Benzinga Pro data showed Broadcom shares gaining 1.14% to $329.80 in Monday's premarket session as technology stocks advanced. Nasdaq futures gained 0.85%. S&P 500 futures increased 0.53%. Investors showed renewed interest in large-cap technology companies.
Rising demand for AI infrastructure continues to benefit Broadcom's custom AI chips, advanced optics and Ethernet networking businesses. Broadcom emphasized increasing use of Ethernet in AI networks at the 2026 Open Compute Project Global Summit. More than five hyperscalers had deployed Broadcom's Ethernet scale-up technology in production. More than 10 partners were building systems using Broadcom chips. Broadcom displayed Tomahawk 6, Tomahawk Ultra, Jericho 4, Thor Ultra and Thor 2 products alongside third-generation co-packaged optics. Broadcom emphasized that the industry is adopting co-packaged optics and Optical Compute Interconnect because larger AI clusters require faster connections and more bandwidth.
A $63 billion financing package associated with Anthropic's AI infrastructure expansion could generate demand for Broadcom's custom chips and networking equipment. Deployments are expected to start in 2027. CEO Hock Tan reportedly supported demands for stronger financial guarantees and higher interest rates from banks arranging the financing. CNBC's Jim Cramer expressed confidence in Broadcom on Wednesday, calling Broadcom one of the strongest long-term performers and saying Cramer would not sell the shares.
Technical indicators continue to show pressure on Broadcom despite Monday's premarket advance. Broadcom trades 4.7% beneath the 20-day simple moving average. Broadcom trades 6.6% beneath the 50-day simple moving average. Broadcom trades more than 10% beneath both the 100-day and 200-day averages. The 20-day average is still lower than the 50-day average. The 50-day average crossed below the 200-day average in October, forming a death cross that reinforced the bearish trend.
However, momentum indicators are beginning to improve. The moving average convergence divergence indicator has crossed above the signal line, and the positive histogram suggests that selling pressure may be diminishing. Broadcom faces immediate resistance around $366.50. Broadcom has support around $308.50.
Analysts collectively assign Broadcom a Buy rating, with a mean price forecast of $523.77. Rosenblatt retained a Buy recommendation and a $600 price forecast on October 27. DA Davidson lifted Broadcom to Buy and increased the price forecast to $400 on October 27. Tigress Financial began covering Broadcom on October 22 with a Buy recommendation and a $600 forecast.
Benzinga Edge assigns Broadcom a Quality ranking of 94.75. Benzinga Edge gives Broadcom a Momentum ranking of 14.13. Benzinga Edge places Broadcom's Value ranking at 7.52. Benzinga Edge assigns Broadcom a Growth ranking of 30.68. The rankings indicate strong business fundamentals. However, valuation concerns and weak technical momentum could constrain Broadcom's near-term gains.
Broadcom Stock Rises on AI Demand and Analyst Optimism
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Summary
Broadcom (NASDAQ:AVGO) shares climbed 1.14% to $329.80 in premarket trading as on-chain data shows renewed buying interest in large-cap tech stocks. The company’s Ethernet scale-up tech is now used by over five hyperscalers amid rising AI infrastructure demand. Analysts remain bullish, averaging a $523.77 price target. On-chain analysis reveals the stock remains below key moving averages, with a bearish death cross forming in October. Momentum is improving, as the MACD crossed above the signal line.
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