$Broadcom(AVGO)$ Breakout to $2T Market Cap incoming. Chip stocks on the verge of a bigger breakout 🚀
Broadcom has been basing just under $364 with a series of higher lows around the $309–$320 support zone. A weekly close above $364 sets up a push toward $424 (~$2T mcap), with a possibility to $530 (~$2.5T mcap).
Recent developments
AI Engines & Networking: AVGO launched next-gen Tomahawk and Jericho switches and guided to accelerating AI revenue into FY26 on new hyperscaler wins
Custom AI Chips: Broadcom confirmed a new large AI customer and growing ASIC/XPU programs tied to generative-AI build-outs.
VMware Integration: Software revenue ran about $6.8B in Q3 FY25 (43% of total)
Apple RF Deal: Multiyear, multibillion-dollar 5G RF components agreement with Apple remains in place, supporting wireless revenue
Growth outlook
AI Infrastructure “Plumbing”: Ethernet switching, custom silicon, and interconnects are core to hyperscaler AI clusters management sees continued step-ups in AI revenue into FY26.
Software + Semi Flywheel: VMware recurring software + AI semis create a diversified, high-margin mix and strong FCF to fund buybacks/dividends
Scale & Customers: Traction with top cloud providers on AI networking and bespoke accelerators provides multi-year visibility
Price Levels to Watch:
Breakout Trigger: $364
End of Year Target: $424 (~$2T)
Extreme Bull Case: $530 (~$2.5T)
Trade Idea's
AVGO 11/7 380C above 366 to see 375
AVGO 11/21 400C above 366 to see 390+ Swing
Not Financial Advice, Just My Opinion!
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