Broadcom stock price prediction: Support test after Marvell Technology custom silicon deal with Google

Traders Union
All News
Stocks
Broadcom drops 4.58% today to $362.15

Highlights

Marvell Technology's new custom silicon agreement with Google has raised competitive risk for Broadcom's core chip segment.
Valuation concerns, institutional selling, and worries about peaking AI investments have reduced demand for Broadcom shares.
Shares of Broadcom trade below key moving averages with negative momentum indicators, projecting a likely range of $340.75 to $383.55 and a 78% probability of further downside.

Competitive threats and AI cycle fears stoke institutional selling

The recent custom silicon agreement between Marvell Technology and Google has intensified competitive pressure on Broadcom's core chip business, causing a reassessment of future demand for its products, according to Tradingkey. Additional headwinds have arisen from institutional selling, valuation concerns, and apprehension over a potential peak in the AI investment cycle, diminishing investor appetite for Broadcom shares, as reported by Quiverquant. The stock has also faced bouts of volatility tied to reported VMware security vulnerabilities and regulatory scrutiny of its AI financing structures, contributing to market uncertainty and compounding the broader decline, as noted by Fxleaders.

Oversold signals persist as momentum and support erode

Technically, AVGO is trading below its MA-20 at $385.39, MA-50 at $404.62, and MA-200 at $369.21 on the H1 chart. Immediate resistance is defined by the Ichimoku Kijun level at $389.96. Momentum gauges such as MACD and ADX both indicate a sell signal. RSI, Stochastic RSI, CCI, and Bull/Bear Power each reflect strong oversold conditions and seller dominance, while the Awesome Oscillator corroborates the prevailing downtrend. There are no positive divergences across oscillators, with moderate volatility observed as the price holds near today's high following a sharp decline and gap from the previous session.

Downside risk prevails as recovery hinges on resistance break

Looking to the short-term, AVGO is expected to consolidate within a volatility band of $340.75 to $383.55. The probability of an upward move is calculated at 22%, while downside risk has a higher likelihood at 78%. A bullish breakout above resistance would be required to trigger any recovery attempts, whereas a sustained move below support could accelerate renewed selling.

Viktoras Karapetjanc, expert at Traders Union, sees clear competitive and sentiment headwinds weighing on Broadcom’s share price. He notes that institutional selling and recent market news have reinforced short-term downside, but the longer-term AI story remains structurally robust. The expert believes tactical risk remains elevated for now, though any stabilization above $360 could attract renewed buying interest. "Short-term weakness dominates, but I remain confident that AI-driven demand and Broadcom’s market position will reassert themselves once this volatility period passes."

Previously it was reported that Broadcom faced heightened pressure from institutional selling, credit concerns, and uncertainty surrounding its AI chip financing, leading to a bearish outlook. The current analysis adds intensifying competitive risks and confirms that downside risk remains elevated, making it essential for traders to closely monitor any price action near the $340.75 support level for signs of further selling or potential stabilization.

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.