Broadcom Inc. (NASDAQ:AVGO) shares rose on Thursday morning. The stock is outperforming the Nasdaq, which slipped 0.42%. This surge follows massive capital expenditure signals from tech hyperscalers.

• Broadcom stock is showing upward movement. Why are AVGO shares climbing?

Hyperscaler Spending Validates AI Demand

Investors are reacting to earnings from Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT). These giants signaled continued investment in artificial intelligence infrastructure.

Analysts at JPMorgan project that the top four U.S. hyperscalers will drive a $200 billion increase in data center capex by 2026.

Analysts Call AI Deceleration Narrative Dead

Daniel Newman, CEO of the Futurum Group, noted that the “AI capex is speculative” narrative is officially over. Newman stated on X, “The bull thesis just got validated. In a single afternoon.” He emphasized that real customers and real revenue are now driving this cycle.

New Wi-Fi 8 and 10G PON Chips Debut

Broadcom also announced its fourth wave of Wi-Fi 8 and 10G PON chips on Thursday. These products target the mass market to accelerate multi-gigabit broadband. Mark Gonikberg, a Broadcom senior vice president, said, “Broadcom is making ‘Ultra-High Reliability’ accessible in hyper-competitive broadband markets.”

Critical Levels To Watch for AVGO Stock

Broadcom is holding near the top of its 52-week range, sitting just under the $429.31 high. The stock is trading 6.7% above its 20-day simple moving average (SMA) and 17.5% above its 100-day SMA.

The moving average structure also stays constructive, with the 20-day SMA above the 50-day SMA and a golden cross in April (50-day SMA over the 200-day SMA).

Over the last 12 months, the stock is up 110.95%. The stock is still well above its 200-day SMA (19.8% above).

  • Key Resistance: $429.50
  • Key Support: $330.50

AVGO Stock Price Activity: Broadcom shares were up 2.05% at $413.85 on Thursday, according to Benzinga Pro data.

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