Broadcom's AI Ambition Meets Insider Selling at a Critical Juncture

Broadcom's AI chip revenue soars 65% to $20.2B, fueled by Google & Anthropic deals. Yet, as stock nears record highs, executives sell shares, revealing a market divide.

Broadcom Inc. has cemented its position at the heart of the artificial intelligence revolution, a status underscored by its recent leapfrogging of Tesla and Meta in market capitalization. This historic shift in the tech hierarchy is fueled by concrete, multi-year deals rather than mere speculation. However, as the chipmaker's stock hovers near record highs, a notable divergence is emerging: while institutional investors cheer ambitious revenue targets, company insiders are quietly cashing out.

The company's financials provide a solid foundation for the optimism. For the full fiscal year 2025, Broadcom reported record revenue of $63.9 billion. Its AI semiconductor division alone surged 65% to $20.2 billion. This momentum is accelerating; for the current second quarter of 2026, the company anticipates AI-specific chip sales to reach $10.7 billion, representing a staggering 140% year-over-year increase.

Driving this growth are two pivotal, long-term partnerships that secure Broadcom's role as a critical infrastructure provider. The strategic alliance with Google has been extended through 2031, covering the development of future Tensor Processing Unit (TPU) generations and networking components. Simultaneously, AI developer Anthropic has committed to using Broadcom designs, with plans to deploy 3.5 gigawatts of TPU-based AI computing power starting in 2027. These agreements underpin management's bold projection that AI-related revenue will surpass $100 billion by fiscal year 2027.

The financial engine behind this expansion is formidable. In the first quarter, Broadcom generated a free cash flow of $8 billion, representing a robust 41% of total revenue. This strength supports significant shareholder returns, including a quarterly dividend that was recently raised by ten percent to $0.65 per share for early 2026. A new share repurchase program authorizing $10 billion in buybacks through the end of 2026 is also underway.

Despite these strengths, the stock's dramatic run—up nearly 100% over the past year—has prompted mixed reactions. After a 12% gain over seven days pushed the share price to 320.75 euros, the Relative Strength Index (RSI) reading of 70.9 signals an overbought condition. Interestingly, filings with the SEC reveal that senior executives, including S. Ram Velaga and board member Justine Page, have recently sold millions of dollars worth of stock at these elevated levels.

Wall Street's view is similarly divided. While analysts at Seaport Global downgraded the stock to "Neutral" citing margin concerns and high valuation, other major banks remain bullish, largely due to the new Google and Anthropic deals. UBS maintains a "Buy" rating with a $475 price target, Mizuho recommends "Outperform" with a $480 target, and BofA Securities has a "Buy" rating and a $450 target. UBS analysts have also raised their industry-wide AI revenue estimate for 2027 to $145 billion.

Shareholders are set to gather in Palo Alto on April 20 for the annual meeting. The agenda includes the regular election of the board of directors and confirmation of the dividend policy. The vote comes at a pivotal moment, as Broadcom leverages its record quarterly revenue of $19.3 billion and custom chip expertise to position itself as an indispensable partner in the cloud giants' multi-billion-dollar infrastructure overhauls, even as some of its own leaders take profits off the table.