Why is Broadcom stock down today? Key support levels to watch

Traders Union
All News
Stocks
Broadcom slides 3.39% today to $380.49

Highlights

Broadcom delivered record quarterly revenue of $22.19 billion, driven by 47.9% growth from strong AI chip demand.
AI semiconductor revenue surged 143% to $10.8 billion and OpenAI's multi-year chip partnership extends Broadcom's growth visibility through 2030.
Despite fundamental strength, AVGO faces near-term selling pressure, with oversold technical conditions and a likely trading range of $370.37 to $390.61.

AI-driven revenue surge as new OpenAI deal expands outlook

Broadcom reported record fiscal second-quarter 2026 earnings, with 47.9% top line growth on surging AI semiconductor demand and consolidated revenues reaching $22.19 billion, according to Seekingalpha and Theglobeandmail. Outperformance was supported by a sharp acceleration in AI semiconductor revenues, which rose 143% year-over-year to $10.8 billion and accounted for nearly half of the firm's overall revenue, based on figures from Finance Yahoo. The company also secured a multi-year hardware partnership with OpenAI to supply custom chips and AI infrastructure supporting workloads through 2030, as reported by Simplywall. These results establish an expanded growth runway and diversify future revenue streams, though price action has remained under broader selling pressure.

Oversold signals as price finds support above MA-200

AVGO is trading below the MA-20 and MA-50 on the H1 chart, with both averages confirming short- to medium-term weakness. On the daily chart, AVGO remains above the MA-200, anchoring its broader structure. The Ichimoku Kijun at $388.9 acts as initial resistance. Support lies near $370.37, with resistance forming at $390.61. RSI sits at 43.67, reflecting a sell bias, while Stoch RSI, CCI, and Bull/Bear Power collectively point to oversold momentum and seller dominance. MACD, ADX, and the Awesome Oscillator are neutral, suggesting a lack of strong short-term trend conviction.

Range-bound trading likely as downside risk dominates outlook

Over the next several sessions, AVGO is expected to remain within the $370.37 to $390.61 range. There is a 26% probability of an upward move, with a 74% chance of a further decline. The baseline scenario anticipates continued range-bound trading unless resistance at $388.9 is convincingly breached on volume, which could trigger a bullish reversal. Conversely, a close below $370.37 would likely accelerate downside momentum and confirm further weakness.

Anton Kharitonov, expert at Traders Union, believes Broadcom’s strong fundamental performance is overshadowed by current technical and sentiment weakness. Despite record AI-driven revenue growth and major partnerships, the stock remains under pressure below critical moving averages, with sellers dominant in the short term. Until $388.9 is reclaimed on convincing volume, the outlook stays defensive. "Base case remains range-bound with a downside tilt — I’d only consider bullish exposure above $388.9 with confirmation."

Previously it was reported that analysts maintained a moderately bullish outlook on Broadcom, supported by constructive technicals and ongoing growth initiatives. However, the current downside momentum and shifting indicator signals suggest traders should monitor support at $370.37, as sustained weakness below this level could confirm a deeper correction despite Broadcom's robust earnings performance.

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.