As Broadcom prepares to release its fiscal 2024 third-quarter earnings report on September 5, 2024, investor optimism is running high. Analysts expect a strong performance, projecting earnings of $1.20 per share on revenues of $12.96 billion, reflecting a 46% year-over-year growth. This anticipation has likely contributed to the recent uptick in Broadcom’s stock price.
Strong Revenue Growth from AI Chips
The demand for artificial intelligence (AI) chips has emerged as a significant driver of Broadcom’s revenue growth. In recent quarters, the company has seen a substantial increase in revenue from its AI product lines, positioning AI chips as a central element of its business strategy.
Surging Sales from AI Chips
Broadcom’s AI chip sales have been a major contributor to its overall revenue growth. In a single quarter, the company reported AI chip sales of $3.1 billion, representing a remarkable 280% year-over-year increase. This surge in AI-related revenue has prompted Broadcom to raise its fiscal 2024 sales outlook, with a large portion of this growth attributed to the AI segment.
Long-Term Revenue Potential
The long-term potential for revenue growth from AI chips is also promising. Analysts project that Broadcom’s cumulative AI revenue could reach $150 billion over the next four to five years. The company’s semiconductor revenue, primarily driven by AI demand, is expected to grow annually at a rate of 30% to 40%. This forecast suggests that AI chips are not only a current growth catalystA stock catalyst is an engine that will drive your stock either up or down. A catalyst could be news of a new contract, SEC filings, earnings and revenue beats, merger and acquisit... More but also a critical component of Broadcom’s future revenue strategy.
Strategic Position in the AI Market
Broadcom’s strategic positioning in the AI market is another key factor driving its growth. The company offers custom AI processors and networking solutions that are essential for AI model training and deployment. These products cater to the needs of major tech players such as Google and Meta, which have become significant customers for Broadcom. By securing such prominent clients, Broadcom has solidified its role in the AI ecosystem.
Importance for Investors
For investors, Broadcom represents a compelling opportunity due to its strong positioning in the rapidly growing AI market. The company’s ability to generate substantial revenue from its AI product lines, combined with its partnerships with leading technology companies, makes it an attractive option for those looking to capitalize on the AI boom. The anticipated growth in AI-driven semiconductor revenue further underscores Broadcom’s potential for sustained growth, making it a key stock to watch in the technology sector.
AVGO Technical Analysis (daily)

The chart represents the daily performance of Broadcom Ltd. (AVGO), along with various technical indicators such as volume, Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... (RSI), On-Balance VolumeThe On Balance Volume indicator (OBV) is a technical analysis tool used to measure the flow of money into and out of a security over a specified period of time. It is a cumulative ... (OBV), Stochastic RSIIn the realm of technical analysis, the Stochastic RSI (StochRSI) emerges as a powerful tool for traders seeking to navigate market dynamics with precision. Developed by Tushar S. ..., Chaikin OscillatorNamed after its creator Marc Chaikin, the Chaikin Oscillator stands as a formidable tool in the arsenal of technical analysts. This oscillator is designed to measure the accumulati..., and MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... More Oscillator.
The stock price is currently at 162.82, above the 200-day moving average (135.53) and slightly above the 50-day moving average (162.99). This positioning suggests the stock is in a generally bullish trend but has faced some recent consolidation.
Support and resistance levels:
- The nearest support level is around 160, where the stock has found buying interest multiple times.
- A stronger support level is at the 50-day moving average of 162.99. If this level breaks, the next major support would be near the 200-day moving average at 135.53.
- Resistance is observed around 165-168, where the stock has faced selling pressure on multiple occasions.
- A more significant resistance level is around 180, where the stock reached previous highs in recent months.
Trend Analysis:
- The overall trend is mildly bullish as the stock remains above the 200-day moving average, which acts as a long-term support.
- The RSI is at 54.15, indicating a neutral to slightly bullish momentum. It is not in the overbought or oversold zone, suggesting there is room for movement in either direction.
- The On-Balance Volume (OBV) is gradually rising, which supports the bullish trend, indicating that accumulation is happening.
- The Stochastic RSI is at 0.735, near the upper range but not in the overbought territory. This suggests the stock has upward momentum but may face some resistance soon.
- The Chaikin Oscillator is positive at 3.08M, indicating buying pressure is stronger than selling pressure.
- The MACD shows a bullish crossover, with the MACD line (8.07) above the signal line (5.24), and the histogram in positive territory, confirming the potential for further upward movement.
Future Trend Indication:
- The overall indications suggest a continuation of the bullish trend in the short to medium term, especially if the price can hold above the 50-day moving average.
- There may be short-term volatility as the price approaches resistance levels around 165-168. A breakout above these resistance levels could propel the stock higher toward the 180 level.
- If the stock fails to maintain its position above the 50-day moving average, a correction towards the 200-day moving average (135.53) is possible.
- Monitoring the volume, RSI, and MACD for confirmation of any breakouts or breakdowns is crucial for future trend prediction.
Time-Frame Signals:
3-Month: Buy, as the bullish trend may continue if the stock stays above the 50-day moving average.
6-Month: Hold, considering potential resistance around the 165-168 range.
12-Month: Hold, unless a clear breakout above 180 occurs, indicating a stronger long-term uptrend.
AVGO Technical Analysis (weekly)

The chart represents the weekly performance of Broadcom Ltd. (AVGO) from October 2022 to August 2024, along with volume and On-Balance Volume (OBV) indicators. The price is currently at 162.82, showing a strong upward trend over the past two years.
Support and resistance levels:
- The nearest support level is around 155, which has acted as a price floor in recent weeks.
- A stronger support level is around 125.17, corresponding to the Anchored Volume Weighted Average Price (VWAP) since August 2023, which indicates the average price at which most trading activity has occurred. This level aligns with significant price consolidation from earlier periods.
- Resistance is observed around 180, where the stock has reached previous highs and faced selling pressure. This level represents a key barrier to further upward movement.
- A break above 180 could lead to the next resistance around 200, a round number psychological level.
Trend Analysis:
- The overall trend on the weekly chart is strongly bullish, as evidenced by a consistent series of higher highs and higher lows since October 2022.
- The stock has maintained its position well above the VWAP of 125.17, suggesting a strong accumulation phase.
- Volume appears to have decreased recently, but the OBV remains relatively high at 1.78 billion, indicating that the buying pressure has been dominant over the past year.
- The decrease in volume suggests a period of consolidation after a significant upward movement, with the stock holding its gains.
- The stock’s ability to remain above the VWAP and its historical trend support level indicates that the long-term trend remains bullish, but some caution is warranted due to reduced trading volume and proximity to resistance.
Future Trend Indication:
- The chart suggests that Broadcom Ltd. could continue its bullish trend over the longer term if it maintains its position above the 155 support level. A break above the 180 resistance level could signal a continuation of the uptrend toward 200.
- However, if the stock fails to hold above 155, a deeper correction could bring it down towards the VWAP level at 125.17, which serves as a strong support.
- Investors should watch for a breakout above 180 for confirmation of a continued bullish trend or signs of weakening if the price falls below 155.
Time-Frame Signals:
1-Year: Hold, as the stock remains in an uptrend but is nearing resistance. Wait for a breakout above 180 or a pullback to a support level.
2-Year: Buy, based on the strong upward trend and the likelihood of a continuation if the stock stays above 155.
3-Year: Buy, as the overall trend is bullish and the stock appears to be in a strong accumulation phase with a potential for further gains.
Past performance is not an indication of future results. This analysis should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡
Looking Ahead
The upcoming earnings report is expected to reinforce Broadcom’s role as a leader in the AI market. With a robust growth trajectory driven by AI chip demand and strategic partnerships with major tech companies, Broadcom is well-positioned for both short-term gains and long-term success. For investors, this positions Broadcom as an important company to follow, offering significant potential for growth in the evolving AI landscape.
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This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to buy any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above content might not be suitable for your particular circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor.