AVGO Stock Is Down 27% From Its High — Here’s What $250 Million in Insider Selling Actually Means

A $250 million insider sale attracts a particular kind of attention, more akin to a protracted pause followed by a lot of inquiries than panic. Co-founder and board director of Broadcom Henry Samueli raised slightly more than $250 million in a single transaction on March 25 by selling 781,967 shares at an average price of $319.71. Two days later, the filing was submitted to the SEC. The stock had already moved by the time it was made public. Samueli would have made about $15 million less from the same shares if he had waited two more sessions, as AVGO closed at $300.68 on March 27. The question that has been circulating in every thread about Broadcom stock since the filing dropped is whether that timing reflects something specific about his read on near-term price action or whether it’s the kind of coincidence that looks meaningful in hindsight.

The sale is noteworthy for its pattern as well as its size. Samueli also carried out the next three biggest insider sales in AVGO’s history: $128 million in December 2025, $124 million in September 2025, and $125 million in June 2025. For a number of quarters, the man has been selling regularly and in large quantities. A total of 403,049 shares worth $133.5 million were sold by Broadcom insiders in just the last ninety days. Among them were CFO Kirsten Spears and executive S. Ram Velaga, who both sold shares in mid-March for about $321. Even though the underlying company continues to report impressive numbers, shorter-term investors have reason to be cautious due to the concentration and recent acceleration of the selling. All of this is disclosed in standard SEC filings.

Those figures are truly astounding. On March 4, Broadcom released its Q1 2026 results, which showed $19.31 billion in revenue, up 29.47 percent year over year and exceeding the $19.10 billion consensus estimate. EPS was slightly higher than the anticipated $2.03 at $2.05. In particular, AI revenue increased by more than 100% to $8.4 billion, surpassing the company’s own projections, with management aiming for more than $10 billion in AI revenue this quarter.

In order to strengthen its position alongside Google and Meta as a preferred partner for hyperscalers creating custom silicon rather than solely depending on NVIDIA’s general-purpose hardware, the company has reached a multiyear agreement with OpenAI to co-develop custom AI accelerators. It’s important to comprehend the reasoning behind this: Broadcom’s XPUs occupy a distinct and mostly non-competing lane from NVIDIA’s GPUs because they are task-specific rather than general purpose. It’s a clever distinction. Businesses tend to establish long-lasting positions when they can sit next to the most significant infrastructure player in a market without directly competing with it.

None of that is evident in the stock’s performance thus far in 2026. AVGO is down about 27% from its 52-week high of $414.61 and down about 13.5% year to date. Regardless of what the fundamentals say, short-term momentum traders should remain cautious because the 50-day moving average has dropped to $327 and the 200-day to $344, both of which are significantly above where the stock is currently trading. Additionally, on March 23, Broadcom introduced its Symantec CBX platform, which combines Symantec and Carbon Black technologies into an integrated cybersecurity solution targeted at mid-sized businesses that are increasingly vulnerable to threats but lack the funds for enterprise-scale security operations centers. Although cybersecurity product launches typically take time to generate significant revenue, the addressable market is real and underpenetrated, and the announcement’s short-term stock catalyst was modest.

It seems as though Broadcom is in a somewhat awkward position in relation to its own story as we watch all of this unfold. 100% AI revenue growth in a single quarter is not a small number, and the OpenAI deal indicates that the most closely watched AI company in the world has determined that Broadcom’s custom silicon is worth a long-term commitment. The AI infrastructure story is still intact and possibly getting stronger. The majority of analysts have stuck to their convictions: Morgan Stanley is at $470, KeyCorp is at $500, JPMorgan Chase is at $500, and Truist is at $545. The consensus is at $435.30, which suggests an increase of about 45% from present levels. One Hold rating, 29 Buys, 1 Strong Buy—about as consistent a bullish analyst consensus as big-cap tech produces. The co-founder recently took $250 million off the table, the stock is at $300, and the market as a whole has been losing for the past five weeks due to geopolitical concerns and oil prices, which are unrelated to Broadcom’s chip business.

Whether the insider selling is a sign of company-specific issues or just an elderly billionaire diversifying a concentrated position amassed over decades is still up for debate. Samueli is seventy years old. In 1991, he was a co-founder of the business. Even after these sales, he still has a sizable stake. What happens when the macroenvironment stabilizes and investors start assessing AI infrastructure names based on their earnings trajectory instead of their short-term chart patterns might be a more pertinent question. That revaluation could be substantial at $300 given the forward story, which includes an upcoming $10 billion AI revenue quarter. Alternatively, the market remains volatile, insider selling persists, and the discount grows before it contracts. Both possibilities are still genuinely feasible.