Broadcom weekly report: Mixed momentum and steady accumulation

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Broadcom slips 0.04% this week

Highlights

Broadcom reported FY25 revenue of $64 billion with AI semiconductor revenue up 74% year over year, and an AI order backlog at $73 billion extending into 2026.
Shareholder returns were robust with $11.1 billion in dividends and $6.4 billion in buybacks announced for FY25, plus a Q4 dividend increase.
The company completed the VMware integration, launched new Wi-Fi 8 products and BCM4918 at CES 2026, and issued $4.5 billion in senior notes to refinance debt.

Expanded AI revenues and record backlog boost positive sentiment this week

Broadcom reported strong financial results, highlighted by FY25 revenue reaching $64 billion and AI semiconductor revenue surging 74% year over year. The company maintained a robust $73 billion AI order backlog with committed contracts extending into 2026 and demonstrated significant cash returns to shareholders through $11.1 billion in dividends and $6.4 billion in buybacks for FY25, alongside a dividend increase in Q4. Broadcom completed the integration of VMware, launched new Wi-Fi 8 products and BCM4918 at CES 2026, issued $4.5 billion in senior notes to refinance debt, and saw increased institutional interest from firms like ARK Invest and Stonehage Fleming. Shareholder returns and major product expansion underpin a positive outlook.

Long-term momentum intact as weekly signals diverge near resistance

On the weekly chart, AVGO trades firmly above both the MA-50 and MA-200, confirming long-term strength, but remains capped by resistance near the MA-20 at $351.73. Key dynamic support rests near the Ichimoku Kijun at $343.81, with secondary support near $335 and major resistance at $350 and $355. Weekly momentum is mixed — MACD and ADX indicate persistent underlying bullish momentum, but oscillators are less conclusive: RSI holds a mild bullish bias while Stoch RSI flags oversold conditions and CCI turns neutral. Volatility is moderate and momentum signals diverge, reflecting steady accumulation but some short-term exhaustion.

Rangebound outlook persists while bullish signals favor upward break next week

Over the next week, AVGO is expected to consolidate between support at $343 and resistance at $350, with an estimated trading range of $330 to $355. Weekly momentum signals, particularly the MACD and ADX, suggest a high likelihood of upward movement, making a price increase (probability above 80%) the most probable scenario. A clear break above $350 could open the way to $355, while a sustained move below $343 may push the price down to $335. Overall, sideways action under mild pressure is probable, barring a catalyst from broader news or a decisive technical breakout.

Anton Kharitonov, analyst at Traders Union, notes that Broadcom (AVGO) showed resilience this week, remaining above its medium- and long-term averages despite mild short-term selling. He highlights strong financials, record AI revenue growth, long-duration contracts, and robust shareholder returns as supportive factors for the underlying uptrend. Technical momentum is still positive on weekly MACD and ADX, but mixed signals from oscillators and price stalling below the MA-20 suggest a cautious outlook. Kharitonov believes that while consolidation between $343 and $350 is likely next week, a decisive break of these levels will determine the next directional move. He remains defensive and sees the base case as sideways action unless a clear catalyst emerges. "Until AVGO closes firmly above $350, I remain cautious on any sustained upside this week."

Last time we reported that Broadcom was trading below its short- and medium-term moving averages, with momentum indicators showing a mixed technical setup. Previously it was noted that momentum indicators are mixed—MACD signals a buy, suggesting a potential near-term rebound despite prevailing selling pressure.

Source of Data: AVGO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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