Chip Giant Broadcom Holds Key Support Levels

$Broadcom(AVGO)$

Broadcom Inc.(AVGO) Dips -1.60%: Chip Giant Tests Support at $406, AI Infrastructure Thesis Intact

Latest Close Data

AVGO closed at $406.37 on Dec 12, down -1.60% (-$6.60). Stock trading 1.99% below its 52-week high of $414.61, maintaining strong position above $345 support level.

Core Market Drivers

Semiconductor sector faces mixed signals amid AI infrastructure demand sustainability concerns.

Broadcom's custom AI chip dominance remains solid despite broader tech rotation.

High volume ratio of 1.83x suggests institutional position adjustments rather than fundamental weakness.

Technical Analysis

Volume surged to 46.4M shares (1.83x average).
MACD shows bullish divergence with DIF at 13.77 vs DEA at 10.75, signaling momentum remains positive.
RSI(12) at 64.83 indicates healthy pullback from overbought territory.
KDJ shows K-line at 85.78, suggesting near-term consolidation.

Key Price Levels

Primary Support: $394.19 (session low)
Strong Resistance: $413.13 (previous pivot)
Immediate Pivot: $409.30 (session high)

Valuation Perspective

Trading at P/E TTM of 103.73x vs Forward P/E of 43.97x, indicating strong earnings growth expectations. P/S ratio of 32.02x reflects premium AI infrastructure positioning.

Analyst Targets

40 institutions maintain bullish outlook with average target of $407.37. Strong Buy consensus: 15 Strong Buy, 32 Buy, 2 Hold ratings support upward trajectory.

Weekly Outlook

Expect consolidation in $394-$413 range before next breakout attempt. Break above $415 targets $430-$435 zone. Support failure below $390 could test $375 levels.

Risk Disclaimer

This analysis is for informational purposes only and not investment advice. Past performance doesn't guarantee future results. Please conduct your own research before making investment decisions.

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