Broadcom Inc. (NASDAQ:AVGO) stock traded modestly higher in Friday’s premarket session as investors returned to technology stocks amid a broader risk-on market tone. Nasdaq futures climbed nearly 1%, while S&P 500 futures gained 0.56%.
The stock has pulled back from its June and 52-week highs. However, Broadcom remains up 50.57% over the past year. Investors are now assessing whether the recent weakness is a healthy pause within a longer-term uptrend or the start of a deeper correction.
Technical Picture Remains Mixed
Broadcom continues to trade below key short-term moving averages. The stock sits 8.1% below its 20-day simple moving average of $421.61 and 4.4% below its 50-day SMA of $405.08. Those levels suggest near-term pressure remains in place.
However, the broader trend is still positive. Broadcom trades 6% above its 100-day SMA of $365.29 and 8.3% above its 200-day SMA of $357.68.
Momentum indicators have weakened. The MACD remains below its signal line, and the histogram is negative, signaling fading upside momentum. Even so, the bullish “golden cross” formed in April remains intact, with the 50-day SMA holding above the 200-day SMA.
Key resistance stands near $429.50, while major support sits around $324.50.
Earnings Outlook and Analyst Forecasts
The next major catalyst is Broadcom’s estimated Sept. 3, 2026, earnings report.
Wall Street expects earnings per share of $3.14, up from $1.69 a year earlier. Revenue is projected to reach $29.43 billion, compared with $15.95 billion in the prior-year period.
The stock trades at roughly 64.2 times earnings, reflecting a premium valuation.
Analysts maintain a Buy consensus rating with an average price forecast of $513.68. On June 4, UBS reiterated Buy while lowering its forecast to $485. Bank of America Securities and Mizuho both raised their forecasts to $530 while maintaining bullish ratings.
Recent commentary from Citigroup also remains supportive. Citigroup analyst Atif Malik said the recent pullback in semiconductor stocks appears healthy following the sector’s strong rally.
Malik kept Broadcom among Citi’s top buy-rated U.S. semiconductor picks, citing continued strength in data-center spending.
He said Broadcom remains well-positioned to benefit from AI infrastructure investment and growing demand for server CPUs designed for agentic AI applications.
ETF Exposure Remains Significant
Broadcom carries substantial weightings in several technology-focused funds. Because of those large allocations, fund inflows and outflows can create additional buying or selling pressure in Broadcom shares.
- iShares Expanded Tech Sector ETF (NYSE:IGM): 9.12% Weight
- First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV): 9.51% Weight
- Amplify Cybersecurity ETF (NYSE:HACK): 8.46% Weight
Price Action
AVGO Stock Price Activity: Broadcom shares were up 0.40% at $387.12 during premarket trading on Friday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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