Broadcom shares fell sharply on Friday, one day after delivering results that were largely in line with Wall Street estimates. The company’s shares hit a fresh record high earlier this week, driven by expectations of robust revenue growth due to surging demand for chips powering generative AI technology.
CEO Hock Tan stated during the earnings call that chip demand may accelerate during the second half of 2026 due to strong inference demand. However, investors seemed to have missed the mark, driving shares down 5% to around $247.
Despite this, Broadcom’s shares are still up about 6% since the start of the year, slightly outpacing the performance of the S&P 500 index. Investors should monitor key support levels, including $235 and $200, as well as an important overhead area near $265, during recovery efforts in the stock.
Profit-taking crept into Broadcom’s shares on Thursday, with the highest volume in around two months. The relative strength index recently climbed above 80, a reading that coincided with major tops in the stock last year. The company’s shares have trended sharply higher within a rising wedge pattern, but this selling may be driven by profit-taking and missed expectations.
Key support levels to watch include $235, which has confluenced with the lower trendline of the rising wedge pattern and notable peaks between December and January. Further selling could trigger a drop to the psychological $200 area, where investors should look for dip buying opportunities near the February countertrend peak. The important overhead area worth monitoring is near $265, which may influence recovery efforts in the stock.
Source: https://www.investopedia.com/watch-these-broadcom-stock-price-levels-after-post-earnings-slide-11749568