Broadcom (AVGO) Shares Hit a Record Ahead of Earnings

Broadcom (AVGO) shares reached an all-time high ahead of the company’s quarterly results, due this Thursday, supported by strong fundamental drivers:

→ Partnership with Microsoft: Media reports suggest Broadcom is in talks with Microsoft to develop custom AI chips.
→ Analyst optimism: UBS called Broadcom a “top investment” in the AI sector, citing explosive demand for hardware, and raised its price target to $472.
→ Shift in strategy: Market participants believe the company is refocusing on its own chips to win AI hardware market share from Nvidia.

We highlighted additional bullish drivers in our 14 October analysis.

Technical Analysis of AVGO Shares

Following a bullish gap on 4 September, price movements have formed an upward channel (shown in blue).

From a bullish perspective:
→ the channel median is acting as support (indicated by the arrow);
→ the wide bullish candle on 24 November signals strong buying pressure;
→ the share is outperforming equity indices.

From a bearish perspective:
→ the AVGO share price is currently near the upper boundary of the channel;
→ the psychological $400 level is showing signs of resistance;
→ at peak B the price rose only slightly above the previous peak A before pulling back – a sign of a potential bull trap.

It is possible that in the coming days, AVGO may show signs of consolidation near the upper channel boundary, while the earnings release could trigger a volatility spike and a large gap, given the market’s elevated expectations.

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