Broadcom Inc. (NASDAQ:AVGO) shares are trading slightly lower on Thursday. This follows a pivotal disclosure regarding the company’s hardware pipeline.
The Nasdaq is up 0.05% while the S&P 500 has shed 0.01%.
• Why are AVGO shares trading down?
Long-Term AI Partnership Extension
In an April 6 U.S. Securities and Exchange Commission (SEC) filing, Broadcom revealed an expanded partnership with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG). The deal supports Google's future AI infrastructure. Broadcom will design and supply custom tensor processing units (TPUs). The agreement now extends through 2031.
Custom Silicon Drives Growth
Broadcom will also provide networking components for Google's AI data racks. Google is now splitting TPUs into separate processors for training and inference. Broadcom plays a central role in this custom silicon push.
Management Highlights Efficiency
Google CEO Sundar Pichai emphasized scaling AI cost-effectively. Senior Vice President Amin Vahdat stated the shift matches evolving AI workloads.
Broadcom Stock: Key Levels and Trends to Watch
Broadcom is pressing into fresh 52-week highs after setting a prior peak in April.
The stock is trading 21.2% above its 20-day simple moving average (SMA) and 24.4% above its 100-day SMA, which leans toward a firmly bullish short- and intermediate-term trend.
The relative strength index (RSI), a momentum gauge, is 79.12, which signals overbought conditions and a higher chance of short-term pullbacks or sideways digestion.
The 50-day SMA crossed above the 200-day SMA in April (a golden cross), reinforcing that the longer-term trend has flipped back in favor of bulls after the death cross in March. Over the last 12 months, the stock has been up 138.23%.
AVGO Stock Price Activity: Broadcom shares were down 0.27% at $421.51 at the time of publication on Thursday, according to Benzinga Pro data.
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