AVGO Stock Climbs Above $350 on Tech Partnerships but Faces Key Technical Test
Broadcom Inc. rebounds on major partnerships and improving sentiment, but must clear key resistance to confirm a sustained uptrend.
Quick overview
- Broadcom Inc. has rebounded from a recent decline, climbing back above $320, but needs to break through the $350-$360 resistance to confirm a sustained uptrend.
- Key partnerships with Google and Anthropic are enhancing Broadcom's long-term visibility and growth opportunities in advanced computing infrastructure.
- The company reported strong Q1 FY2026 results, with a 29% year-over-year revenue increase, driven primarily by its semiconductor segment.
- Broadcom's ongoing innovation and analyst support are contributing to a positive outlook, despite potential short-term volatility.
Broadcom Inc. rebounds on major partnerships and improving sentiment, but must clear key resistance to confirm a sustained uptrend.
Recovery Gains Momentum After Technical Breakdown
Broadcom Inc. has staged a notable recovery after a period of weakness that saw the stock break below the important $300 support level. The decline followed a failed attempt to hold above $350, where the 100-day moving average acted as firm resistance and triggered a broader pullback.
Since then, sentiment has improved. Shares have climbed back above $320 and recently gained around 5%, reflecting renewed buying interest. The rebound suggests investors are reassessing the company’s outlook, though the recovery remains incomplete. A decisive move above $350—and ultimately $360—will be needed to confirm a return to a broader uptrend.
Google Partnership Strengthens Long-Term Visibility
A key driver behind the recent rebound is Broadcom’s expanded collaboration with Google.
Under a long-term agreement, Broadcom will design and supply custom tensor processing units for Google’s next-generation infrastructure. In addition to semiconductors, the company will also provide networking components and data center solutions through 2031.
This partnership places Broadcom at the center of one of the largest infrastructure buildouts in the technology sector, offering strong visibility on future demand and reinforcing its strategic importance.
Anthropic Alliance Expands Growth Opportunities
Broadcom has also deepened its relationship with Anthropic, further strengthening its role in advanced computing infrastructure.
Starting in 2027, Anthropic is expected to access approximately 3.5 gigawatts of TPU-based compute capacity through Broadcom. This forms part of a broader effort to scale high-performance systems and reflects growing demand for custom chip solutions.
The agreement highlights Broadcom’s ability to support large-scale deployments and positions the company to benefit from increasing investment in next-generation computing platforms.
Outlook Hinges on Technical Breakout
While fundamentals are improving, the technical picture remains a key factor. Broadcom’s recovery will depend on its ability to break above the $350–$360 resistance zone.
Until that happens, the risk of consolidation or renewed downside cannot be ruled out. However, with strong partnerships and growing demand supporting its narrative, Broadcom appears increasingly well-positioned for a sustained recovery if key levels are cleared.
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 is already priced into leading infrastructure names.
AVGO Chart Daily – Returning Above the 100 SMA
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.
Partnerships Enhance Competitive Position
Beyond Google and Anthropic, Broadcom continues to expand its ecosystem through collaborations with major technology players, including Microsoft and ties to OpenAI.
These partnerships are focused on custom accelerators and infrastructure solutions, areas that are gaining importance as companies look to diversify away from reliance on dominant suppliers like NVIDIA.
This shift is opening new avenues for Broadcom to capture market share in high-performance computing and data center infrastructure.
Broadcom Q1 FY2026 Results: Strong Growth Across Revenue, Profit and Cash Flow
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.
🔹 GAAP Financial Highlights (Q1 FY2026 vs Q1 FY2025)
Net Revenue:
- $19.31 billion vs $14.92 billion
- +29% year-over-year
Net Income:
- $7.35 billion vs $5.50 billion
- +34% YoY
Diluted EPS:
- $1.50 vs $1.14
- +32% YoY
🔹 Non-GAAP Financial Highlights
Net Revenue:
- $19.31 billion (same as GAAP)
- +29% YoY
Net Income:
- $10.19 billion vs $7.82 billion
- +30% YoY
Diluted EPS:
- $2.05 vs $1.60
- +28% YoY
🔹 Cash Flow & Profitability Metrics
Cash Flow from Operations:
- $8.26 billion vs $6.11 billion
- +35% YoY
Adjusted EBITDA:
- $13.13 billion vs $10.08 billion
- +30% YoY
Free Cash Flow:
- $8.01 billion vs $6.01 billion
- +33% YoY
Capital Expenditures:
- $250 million during the quarter
Quarter-End Cash & Equivalents:
- $14.17 billion (down from $16.18 billion in prior quarter)
🔹 Revenue Breakdown by Segment
Semiconductor Solutions
- $12.52 billion (65% of total revenue)
- $8.21 billion in Q1 FY2025 (55% of total)
- +52% YoY growth
- Major driver of overall revenue expansion
Infrastructure Software
- $6.80 billion (35% of total revenue)
- $6.70 billion in Q1 FY2025 (45% of total)
- +1% YoY growth
- Stable but slower growth compared to semiconductor division
🔹 Shareholder Returns
- Quarterly dividend paid: $0.65 per share
- Total dividend payout: $3.09 billion
- Payment date: December 31, 2025
📊 Q2 FY2026 Outlook (Ending May 3, 2026)
- Revenue Guidance: Approximately $22.0 billion
- Adjusted EBITDA Margin Guidance: Around 68% of projected revenue
Innovation and Analyst Support Provide Tailwinds
Broadcom continues to demonstrate innovation in data center technology, recently showcasing advanced networking and optical solutions designed for high-performance workloads.
Analyst sentiment remains constructive, with firms such as Rosenblatt Securities maintaining a positive outlook and raising price targets. This support reflects confidence in Broadcom’s long-term growth trajectory, even as short-term volatility persists.
Software Expansion Adds Stability
In addition to semiconductors, Broadcom is expanding its enterprise software business. Its Symantec cybersecurity platform is gaining traction, particularly among mid-sized organizations seeking integrated security solutions.
This diversification helps balance revenue streams, reducing reliance on hardware cycles while strengthening recurring income sources.
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