AVGO Stock Rebounds After Breakdown but Buyers Need to Clear $350 Resistance

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Broadcom Inc. is attempting a recovery after breaking key support levels, as strong AI demand and partnerships clash with weakening technical momentum.

Technical Breakdown Followed by Rebound Attempt

Broadcom shares came under notable pressure last week, breaking below the critical $300 support level and falling to their lowest point since September 2025. The move marked a clear shift in short-term momentum, as the stock failed to hold onto gains from its earlier post-earnings rally.

The weakness followed a rejection near the $350 level, where the 100-day simple moving average acted as strong resistance. Selling pressure at that level triggered a gradual decline, eventually leading to a breakdown below key support. However, sentiment has improved in recent sessions, helping the stock rebound above $315 after briefly dipping below $290 earlier in the week.

For the recovery to sustain, Broadcom will likely need to reclaim the $350 level and break above the 100-day moving average. Without that, the risk of another pullback below $300 remains elevated.

Partnerships Strengthen Long-Term Position

Despite technical challenges, Broadcom continues to build a strong position within the artificial intelligence ecosystem. The company maintains key partnerships with major technology players such as Google and Microsoft, while also expanding collaboration with OpenAI.

These partnerships are focused on developing custom AI accelerators, an area of increasing importance as companies look to reduce dependence on dominant suppliers like NVIDIA. This strategy positions Broadcom as a critical player in the next phase of AI infrastructure development.

Innovation and Analyst Confidence Provide Support

At the Optical Fiber Communication Conference and Exhibition 2026, Broadcom showcased advanced networking solutions designed for high-performance data centers. These included next-generation switches and optical technologies tailored for AI workloads, reinforcing the company’s innovation pipeline.

Analyst sentiment remains constructive, with Rosenblatt Securities raising its price target to $500. This reflects confidence in Broadcom’s ability to capitalize on long-term demand for AI infrastructure despite near-term volatility.

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 is already priced into leading infrastructure names.

AVGO Chart Daily – The Support Has Been Broken

The bearish momentum continued and AVGO shares fell last month, threatening to break the 200-day simple moving average (red) which has acted as support before. However we saw a strong rebound after the earnings, taking the stock to $350 but the 100 daily SMA (green) rejected the price and we saw a reversal lower. AVGO stock broke below the 200 daily SMA last week, but we’re seeing a reversal this week, reclaiming some of the losses.

Broadcom reported solid first-quarter results, with revenue rising 29% year-over-year. The semiconductor segment led growth, with revenue up 52% as demand for advanced chips and networking solutions accelerated.

Chip revenue reached $8.4 billion, driven by hyperscale data center investment in AI infrastructure. CEO Hock Tan expects AI semiconductor revenue to climb further next quarter, reinforcing a strong growth trajectory.

Expanding Software Business Adds Diversification

Beyond semiconductors, Broadcom is also expanding its presence in enterprise software. Its Symantec cybersecurity platform continues to gain traction, particularly among mid-sized organizations seeking integrated security solutions.

By combining endpoint protection, network security, cloud capabilities, and AI-driven analytics, Broadcom is broadening its customer base and reducing reliance on hardware-driven revenue streams.

Conclusion: Broadcom’s recent price action highlights the tension between short-term technical weakness and strong long-term fundamentals. While the stock faces near-term pressure after breaking key support levels, its growing role in AI infrastructure and expanding software footprint provide a solid foundation for future growth.

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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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