AVGO Stock Heads for $300 After Failing at $350, Ahead of Broadcom OFC Showcase

Quick overview

Shares of Broadcom Inc. briefly surged after strong earnings and accelerating AI demand, but the rally quickly faded as the stock failed to break key resistance near $350.

Stock Rally Fails at Key Resistance

Shares of NASDAQ: AVGO have been under pressure since early December as investors grow increasingly cautious toward large-cap semiconductor companies. Although sentiment improved following the company’s first-quarter fiscal 2026 earnings release, the recovery proved short-lived.

The stock rallied after the results were published, supported by stronger-than-expected financial performance and optimistic guidance tied to artificial intelligence demand. However, buyers failed to push the price above the important $350 resistance level, which has become a key technical barrier.

After failing to break higher, the rally lost momentum and the stock reversed lower during the following sessions. AVGO is now moving back toward the $300 level, a zone that investors are watching closely as a potential support area.

Broadcom Highlights AI Technology at OFC

Broadcom is also showcasing its latest innovations at the Optical Fiber Communications Conference and Exhibition in Los Angeles.

At the event, the company is presenting new advancements across its AI infrastructure portfolio, including solutions in XPU architectures, Ethernet networking, optical technologies, SerDes, digital signal processing, and PCIe connectivity. Broadcom engineers are also participating in technical presentations and joint demonstrations with industry partners, highlighting how the company’s technologies help scale the next generation of AI data centers.

Technical Analysis – The Lower Highs Continue

Broadcom entered the new year on uncertain footing, with its share price dipping below $300 as confidence across the AI semiconductor complex began to fray. After months of near-uninterrupted gains, investors have turned more defensive, questioning how much of the AI opportunity is already priced into leading infrastructure names.

AVGO Chart Daily – The 100 SMA Is Under Attack

The bearish momentum continued and AVGO shares fell sharply last month, threatening to break the 100-day simple moving average (red) which has acted as support before. However the 100 SMA (red) held as support and we saw a strong rebound after the earnings last week, taking the stock to $350. But the 50 SMA (green) rejected the price on Monday and we saw a reversal lower this week. So a retest of the 100 next week and probably a fall below $300.

Strong First-Quarter Financial Results

For the quarter ended February 1, 2026, Broadcom reported strong financial results that underscored the company’s growing importance in the AI semiconductor ecosystem.

Revenue increased 29% year-over-year, supported by strong demand across its semiconductor solutions segment and continued operating leverage. The company also delivered solid growth in earnings and cash flow while maintaining strong EBITDA margins.

The semiconductor solutions division led the performance, with revenue from the segment surging 52% compared with the same period last year. Strong free cash flow generation further reinforced Broadcom’s position as one of the most profitable companies in the semiconductor industry.

AI Revenue Hits Record Levels

Artificial intelligence continues to be the primary growth driver for Broadcom. During the quarter, AI-related revenue reached $8.4 billion, representing 106% year-over-year growth.

Demand has been driven by hyperscale customers investing heavily in custom AI accelerators and high-performance networking solutions required to power large data-center infrastructure.

Chief Executive Officer Hock Tan said the company expects AI semiconductor revenue to climb further to $10.7 billion in the second quarter, highlighting strong ongoing demand for advanced AI computing infrastructure.

Outlook: Although Broadcom continues to benefit from powerful AI-driven demand, the stock’s failure to break through resistance suggests that investors remain cautious about valuations in the semiconductor sector. While strong fundamentals and rising AI revenue provide long-term support, the near-term direction of AVGO shares may depend on whether the stock can stabilize near the $300 support level and regain upward momentum.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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