NorthCrest Dumps 30,024 Broadcom Shares in Q2 Filing

Key Points

• The Registered Investment Advisor reduced its exposure to Broadcom by $6.5 million.

• The trade represented 0.17% of 13F reportable assets under management.

• Post-sale, the fund holds 590,973 shares valued at $162.62 million, as of June 30, 2025.

• Broadcom remains NorthCrest’s second-largest equity holding after the transaction.

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On July 10, 2025, NorthCrest Asset Management, LLC disclosed the sale of Broadcom(NASDAQ:AVGO) shares worth approximately $6.50 million, according to its latest SEC filing.

What happened

NorthCrest Asset Management, LLC filed its quarterly Form 13-F with the U.S. Securities and Exchange Commission on July 10, 2025, reporting the sale of 30,024 Broadcom shares during Q2 2025. The transaction had a reported value of $6.50 million for the period ended June 30, 2025. As of June 30, 2025, NorthCrest’s total position in Broadcom was 590,973 shares, worth $162.62 million. The full SEC filing is available here.

What else to know

After this sale, Broadcom accounts for 4.37% of NorthCrest’s $3.72 billion in reportable U.S. equity assets as of Q2 2025.

NorthCrest's top holdings after the filing, as of June 30, 2025 are as follows:

Nvidia (NVDA): $213.13 million (5.7% of AUM)

Broadcom (AVGO): $162.62 million (4.4% of AUM)

Microsoft (MSFT): $139.53 million (3.7% of AUM)

Apple (AAPL): $105.55 million (2.8% of AUM)

Amazon (AMZN): $70.46 million (1.9% of AUM)

Broadcom shares closed at $275.40 on July 10, 2025, up 58.89% over the past year, outperforming the S&P 500 by 46.27 percentage points.

Its dividend yield stands at 0.84%, while forward P/E ratio is 56.95.

Company overview

Company snapshot

Broadcom offers semiconductor devices, infrastructure software, and system-on-chip solutions for networking, broadband, wireless, storage, and industrial applications.

It designs, develops, and supplies semiconductor devices and software for enterprise, data center, telecom, and industrial uses.

The company serves a global customer base including enterprises, data centers, telecom operators, and industrial clients.

Broadcom Inc. is a leading global technology company with a diversified portfolio spanning semiconductors and infrastructure software. It supplies mission-critical solutions across data center, networking, broadband, and wireless markets.

Foolish take

NorthCrest may have reduced its Broadcom stake, however that doesn’t mean the latter’s business is faltering. Broadcom’s semiconductor devices and infrastructure offerings are quiet enablers of Artificial Intelligence (AI) across industries, with a massive addressable market ahead.

Over the last five years, while revenue grew a solid 145%, operating income grew a massive 471%, indicating excellent operating leverage. In lay terms, this means for every dollar of revenue growth, operating income grew at least three times, indicating high scalability without incurring high fixed costs.

Investors are usually aware of the company’s semiconductor hardware offerings, especially its AI semiconductor segment, which has witnessed 10 straight quarters of growth. However, over the last 18 months or so, Broadcom’s growth engine has been its infrastructure software segment, thanks to its $69 billion acquisition of cloud computing and virtualization technology leader, VMware, in November 2023.

Since that acquisition, the company has beefed up its enterprise software solutions and enhanced its VMware Cloud Platform (VCF), the enterprise-grade, AI-ready private cloud platform for organizations looking for secure on-prem cloud solutions. The result: a substantial increase in its annual recurring revenue as clients continued to convert to the new VCF subscription model.

During Broadcom’s second quarter earnings call, the President and CEO, Hock Tan, mentioned this business model helps increase the business's operating leverage further, rewarding shareholders.

The stock’s price-to-earnings ratio of 100 doesn’t look cheap, however, the solid fundamentals of its underlying business indicate there’s much growth ahead for this trillion-dollar company.

Glossary

13F reportable assets:Assets that institutional investment managers must disclose quarterly to the SEC, showing their U.S. equity holdings.
Assets under management (AUM):The total market value of investments managed on behalf of clients by a fund or firm.
Exposure:The amount of capital or percentage of a portfolio allocated to a particular investment or asset class.
Form 13-F:A quarterly report filed by institutional investment managers listing their equity holdings with the SEC.
Dividend yield:Annual dividends paid by a company divided by its share price, expressed as a percentage.
Forward P/E ratio:The price-to-earnings ratio using forecasted future earnings, indicating how much investors pay for expected profits.
System-on-chip:An integrated circuit that combines multiple electronic components and functions onto a single chip.
Infrastructure software:Software that supports the basic operations and management of IT systems, networks, and data centers.
Reportable U.S. equity assets:U.S. stock holdings that investment managers must disclose in regulatory filings.
Mission-critical solutions:Products or services essential for the core operations of an organization or system.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Isac Simon has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.