-2.92% for Broadcom stock as fading momentum weighs on direction

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Broadcom slides 2.92% after chip launch

Highlights

OpenAI and Broadcom launched Jalapeño, a custom AI inference chip, confirming Broadcom's major commitment to advanced AI semiconductor hardware amid surging demand.
Broadcom's semiconductor revenue grew 143% year-over-year with $30 billion in AI orders and multi-year deals, extending revenue visibility into 2028.
The stock faces short- and medium-term selling pressure, likely consolidating between $358.8 and $392.78, with a high risk of further downside.

AI chip launch and strong orders sustain optimism despite selling pressure

On June 24, 2026, OpenAI and Broadcom announced the launch of 'Jalapeño,' a custom AI inference chip for large language models, marking a confirmed move into advanced AI semiconductor hardware according to Broadcom. This initiative is supported by Broadcom's reported 143% year-over-year growth in its semiconductor segment, underpinned by strong demand for AI chips and multi-year agreements with Alphabet, Anthropic, Meta, and OpenAI, with total AI orders topping $30 billion and extending revenue visibility into 2028, as noted by Seekingalpha. Auxiliary partnerships, such as Celestica's involvement in supporting system rollouts, provide the operational foundation for this technology push, though price action has remained under broader selling pressure.

Weak momentum and mixed signals as technical barriers hold

AVGO is trading below the MA-20 and MA-50 on the hourly chart, while holding above the MA-200 on the daily timeframe. The Ichimoku Kijun sits at $395.79, acting as immediate resistance. Momentum readings are negative: the Moving Average Convergence Divergence (MACD) signals a strong sell, while the Average Directional Index (ADX) is neutral, reflecting weak trend conviction. The Relative Strength Index (RSI) prints 42.59 in a sell zone, Stochastic RSI suggests strong sell, and Commodity Channel Index (CCI) is neutral. Bull/Bear Power indicates overbought levels, highlighting buyer presence intraday despite the prevailing down move, and the Awesome Oscillator remains neutral, indicating no clear trend reinforcement.

Limited rebound prospects as downside risk overshadows consolidation

In the short term, AVGO is likely to fluctuate within a volatility band of $358.8 to $392.78. The probability of an upward move remains low, and the risk of additional downside is high, with upward progress limited for now. If price breaks above $395.79, a short-term reversal could develop, while a sustained move below $358.8 would open a path for further declines. The baseline expectation is continued consolidation in a sideways trading corridor.

Viktoras Karapetjanc, analyst at Traders Union, highlights Broadcom's strong AI-driven growth and strategic partnerships as key positives. He believes recent demand momentum and the Jalapeño chip launch reinforce the company’s long-term competitive positioning. Despite short-term selling pressure and consolidation below key resistance at $395.79, the analyst sees solid fundamentals supporting future upside. In his view, the risk-reward appears attractive for patient investors. "Broadcom's deeper integration into the AI ecosystem signals lasting business strength, setting the stage for renewed upward potential as market sentiment stabilizes."

Previously it was reported that OpenAI and Broadcom unveiled the custom Jalapeño AI chip, marking Broadcom's expansion into advanced semiconductor hardware for AI workloads. With Broadcom's strong pipeline of multi-year AI chip orders and continued sector momentum, traders should monitor for a potential shift in sentiment at the $395.79 resistance, which could determine the next directional move in AVGO.

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.