5 Stocks to Sell Now According to Ray Dalio

2. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 66

Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor and computer software company. On August, 12 BofA removed the company from its US 1 list, yet maintained a Buy rating on the company shares.

In May 2022, Broadcom Inc. (NASDAQ:AVGO) announced its acquisition of VMware, Inc. (NYSE:VMW) for $61 billion in cash and stock. The acquisition is expected to provide Broadcom Inc. (NASDAQ:AVGO) with an additional $13 billion in annual revenue, $1.6 billion in annual net income, and $4 billion in annual operating cash flow. The deal is expected to close in 2023 as it still needs regulatory approval. 

Bridgewater associates owned 19,229 shares of Broadcom Inc. (NASDAQ:AVGO), valued at $12.1 million at the end of Q1 2022, representing 0.04% of the fund’s portfolio. In Q2 2022, the firm dumped the stock entirely.

On July 20, Deutsche Bank analyst Ross Seymore reaffirmed a Buy rating for Broadcom Inc. (NASDAQ:AVGO) shares with a price target of $635, down from $700. The analyst expects a positive fundamental strength across the majority of the sector. However, he believes that investors are waiting for a “widespread deck-clearing” before looking back at semiconductor stocks.

Here is what ClearBridge Investments had to say about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter:

“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021, Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”