Broadcom Inc. (NASDAQ:AVGO) shares are edging lower on Tuesday, moving against broader market trends as risk appetite stays firm across major indices and Technology stocks trade higher.

The Nasdaq is up 0.88% while the S&P 500 has gained 0.67%.

Recent Key Deals

Last week, the company on Wednesday introduced the Arcot Smart Ruleset, a machine learning-powered 3-D Secure (3DS) engine designed to detect and prevent e-commerce payment fraud, including unauthorized card transactions and account takeover attempts.

Last month, Broadcom secured the high-bandwidth memory (HBM) and advanced-node manufacturing capacity at Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) needed to support its AI chip production through 2028, easing concerns about potential supply shortages.

AVGO Technical Levels: Key Support and Resistance to Watch

Broadcom is holding near the upper end of its 52-week range after a powerful 12-month run, which keeps the longer-term trend pointed higher even as the stock cools off. It's trading 16.9% above its 20-day simple moving average (SMA) and 11.3% above its 100-day SMA, a setup that indicates buyers have controlled both the short-term and intermediate trend.

The relative strength index (RSI), a momentum gauge, is 73.13, which is in overbought territory and often lines up with choppier trading or pauses. RSI at 73.13 shows momentum is still strong, but it also signals the stock is getting "crowded" on the buy side.

  • Key Resistance: $414.50 — an area where rallies have recently stalled near the 52-week high zone.
  • Key Support: $308.50 — a level where buyers previously showed up, acting as a downside reference.

Recent Earnings Snapshot

Last month, Broadcom reported first-quarter revenue of $19.31 billion, beating analyst estimates of approximately $19.20 billion. The company posted adjusted earnings of $2.05 per share for the quarter, beating analyst estimates of $2.02 per share, according to Benzinga Pro.

The company expects fiscal second-quarter revenue of approximately $22 billion versus estimates of $20.68 billion. The semiconductor company anticipates second-quarter adjusted EBITDA at 68% of projected revenue.

CEO Hock Tan said the company expects AI chip revenue to exceed $100 billion in 2027, citing strong demand for custom silicon used by major technology companies.

Tan said the company now has clear visibility into that target and has already secured the supply chain needed to support the growth.

He added that demand from large customers such as Alphabet Inc.'s (NASDAQ:GOOGL) Google, OpenAI, Anthropic, and Meta Platforms Inc. (NASDAQ:META) is driving the expansion of Broadcom's AI chip business.

Tan also said the company's AI chip model should deliver margins consistent with the rest of its semiconductor business, highlighting improved yields and cost efficiencies as demand for custom AI accelerators and networking chips continues to rise.

Analyst Consensus & Recent Actions

The stock carries a Buy Rating with a consensus price target of $438.43. Recent analyst moves include:

 JPMorgan analyst Harlan Sur reiterated an Overweight rating and raised his price forecast to $500 from $475, citing strong momentum in Broadcom's AI business and growing demand for AI networking.

Goldman Sachs analyst James Schneider maintained a Buy rating and lifted his price forecast to $480 from $450, pointing to improved visibility into long-term AI demand.

Rosenblatt analyst Kevin Cassidy also maintained a Buy rating and raised his price forecast to $500, highlighting stronger visibility into demand into 2027 and Broadcom's leadership in AI ASICs and networking.

Meanwhile, Benchmark analyst Cody Acree reiterated a Buy rating with a $485 price forecast, citing Broadcom's guidance, expanding hyperscaler customer base and secured supply chain as factors supporting its AI growth outlook.

Top ETF Exposure

  • VanEck Semiconductor ETF (NASDAQ:SMH): 8.43% Weight
  • iShares Semiconductor ETF (NASDAQ:SOXX): 8.27% Weight
  • Invesco S&P 500 Momentum ETF (NYSE:SPMO): 9.01% Weight

Significance: Because Broadcom carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

AVGO Stock Price Activity: Broadcom shares were up 0.22% at $380.58 at the time of publication on Tuesday, according to Benzinga Pro data.

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