Broadcom stock price forecast: $356.28 support as AVGO drops 5.35% to $375.32

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Broadcom drops 5.35% to $375.32 today

Highlights

Broadcom's Q2 revenue surged to $22.19 billion, driven by 143% year-over-year growth in AI semiconductor sales reaching $10.8 billion.
The company advanced its AI and software initiatives with the AI XPV Platform launch and $35 billion in infrastructure expansion deals.
Broadcom trades below key moving averages with bearish momentum and a projected range of $325.68 to $424.96, making further downside likely.

Robust sales and AI gains as technical weakness persists

Broadcom Inc. reported its second-quarter 2026 results with revenue reaching $22.19 billion and diluted EPS of $1.91, reflecting strong demand in both semiconductor and software segments. Notably, AI semiconductor sales saw a 143% year-over-year increase to $10.8 billion, indicating substantial growth within a key market for the company. The company also launched the AI XPV Platform, backed by Apollo and Blackstone through a $35 billion transaction to expand Anthropic’s compute infrastructure, and implemented significant security updates while increasing investment in the Java and Spring ecosystem. These developments reflect a robust corporate backdrop, though price action has remained under broader selling pressure.

Intraday sell signals intensify as AVGO tests short-term resistance

On the H1 chart, AVGO is trading below the MA-20 at $394.01 and the MA-50 at $432.55, while on the daily chart it remains above the MA-200 at $356.28. The Ichimoku Kijun sits at $429.38, marking immediate resistance. MACD shows a strong sell signal, and ADX is neutral, indicating indecision in trend strength. RSI at 31.23 signals a sell and nears the oversold threshold, while both CCI and BBP are in oversold territory, confirming seller dominance in the intraday session. Stoch RSI and Awesome Oscillator both exhibit neutral readings, aligning with mixed momentum signals across oscillators.

Downside risk elevated as volatility narrows consolidation range

Over the next few trading days, typical volatility suggests a price range between $325.68 and $424.96. There is a low likelihood of a rebound, with just a 24% probability of an upward move, while the chance of further decline stands at 76%. The baseline scenario is for AVGO to consolidate within established support and resistance zones; a bullish scenario would require a break above the $429.38 Ichimoku Kijun resistance, while a bearish scenario could see the price breach support and extend the current downtrend.

Viktoras Karapetjanc, expert at Traders Union, sees robust underlying fundamentals at Broadcom, anchored by strong quarterly results and aggressive AI-driven expansion. He believes institutional backing and widened software investment keep the long-term outlook constructive, even as market sentiment remains short-term bearish. Technicals signal heavy selling and oversold conditions, but the business backdrop supports a potential recovery once pressure subsides. "Despite volatility, Broadcom’s fundamental growth story is very much intact, and I am optimistic about a medium-term rebound as the market digests the latest wave of AI demand and strategic investments."

Previously it was reported that Broadcom maintained robust long-term fundamentals and AI-driven growth, even as its stock faced persistent short- and medium-term volatility. The latest results and corporate developments reinforce this positive foundation, but with downside momentum intensifying and only a limited chance of near-term rebound, investors should closely monitor the $429.38 resistance level and be prepared for potential extension of the downtrend if support fails.

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.