Broadcom (AVGO) Stock: Wall Street Still Bullish Despite EU Probe and Insider Selling
TLDR
- EU regulators are questioning European cloud companies about their reliance on VMware and ability to switch providers
- A March 31 deadline looms after which some providers could lose the ability to sell VMware subscriptions
- EU antitrust violations can carry fines up to 10% of a company’s annual global revenue
- Piper Sandler upgraded AVGO to “strong buy” with a $460 price target; consensus sits at ~$506
- Broadcom reported Q3 EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year
Broadcom (AVGO) is trading around $363, up slightly in premarket Friday, but the stock is still well below its 52-week high of $495. The early gain looks tied to broader market strength rather than anything company-specific.
The bigger story right now is regulatory pressure from Europe. EU officials have been asking European cloud companies how much they rely on VMware and whether switching to alternatives is realistic. Regulators are also looking at Broadcom’s certification rules and whether they restrict cloud providers unfairly.
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