AI chip sales surge: Can AVGO break the $365.33 resistance to extend gains?

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Broadcom gains 3.24% today to $358.56

Highlights

Broadcom reported fiscal third quarter revenue of $29.6 billion, up 85.5% year over year, driven by strong AI chip sales.
AI semiconductor revenue jumped 221% to $16.7 billion, with major orders from OpenAI, Anthropic, and Meta Platforms.
Shares of Broadcom trade in a $345.67 to $365.33 range, with mixed momentum signals and a 60% probability of moving down short term.

AI revenue surge and capital returns drive Broadcom’s demand outlook

Broadcom posted a total revenue of $29.6 billion for its fiscal third quarter, marking an 85.5% year-over-year increase, according to Finance Yahoo. This surge was driven in part by a 221% year-over-year jump in AI semiconductor revenue to $16.7 billion, highlighting expanding sector leadership and demand in advanced chip segments. The company has also committed $8.45 billion to share buybacks and $10.53 billion in debt repayments over the first three quarters of fiscal 2026, with a scheduled dividend by September 2026, as reported by Fool, reflecting a balanced approach to capital allocation. Increased orders for custom AI processors from clients such as OpenAI, Anthropic, and Meta Platforms further reinforce the growth narrative and could attract sustained investor interest.

Mixed momentum signals as AVGO tests trading corridor support

Immediate technical references show AVGO has cleared the MA-20 at $343.48 and MA-50 at $351.2 on the hourly chart, while still trading below the long-term MA-200 at $369.18. The Ichimoku Kijun at $343.38 is acting as a strong support level near the lower bound of the current trading corridor. RSI stands at 52.61 and CCI remains in buy territory, but both Stochastic RSI and Bull/Bear Power indicate overbought conditions, signaling that the current buyer momentum may be stretched in the short term. MACD holds neutral, ADX signals sell, and the Awesome Oscillator supports the broader trend, presenting a mixed picture between momentum oscillators and trend-following indicators.

Downside favored as traders watch volatility band for breakout cues

In the short term, AVGO is expected to fluctuate within a volatility band of $345.67 to $365.33 as traders assess further catalysts. The probability favors a move down (60%) over an upward breakout (40%), suggesting downside pressure is more likely unless there is renewed buying above resistance. If price clears $365.33, a bullish extension could form, while a break below $345.67 would open the way for additional retracement.

Viktoras Karapetjanc, expert at Traders Union, sees Broadcom’s robust revenue growth and capital allocation as supporting long-term value. He notes increasing institutional demand from major AI clients and strong financial discipline as positive macro and fundamental drivers. Despite technical indicators suggesting a possible short-term pullback, Karapetjanc believes the company’s operational momentum and sector positioning keep sentiment constructive. In his words: "Broadcom’s fundamental growth and client expansion point to underlying strength, and I see further upside potential if key resistance levels are reclaimed."

Earlier, analysts noted that despite strong operational results and institutional flows Broadcom faced technical resistance and a predominantly bearish short-term outlook. The current analysis indicates that while positive momentum has pushed AVGO above key moving averages, traders should monitor the $365.33 resistance for signs of a potential bullish extension or be prepared for additional retracement if support at $345.67 fails.

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.