Broadcom stock price forecast: $381.67 support in focus as AVGO falls 10.73%

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Sholanke Dele

3 hours ago

Broadcom stock price forecast: $381.67 support in focus as AVGO falls 10.73% — Broadcom drops 10.73% after earnings

Broadcom Inc. (AVGO) stock is trading at $406.60, down 10.73% on the day. The price sits below its short- and medium-term key moving averages but remains above its longer-term average.

AVGO price prediction

24H -6.1%

$392.23

48H -19.55%

$336.03

7D -18.28%

$341.35

1M 5.22%

$439.51

3M 22.35%

$511.05

6M 53.73%

$642.13

12M 78.06%

$743.78

Detailed

Current price: $ 417.71 -37.7550 8.29%

Real-time Data 14:57

Daily range 403.06

426.35

Weekly range 434.21

489.95

Highlights

Broadcom reported Q2 FY26 revenue surged 48% year-over-year to $22.19 billion, with net income reaching $9.31 billion.
AI segment revenue hit $10.8 billion, underscoring Broadcom’s rapid expansion in advanced technology markets despite lowered share buybacks.
AVGO is trading under key short-term technical levels amid strong seller pressure, with price likely consolidating between $381.67 and $456.75 and risks skewed to downside.

Surging AI revenue drives growth as buybacks decline

Broadcom reported its second-quarter fiscal year 2026 results, posting revenue of $22.19 billion, a 48% year-over-year increase, and GAAP net income of $9.31 billion. This period also saw the announcement of a quarterly dividend and disclosed AI segment revenue of $10.8 billion, highlighting the company's ongoing growth in advanced technology markets. Despite ending the quarter with $19.6 billion in cash and maintaining capital distributions through dividends, the company reported a significant decrease in buybacks compared to previous quarters.

Intense selling momentum persists amid mixed technical signals

On the daily chart, AVGO is below both the MA-20 ($471.51) and MA-50 ($445.98), while still above the MA-200 ($354.62). The Ichimoku Kijun level at $449.03 marks immediate resistance. Near-term technical range is established with $381.67 as support and $456.75 as upper resistance. MACD continues to signal Strong Buy, while ADX points to a Sell. RSI stands at 24.47, and oscillators like Stoch RSI, CCI, and BBP show persistent oversold or seller-dominated conditions, whereas the Awesome Oscillator is neutral. This marks ongoing sharp downside momentum and indicator divergence.

Consolidation range persists as rebound odds remain subdued

In the short term, AVGO is expected to consolidate between $381.67 and $456.75 as the typical volatility band relative to current levels. The probability of a rebound is just 29%, with the base case remaining a sideways or slightly downward bias within this corridor. A breakout above $449.03 would be the trigger for a bullish scenario, while a sustained move below $381.67 would likely confirm renewed selling momentum.

Anton Kharitonov, expert at Traders Union, sees Broadcom’s recent results as fundamentally strong but not enough to offset current technical weakness. He notes downward momentum dominates, with the price far below key moving averages and most oscillators flashing oversold. The analyst believes that, despite robust Q2 numbers and a healthy cash position, a lack of buyback support and poor near-term sentiment keep risk to the downside. "Base case remains sideways to slightly lower as long as price is stuck below $449.03 — I stay cautious until clear bullish confirmation appears."

Earlier, analysts noted that Broadcom shares declined sharply following earnings as investors questioned whether the company's AI-driven growth could continue to surpass high expectations. The current technical setup suggests traders should monitor the $449.03 level for signs of bullish reversal, as a sustained break above this resistance may alter the currently cautious outlook.

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.