Broadcom stock price forecast: Key support eyed as AVGO drops 3.46% despite bullish AI outlook

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Broadcom slides 3.46% to $324.34 today

Highlights

Broadcom posted Q1 2026 revenue of $19.3 billion with net income and EPS sharply higher on booming AI chip sales.
The company completed a $7.85 billion buyback, launched a new $10 billion authorization, and projects Q2 revenue of $22 billion amid a $73 billion AI order backlog.
Shares face near-term selling pressure, trading below key moving averages, with consolidation likely between $320 and $335 as buyers and sellers reset.

AI-driven revenue surge fuels buybacks amid market selling pressure

Broadcom reported Q1 2026 revenue of approximately $19.3 billion and a significant rise in net income and EPS. The company executed a $7.85 billion share repurchase during the quarter and authorized a new $10 billion buyback program through the end of 2026. AI chip revenue increased 106% to $8.4 billion following the launch of a new 3nm data center processor, and the Tomahawk 6 family switch series is now shipping in production volume. Over $8 billion in free cash flow was generated, and a quarterly dividend of $0.65 per share was paid, with a Q2 2026 revenue forecast of $22 billion and an AI backlog of $73 billion, though price action has remained under broader selling pressure.

Neutral technicals cap upside as intraday volatility accelerates losses

Technical indicators for AVGO are mixed: the Ichimoku Kijun level aligns near the current price, serving as immediate resistance. Daily MACD remains neutral and ADX shows weak trend intensity, while RSI (52.57) and CCI (58.75) are both neutral to slightly bullish, and the Stoch RSI is neutral but heavily oversold on intraday timeframes. Although the D1 Bull/Bear Power (BBP) is overbought, intraday readings remain deeply oversold, reflecting persistent seller dominance. The Awesome Oscillator supports a buy signal, but elevated intraday volatility and a close near today's session lows ($325.45–$338.31) highlight consistent downward pressure amid a lack of a defined daily trend.

Rebound odds rise as consolidation signals outweigh downside risk

For the next five trading days, AVGO is expected to fluctuate within a $315.00–$335.00 volatility band relative to current levels. Weekly signals from RSI, ADX, MACD, and the MA-50 suggest a high probability of rebound or stabilization, with more than 80% likelihood for price consolidation between $320 and $335 as buyers and sellers reset. If the price breaks above $335, a move toward the top of the weekly range may follow, whereas a failure of support near $322–$320 could result in a retreat toward $315. However, long-term indicators suggest any sustained downside is limited.

Anton Kharitonov, expert at Traders Union, sees Broadcom trading under persistent technical resistance despite strong revenue and buyback measures. He notes that long-term support around the SMA-200 is holding, but sellers continue to dominate the short-term action. The analyst is cautious as mixed signals and high intraday volatility point to ongoing uncertainty within a $315.00–$335.00 range. "Base case remains consolidation unless $335 is broken — downside risk persists while resistance caps the upside."

Previously it was reported that Broadcom and several leading technology firms launched an open industry standard aimed at accelerating AI infrastructure through new optical interconnect technology. With Broadcom’s latest surge in AI chip revenues and robust buyback announcements reflecting both operational momentum and sectoral tailwinds, traders should monitor for a decisive shift above the $335 technical barrier as a potential signal of renewed strength.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.