Broadcom stock is showing strength after the break
Broadcom
Broadcom
AVGO
4.27 dollars
1.87%
35%
IBD stock analysis
- Store with 21-day support after a large income gap
- AVGO is trying to break the downtrend near 237.
- The amount going above average
Industry group rating
An emerging design
Double bottom
* Not real time data. All information displayed is as of 11:25AM EST on 01/16/2025.
Broadcom (AVGO) is the IBD Stock of the Day as shares of the iconic chipmaker and infrastructure software provider show strength in a turbulent market.
In midday trading on the stock market today, Broadcom stock rose more than 2% to 233.73. Earlier in the session, the chipmaker jumped as much as 4.6% to 238.60 after contracting Taiwan Semiconductor Manufacturing (TSM) presented a quarterly report.
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AVGO stock is trying to break the short low line near 237, as Analysis of IBD. On a positive note, it found support at the 21-day moving average.
On December 13, Broadcom stock broke a double-bottom base with a buy point of 185.05. His view matches analysts’ expectations.
On Wednesday, investment bank Oppenheimer named Broadcom as its top chip stock for 2025. Other “bests” included. Marvel technology (MRVL), Monolithic power systems (MPWR) and Nivea (NVDA).
According to Oppenheimer analyst Rick Shafer, the top four stock picks all moved into the artificial intelligence megatrend.
“AI-related stocks led the SOX (Philadelphia Semiconductor Index) in ’23 and ’24,” Shaffer said in a client note. “25 As a CSP (cloud service provider) we see capex continuing to increase and enterprises working to monetize their AI strategies.”
Broadcom makes custom AI server chips Alphabet()GOOGLE) Google, Facebook parent Meta forums (META) and TikTok owner ByteDance. He is also designing OpenAI and AI inference chips for ChatGPT creator. Apple (APL), Shaffer said. Revenue from the two new customers should contribute to the top line by 2026, he said.
Broadcom stock is on four IBD lists.
“AVGO is the largest custom ASIC (application-specific integrated circuit) design house and the second-largest manufacturer of AI accelerators behind Nvidia,” Shaffer said.
Broadcom said it will benefit from sales of network chips for AI systems.
On Monday, Jefferies analyst Blaine Curtis named Broadcom stock a “top pick” among semiconductor stocks for 2025. In a client note, Curtis said he likes AVGO stock because of “increasing demand for custom silicon.”
Broadcom stock is on four IBD lists: IBD 50, Big cap 20SwingTrader and Tech Leaders.
Patrick Seitz at X, formerly of Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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