josh Gottheimer just disclosed a Broadcom (AVGO) purchase.
  • Shares of the company are set to receive a 10-for-1 stock split on July 15.
  • AVGO stock is up by about 60% this year.
Broadcom Stock - Rep. Josh Gottheimer Is Buying Up Broadcom (AVGO) Stock Ahead of Its Split

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Broadcom (NASDAQ:AVGO) stock is up by about 60% year-to-date and is set to enact a 10-for-1 stock split on July 15. That caught the attention of New Jersey Representative Josh Gottheimer.

Gottheimer just disclosed a significant number of trades made between June 6 and 28. On June 28, he purchased between $1,000 and $15,000 of AVGO stock. That came just four days after Nancy Pelosi purchased 20 Broadcom call options with a strike price of $800 and an expiration date of June 20, 2025. AVGO is up 9% since her purchase and 8% since Gottheimer’s purchase.

Gottheimer is a member of two committees, the House Permanent Select Committee on Intelligence and the House Financial Services Committee. According to Quiver Quant, Gottheimer has an estimated net worth of $48.3 million and has placed a total of 2,818 trades.

Besides Broadcom, Gottheimer’s other purchases include between $1,000 and $15,000 each of Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). His sales include between $1,000 and $15,000 of both Salesforce (NYSE:CRM) and Adobe (NASDAQ:ADBE).

Rep. Josh Gottheimer Discloses Broadcom Stock Purchase Before Split

AVGO has enjoyed generous returns this year on the heels of the artificial intelligence (AI) revolution. For the quarter ended May 5, its revenue increased by 43% to $12.49 billion. Strong demand for AI has allowed the semiconductor company to raise its fiscal year 2024 revenue guidance to $51 billion.

“Broadcom’s second quarter results were once again driven by AI demand and VMware. Revenue from our AI products was a record $3.1 billion during the quarter,” said CEO Hock Tan.

However, Wall Street remains muted on Broadcom, with an average price target of $1,756.56. That implies an upside of about 1% from the current price. The highest price target is $1,985.05, while the lowest is $1,384.92.

At the same time, the prospects for AI remain elevated. According to Statista, the AI total addressable market (TAM) was worth $135.93 billion in 2023 and is expected to grow to $184.04 billion this year. By 2030, the TAM is expected to reach a staggering $826.73 billion. That leaves a lot of dollars on the table for leading AI companies to take advantage of.

On the date of publication, Eddie Pan held LONG positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the  InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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