Broadcom stock falls as Q3 AI revenue guidance misses analyst targets

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Broadcom slides 4.35% on AI guidance

Highlights

Broadcom posted record $10.8 billion AI chip revenue, up 143% year-over-year, driving total sales growth of nearly 48%.
Disappointing Q3 outlook—with $16 billion AI revenue guidance and declining gross margins—led to weaker market sentiment despite large-scale strategic partnerships.
Technicals indicate broad downside risk as AVGO/USD trades below key moving averages, with a projected $348.96–$404.64 range and a 68% probability of further declines short term.

Market disappointment as record AI gains meet cautious forecasts

Broadcom’s fiscal second-quarter 2026 earnings revealed record AI chip revenue reaching $10.8 billion, representing a 143% year-over-year increase, and total revenue growth of nearly 48%. However, following the June 3 results, the company issued guidance for third-quarter AI revenues at $16 billion along with a lower gross margin outlook, which did not surpass market expectations and contributed to dampened sentiment. Additionally, the launch of the $35 billion AI XPV Platform in partnership with Apollo and Blackstone was designed to fund more than 20 gigawatts of AI infrastructure deployments worldwide through 2028 and was accompanied by a focus on supporting Anthropic’s capacity expansion through Broadcom’s chips and networking solutions. These substantial developments in earnings and strategic initiatives have coincided with ongoing pressure on the stock.

Mixed technicals as intraday momentum diverges from broader weakness

The $390.49 (MA-20) and $426.21 (MA-50) levels on the H1 chart currently serve as immediate resistance, while the price remains above the longer-term support of the MA-200 daily at $356.79. The Ichimoku Kijun line at $424.78 defines another resistance region. Momentum signals are weak, with MACD issuing a strong sell signal and RSI at 42.36 also indicating selling pressure. Meanwhile, ADX and CCI remain neutral, Stoch RSI is overbought, and intraday BBP continues to highlight buyer dominance despite broader negative momentum. This divergence between intraday and broader trends suggests a mixed technical environment.

Downside risk predominates as price likely to stay rangebound

Over the next 2–3 trading days, the expected price range for AVGO is $348.96 to $404.64, representing the volatility band relative to current levels. The probability of further upside is estimated at 32%, while the odds of continued downside stand at 68%. Baseline expectations call for the price to remain within this corridor. A breakout above $404.64 could indicate the start of a recovery, whereas a close below $348.96 may accelerate additional weakness.

Anton Kharitonov, expert at Traders Union, sees Broadcom facing pressure after its Q3 AI revenue guidance missed market expectations and gross margin outlook weakened. He notes that major technical indicators remain bearish, with resistance between $390.49 and $426.21 and weak intraday momentum signals. The strong AI infrastructure partnership news failed to offset cautious sentiment. "Until AVGO closes above $404.64, I remain defensive and see limited near-term upside for the stock."

Previously it was reported that Broadcom maintained strong long-term fundamentals and AI-driven growth despite heightened near-term volatility in its share price. With the current analysis highlighting persistent technical headwinds amid robust AI performance, investors should closely monitor the $404.64 resistance and $348.96 support as decisive levels for potential breakout or deeper downside in the days ahead.

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.