Broadcom Stock Market Price Hits $1,735 on AI-Driven Momentum

Broadcom Trades at $1,735 – Extends Gains on AI and Networking Demand

Broadcom Inc. (NASDAQ:AVGO) is trading at $1,735, up 0.72% in today’s session, continuing a steady climb as investors position ahead of the company’s upcoming earnings release. The stock remains a prime beneficiary of the AI infrastructure boom, driven by robust networking chip demand, hyperscaler spending, and cloud service provider upgrades.

Shares have advanced nearly 14% over the past month, outperforming the broader Nasdaq Composite, which has gained around 8% in the same period. The rally is supported by institutional accumulation, with daily average trading volumes above the 20-day norm.

Technical Levels – Bulls Defend $1,700

Broadcom’s immediate support lies at $1,700, reinforced by the 20-day moving average. A break below this could open downside risk toward $1,665, an area that held in late July.

Resistance is now seen at $1,750, followed by the all-time high near $1,790. A decisive close above $1,790 would signal a breakout, potentially targeting $1,820–$1,850 in the short term.

Fundamental Drivers – AI, Networking, and Cloud

Broadcom continues to benefit from surging demand for AI-related networking products. Its custom silicon solutions for hyperscalers are capturing significant market share, while its switching and routing products are seeing accelerated adoption across data centers.

The VMware integration is also progressing ahead of schedule, offering new cross-selling opportunities in cloud infrastructure and virtualization markets. Analysts expect sequential growth in semiconductor solutions, while software revenue remains steady.

Earnings Outlook – Margin Strength Intact

Wall Street forecasts Broadcom’s next quarterly revenue at $12.1 billion, with adjusted EPS around $11.15, both reflecting mid-to-high single-digit year-over-year growth. Operating margins are expected to stay above 60%, aided by pricing discipline and product mix improvements.

Free cash flow generation remains a key highlight, with estimates pointing to over $5 billion for the quarter. This supports an aggressive dividend policy, with the current annualized payout yielding around 1.7%.

Technical Indicators – Momentum Still Strong

The RSI sits at 64, nearing overbought territory but still showing room for further upside. The MACD remains above the signal line, confirming ongoing bullish momentum. Broadcom trades above its 50-day ($1,672) and 200-day ($1,497) moving averages, cementing its strong uptrend.

Trading Playbook for AVGO

• Bullish setup: Buy pullbacks near $1,700–$1,705 with stops under $1,665, targeting $1,750 and then $1,790.

• Breakout trade: Enter on a confirmed close above $1,790, targeting $1,820–$1,850.

• Risk management: Avoid long exposure if price closes below $1,665, which would shift short-term sentiment.

Verdict on Broadcom at $1,735

Rating: Buy – Broadcom remains well-positioned for structural AI-driven growth, with robust fundamentals, high-margin resilience, and strong institutional interest. Upside toward $1,800+ remains probable in the near term if earnings meet or exceed expectations.

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