Broadcom Surges 2.78%, Hits New High, Eyes $405 Zone

$Broadcom(AVGO)$

Broadcom Inc.(AVGO) Surged +2.78%: Semiconductor Giant Breaks New High, $405 Target Zone Activated

Latest Close Data

AVGO closed at $401.10 on December 9th, gaining +$10.86 (+2.78%) with impressive volume of 30.42M shares.

The stock hit a new 52-week high of $407.29, now trading just 1.5% below this peak and up 190% from its 52-week low of $138.10.

Core Market Drivers

AI infrastructure demand continues driving semiconductor momentum as Broadcom benefits from data center expansion.
The company's strategic positioning in AI chips and networking solutions supports sustained institutional interest.
Strong capital inflows of $3.62B total volume indicate continued institutional accumulation despite minor net outflows.

Technical Analysis

Volume surged 42% above average (1.42 ratio) signaling strong conviction.
MACD shows bullish momentum with DIF at 10.96 above DEA at 8.38, generating positive histogram of 5.17.
RSI(6) climbed to 72.45, approaching overbought territory but confirming strong upward momentum.
KDJ K-line at 77.26 suggests continued bullish pressure.

Key Price Levels

Primary Support: $345.18 (major demand zone)
Strong Resistance: $407.29 (fresh 52-week high)
Immediate Pivot: $390.24 (previous close support)

Valuation Perspective

Current P/E TTM of 102.39x reflects premium AI/semiconductor valuation, while Forward P/E of 41.56x suggests strong earnings growth expectations. P/S ratio of 31.61x aligns with high-growth tech sector premiums.

Analyst Targets

40 institutions maintain bullish outlook with average target of $405.12 (range: $218-$535). Strong consensus shows 15 Strong Buy, 32 Buy, and only 2 Hold ratings, indicating overwhelming institutional confidence.

Weekly Outlook

Expect continuation toward $420-425 resistance zone if momentum sustains above $400 pivot. Potential consolidation between $390-$410 before next breakout attempt. Volume and RSI cooling needed for sustainable advance.

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.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.