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Broadcom Stock Struggles After Disappointing EarningsBroadcom ( NASDAQ:AVGO ) Faces Challenges Post Earnings: What Investors Need to Know? Broadcom Inc. (NASDAQ: NASDAQ:AVGO ), a key player in the semiconductor and software sectors, has seen its stock tumble after the company reported a loss in its fiscal third-quarter earnings. The loss was primarily attributed to merger-related expenses and amortization costs associated with its recent acquisition of VMware. Here, we dive into the fundamental and technical aspects of Broadcom’s stock, analyzing the challenges and opportunities that lie ahead. Earnings Report Highlights: - Broadcom swung to a net loss of $1.875 billion in its fiscal third quarter, compared to a profit of $3.3 billion in the same quarter last year. - Adjusted earnings, which exclude significant acquisition-related expenses, came in at $1.24 per share. - The company’s revenue for the quarter met expectations, but its forward guidance of $14 billion for the fiscal fourth quarter fell just shy of analyst predictions. - CEO Hock Tan emphasized the continued strength of Broadcom’s AI-driven semiconductor solutions, noting a projected $12 billion in AI-related revenue for the full year, driven by ethernet networking and custom accelerators for AI data centers. Merger Impact: The recent acquisition of VMware has added significant restructuring costs to Broadcom’s financial statements. The integration of the software firm is crucial for Broadcom's long-term strategy of diversifying its revenue streams beyond semiconductors, particularly as it aims to capitalize on the rapidly growing demand for AI and data center solutions. Market Reaction: Broadcom’s stock dropped over 6% in after-hours trading following the earnings release. Despite this pullback, the stock has risen approximately 40% year-to-date, benefiting from the market’s appetite for AI-related growth stories. However, the recent dip underscores investor concerns about the near-term impact of acquisition-related expenses and the company’s modest revenue outlook. Technical Analysis Symmetrical Triangle Breakdown: Broadcom’s stock has been consolidating within a symmetrical triangle pattern on declining volume since mid-June, a formation that often precedes a breakout or breakdown. The recent disappointing revenue outlook has pushed the stock below the triangle’s lower trendline, indicating a bearish breakdown that could signal the start of a new downward trend. Key Support Levels to Watch: 1. $141 Level: This level is near a consolidation zone that formed between March and June, marking the first potential area of support. If this level holds, it could provide a buying opportunity for investors looking for a near-term bounce. 2. $120 Level: Should the stock fall below $141, the next significant support lies at $120, an area aligned with prominent swing lows from earlier in the year. This level could attract buyers who see the pullback as a chance to enter at a more attractive price. 3. $110 Level: Further downside could take Broadcom to $110, near the low of a retracement that occurred in early January following a strong December rally. This level could serve as a critical test for Broadcom’s longer-term uptrend. RSI and Market Sentiment: Currently, Broadcom’s Relative Strength Index (RSI) hovers around 40-45 in premarket trading, placing the stock in oversold territory. This indicates that the recent sell-off may be overextended, potentially setting up the stock for a short-term rebound. However, the broader sentiment remains cautious given the company's near-term financial headwinds. Outlook for Broadcom: Is the Stock a Buy, Sell, or Hold? Broadcom's mixed earnings report and subdued revenue guidance have introduced a degree of uncertainty into the stock’s near-term trajectory. While the company’s ongoing integration of VMware and its focus on AI and data center solutions present long-term growth opportunities, the immediate impact of acquisition costs and a lukewarm revenue outlook have weighed heavily on investor sentiment. For those with a long-term investment horizon, the current pullback could present a buying opportunity, especially if Broadcom ( NASDAQ:AVGO ) manages to stabilize at one of the key support levels mentioned. However, traders should remain vigilant for potential further downside, particularly as the stock navigates the aftermath of its recent technical breakdown. In summary, Broadcom’s fundamentals remain strong, underpinned by its leadership in AI-driven semiconductor solutions. However, the stock’s technical indicators suggest caution is warranted in the short term. Investors should watch closely for signs of stabilization before committing new capital, particularly given the broader market's current volatility.
NASDAQ:AVGOShort
by DEXWireNews
Broadcom's Analysis: Is the Chipmaker Ready for a Comeback?Key Takeaways: - Broadcom ( NASDAQ:AVGO ) shares have reclaimed their 50-day moving average after a steep correction but face volatility ahead of the upcoming Q3 earnings report. - Investors are focusing on Broadcom's AI chip sales growth and its full-year outlook amid rising AI demand. - Key technical levels suggest potential volatility, with both downside and upside price targets in play. Broadcom’s Resurgence and Challenges Broadcom ( NASDAQ:AVGO ), one of the leading chipmakers, is preparing to release its fiscal Q3 earnings report, with investors keenly watching its AI sales growth and forward-looking guidance. Recent quarters have seen Broadcom ( NASDAQ:AVGO ) benefit from increased demand for its custom AI chips, a trend that has bolstered its financial performance. However, after peaking in mid-June, Broadcom shares faced a significant sell-off, falling as much as 31% before mounting a recovery. The stock managed to reclaim its 50-day moving average by the end of August, signaling a potential shift in momentum. Despite this recovery, it's crucial to note that the buying activity occurred on declining volumes, which often points to a lack of strong institutional support. This situation sets the stage for heightened volatility as the company approaches its earnings announcement. Technical Analysis: Key Levels to Watch 1. Decreasing Volume and Recent Recovery: The recent bounce in Broadcom ( NASDAQ:AVGO ) shares is noteworthy, as it reclaimed the 50-day moving average—a critical technical indicator suggesting near-term strength. However, the recovery on declining volume is a cautionary signal. Institutional investors typically drive strong moves, and a lack of their involvement could suggest that the current recovery lacks conviction. 2. Lower Price Levels to Monitor: - $157 Level: This support zone, approximately 4% below the recent close, aligns with previous swing lows from June and August. If Broadcom's stock falls below this level, it could signal further downside pressure. - $141 Level: Should the $157 level fail to hold, $141 becomes the next critical area to watch. This level represents a prior consolidation zone where the stock traded sideways between March and June. Investors may see this as a potential buying opportunity if the stock reaches this area. 3. Higher Price Levels to Watch: - $168 Resistance: A move higher could propel the stock to $168, where it may encounter resistance. This zone corresponds to several gap trading levels formed in June and July, as well as the highs from August. - $195 Target Above All-Time High (ATH): For those looking beyond the immediate resistance, Broadcom could target $195. This level is calculated by projecting the stock’s previous trending move from December to March and repositioning it from the August swing low. This upside target would place Broadcom about 5% above its all-time high, indicating significant potential for a breakout. AI Growth as a Catalyst Broadcom’s fundamentals remain strong, with AI chip sales serving as a primary growth driver. The company’s custom chips are in high demand as industries increasingly rely on artificial intelligence, a sector expected to continue expanding in the coming years. Investors will be closely examining the company's guidance during its Q3 report, looking for signs of sustained momentum. However, Broadcom ( NASDAQ:AVGO ) is not without its challenges. The broader tech sell-off and profit-taking after the company's 10-for-1 stock split in July have weighed on share prices. Despite this, analysts maintain a "Strong Buy" rating, citing the company’s leading market position and the growing importance of its AI chips. Technical Outlook: Mixed Signals As of now, Broadcom shares are down 4.54% in Tuesday's trading, with an RSI of 46. The RSI nearing the oversold region suggests that the stock could be positioning itself for a potential bounce. However, given the declining volumes and lack of institutional activity, investors should remain cautious and closely watch the aforementioned technical levels. Broadcom’s stock trading above key moving averages offers a glimmer of hope, yet the market’s reaction to the upcoming earnings report will be pivotal. Any positive surprise in AI sales growth or forward guidance could provide the necessary catalyst for Broadcom to reclaim its highs and potentially push towards the $195 target. Conclusion: A Critical Juncture for Broadcom Broadcom’s journey back to its highs is fraught with both opportunities and challenges. The technical setup suggests a stock on the rebound, but with caution flags raised due to the lack of volume support. Fundamentally, the chipmaker’s focus on AI positions it well for future growth, but investors will need to see continued execution and positive guidance in the upcoming earnings report. For now, NASDAQ:AVGO remains a stock to watch closely, with key support and resistance levels defining its near-term path. Investors should be prepared for heightened volatility but also recognize the potential upside if Broadcom’s earnings and outlook exceed expectations.
NASDAQ:AVGO
by DEXWireNews
Broadcom - Just be careful...NASDAQ:AVGO is quite overextended and retesting resistance so you have to be careful. Broadcom is rallying. This is a pretty obvious fact, considering that Broadcom is up roughly +330% over the past 1.5 years. Eventually we will see a correction, the only question is when and where. Currently, Broadcom is retesting a resistance trendline which has been pushing price lower for over a decade. Maybe this is a good area to close partials and monitor price closely. Levels to watch: $1.840, $1.140 Keep your long term vision, Philip - BasicTrading
NASDAQ:AVGOShort
by basictradingtv
3
Broadcom Revenue Beats Estimates As AI Powers DemandTech giant Broadcom ( NASDAQ:AVGO ) surpasses market expectations for first-quarter revenue fueled by heightened demand for advanced networking chips powering artificial intelligence (AI) applications. However, shares dip post-announcement amidst mixed investor sentiments. Key Highlights: Broadcom's robust performance in the first quarter underscores the pivotal role of AI in driving demand for cutting-edge networking solutions, particularly within cloud infrastructure. While smaller rival Marvell Technology faces challenges with weak demand for custom AI chips, Broadcom ( NASDAQ:AVGO ) stands resilient with its diversified portfolio and strategic positioning in the AI computing landscape. Despite maintaining a conservative annual revenue forecast, Broadcom's continued growth trajectory and expansion into software and tech firms affirm its status as a key player in the evolving tech ecosystem. Market Dynamics: The surge in demand for infrastructure upgrades, driven by the proliferation of generative AI applications, propels Broadcom's semiconductor solutions segment, albeit falling slightly short of revenue estimates. Infrastructure software revenue experiences a significant uptick, surpassing expectations and contributing to Broadcom's overall revenue growth. Future Outlook: Broadcom's entrenched position in AI-driven data center infrastructure positions it as a prime beneficiary of the ongoing AI revolution. Continued investments in software and tech acquisitions, coupled with sustained innovation in networking solutions, are poised to drive Broadcom's future growth and market relevance. Conclusion: Broadcom's ( NASDAQ:AVGO ) resilience in navigating market challenges while capitalizing on emerging opportunities reaffirms its status as a leading player in the tech industry. As AI continues to reshape the technological landscape, Broadcom's ( NASDAQ:AVGO ) expertise in providing essential networking solutions places it at the forefront of innovation and growth.
NASDAQ:AVGOLong
by DEXWireNews
Broadcom Ltd (NASDAQ: $AVGO) Growth MomentumPrice Momentum AVGO is trading near the top of its 52-week range and above its 200-day simple moving average. The 50-day Moving Average is above the 200-day moving average meaning NASDAQ:AVGO may continue its Bullish Trend. NASDAQ:AVGO 's 50-day moving Average crosses the 100-day Moving Average indicating a partial "Golden Cross". Investors have been pushing the share price higher, NASDAQ:AVGO still appears to have upward momentum. This is a positive sign for $AVGO.
NASDAQ:AVGOLong
by DEXWireNews
Broadcom (AVGO) -> Stronger Than NvidiaMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️ I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Broadcom. Over the past 12 months Broadcom stock rallied more than 120% towards the upside, following the major hype in the whole semiconductor and AI sector. After this recent pump it is quite expected that we will see a short term correction and if Broadcom retests the previous all time high at $630, this will be a perfectly bullish setup. - - - - - - - - - - - - - - - - - - - - I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy. Keep the long term vision🫡
NASDAQ:AVGOShort
by basictradingtv
30
Broadcom: Slide 🛝Broadcom is amusing itself in the playground consisting of the green zone between $648.08 and $577.41 and has lately been lingering mainly at the 78.60%-retracement at $621.54. However, soon, the share should switch over to the red slide leading below the support at $572.10 and into the lower green zone between $531.78 and $465.02 to finish wave 2 in green. This low should then grant the share new upwards momentum. There is a 37% chance, though, that Broadcom could prefer the jungle gym and thus climb above the resistance at $648.50. In that case, we would expect a new high in the form of wave alt.1 in green in the magenta-colored zone between $673.07 and $774.04 first, before the downwards movement can start again.
NASDAQ:AVGO
by MarketIntel
Looking to buy Broadcom at 50 EMA.Broadcom - 30d expiry - We look to Buy at 601.11 (stop at 579.11) Price action continues to trade around the all-time highs. Daily signals are bullish. There is no clear indication that the upward move is coming to an end. We look to buy dips. 50 1day EMA is at 600.11. A lower correction is expected. Bespoke support is located at 600. This stock has seen good sales growth. Our profit targets will be 654.32 and 664.32 Resistance: 648.50 / 665.00 / 677.76 Support: 625.00 / 615.00 / 600.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NASDAQ:AVGOLong
by VantageMarkets
AVGO - bearish move short-termAVGO has been in a short-term uptrend. However it looks that the price is approaching the key resistance. We expect that the stock price may decrease in the coming period. Therefore, we recommend taking a short position when and only if the price breaks the upsloping trendline that has been acting as a support. Once the price breaks this support , we can enter a short position, however it’s also possible to enter short when the price bounce back up and retests the trendline, get rejected and confirm it as a resistance. When we look at the RSI, we see that there is a regular bearish divergence. That divergence shows the buyers exhaustion therefore there is a high probability that the price of the AVGO will go down in the next few days. We recommend closing to the short at 0.618 Fibonacci point. Target is shown on the chart.
NASDAQ:AVGOShort
by vf_investment
AVGO | Bearish trend started. Go Short!When it comes to AVGO , the price is likely to fall because of the weak support areas. Also the price has broken the parallel channel; that means the price’ll fall until it find a support area.So your first target would be the S1; where price got rejected because of the huge demand. If you find this technical analysis useful, please like & share our ideas with the community. What do you think is more likely to happen? Please share your thoughts in comment section. And also give a thumbs up if you find this idea helpful. Any feedback & suggestions would help in further improving the analysis. Good Luck! Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
NASDAQ:AVGOShort
by maxprofwizard