Broadcom (NASDAQ: AVGO) shares have surged by about 60% so far this year and are set to undergo a 10 for 1 stock split on July 15. This caught the attention of New Jersey Rep. Josh Gottheimer who recently disclosed a number of transactions made between June 6 and June 28. Gottheimer purchased between $1,000 and $15,000 worth of AVGO stock on June 28, just four days after Nancy Pelosi bought 20 Broadcom call options. These options had an $800 strike price and expiration date of June 20, 2025. Since these purchases, AVGO is up 9% since Pelosi’s transaction and 8% since Gottheimer’s purchase.
Josh Gottheimer, a member of the House Permanent Select Committee on Intelligence and the House Financial Services Committee, has an estimated net worth of $48.3 million and has made a total of 2,818 trades. Apart from Broadcom, Gottheimer’s other recent purchases include between $1,000 and $15,000 worth of Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), while sales include between $1,000 and $15,000 of Salesforce (NYSE: CRM) and Adobe (NASDAQ: ADBE).
Broadcom’s strong performance this year has been attributed to the demand for artificial intelligence (AI) technology. The company reported a 43% increase in revenue to $12.49 billion on May 5, with CEO Hock Tan stating that revenue from AI products reached a record $3.1 billion in a recent quarter. Despite the positive performance, Wall Street has maintained a largely unchanged average target price for Broadcom at $1,756.56.
The AI market is expected to continue growing significantly, with a total addressable market (TAM) of $135.93 billion in 2023 projected to reach $826.73 billion by 2030. This presents a significant opportunity for leading AI companies like Broadcom to capitalize on.
Disclosure: The author of the article, Eddie Pan, holds long positions in AAPL and MSFT. The views expressed in the article are those of the author and are subject to the InvestorPlace.com Privacy Policy. The editor responsible for the article does not have any direct or indirect positions in the securities mentioned. Eddie Pan specializes in institutional investing and insider trading, focusing on the latest news related to popular stocks for InvestorPlace’s Today’s Market team.
Article Source
https://investorplace.com/2024/07/rep-josh-gottheimer-is-buying-up-broadcom-avgo-stock-ahead-of-its-split/