Can Broadcom stock break $350.69 resistance after Connective Capital raises stake?

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Broadcom jumps 3.34% to $350.53 today

Highlights

Broadcom reported a 221% increase in AI revenue to $16.7 billion and total quarterly revenue of $29.6 billion.
The company generated $13.7 billion in free cash flow, covering a $3.1 billion dividend and $5.6 billion debt repayment, with significant shifts in institutional positions.
Broadcom stock trades with short-term strength but faces prevailing bearish momentum, with an expected price range of $336.85 to $364.21 and a higher probability of decline.

AI revenue surge and evolving fund flows support bullish outlook

Broadcom delivered outstanding results for the most recent quarter, reporting a 221% increase in AI revenue to $16.7 billion and total Q3 FY2026 revenue of $29.6 billion, with $13.7 billion in free cash flow that fully covered both a $3.1 billion dividend and a $5.6 billion debt paydown, according to Tipranks. This surge in realized AI sales and robust cash flows signals Broadcom's operational strength and responsiveness to market demand in the expanding AI sector. Further institutional activity was noted, with MarketBeat reporting that Connective Capital Management LLC sharply increased its position in Broadcom during the second quarter, while Corient Private Wealth LP trimmed its holdings. Together, these factors point to dynamic institutional flows and a positive business environment underpinning the stock's current momentum.

Bearish momentum persists despite intraday strength at key resistance

AVGO is trading above the MA-20, but remains below the MA-50 and MA-200, reflecting mixed technical signals. The next resistance is found at the Ichimoku Kijun level of $350.69. Momentum indicators skew negative: MACD issues a strong sell, ADX confirms a sell bias, and CCI suggests ongoing selling pressure. RSI is in the sell zone, though Stoch RSI flags overbought conditions, and intraday Bull/Bear Power readings also reflect seller dominance. The Awesome Oscillator is neutral, underscoring the conflict between recent intraday strength and medium-term bearish momentum.

Directional risk tilts bearish as price trades in consolidation range

In the short term, AVGO is expected to trade between $336.85 and $364.21, with a 40% chance of an upward move versus a 60% probability of decline. If the price remains within this corridor, sideways consolidation may occur. A sustained breakout above resistance could fuel a bullish run, while a move below support would confirm a short-term pullback.

Viktoras Karapetjanc, expert at Traders Union, sees strong fundamental and macro signals supporting Broadcom’s current uptrend. He notes that realized AI-driven revenue growth, solid cash flows, and active institutional flows all reinforce positive sentiment. Still, technicals remain mixed with near-term resistance at $350.69 and persistent selling pressure. The analyst believes a breakout above this level could trigger renewed bullish momentum, but consolidation is possible if resistance holds. "Broadcom’s quarterly performance shows real demand in the AI sector — I remain constructive as long as business momentum and liquidity stay strong."

Earlier, analysts noted that Broadcom shares faced persistent selling pressure, with technical resistance and market caution shaping a largely bearish outlook. The current article adds that, while operational performance and institutional flows remain strong, traders should watch for a potential breakout above the Ichimoku Kijun resistance at $350.69 as confirmation of a shift in the prevailing short-term trend.

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.