Broadcom (NASDAQ: AVGO) Just Broke Out on MASSIVE AI Momentum – Could Soar Another 24%

Broadcom Inc. (NASDAQ: AVGO) just broke out of a three-month symmetrical triangle on a powerful +6.61% single-session surge — and looks headed even higher.

As we’ll get to just ahead, the combination of a blockbuster earnings beat, a record wave of new orders anchored by major partnerships with the biggest names in AI, and a fresh technical breakout makes AVGO one of the more interesting setups on the board. Here’s what’s going on…

The Themes Behind the Move

Broadcom is a global semiconductor and infrastructure software giant that designs custom AI chips and high-speed networking silicon for the world’s largest cloud and AI companies, and also sells a sprawling enterprise software portfolio anchored by VMware.

In plain English, when Google, OpenAI, Anthropic, or Meta wants to build a next-generation AI data center powered by custom-designed chips tailored to its own workloads — rather than buying off-the-shelf GPUs from Nvidia — Broadcom is one of the very few companies in the world they turn to. Its business hinges on the pace at which hyperscalers and AI labs shift toward custom silicon (custom AI accelerators, TPUs, and specialized ASICs), the ramp of its next-generation networking hardware (Tomahawk switches, Jericho fabrics), and continued monetization of the VMware enterprise software franchise.

AVGO’s latest move reflects a powerful confluence of developments — commercial, strategic, and operational — that have come together in rapid succession to fundamentally reframe the company’s near-term growth trajectory.

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Put it all together, and AVGO is looking less like a mega-cap that has already run and more like a custom-silicon franchise with a $164 billion backlog, multi-generation partnerships locked in through 2031, and an AI revenue trajectory scaling from tens of billions toward $100 billion+.

The story is getting stronger by the week, but the chart is what could determine whether this move has more room to run in the near term. Here are the bullish technical signals traders should be watching now.

Bullish Technical Signals

#1 Symmetrical Triangle Pattern Breakout: AVGO has broken out of a symmetrical triangle roughly three months in the making on the daily chart — a pattern carved by lower highs pressing down from above (originating from the early-May spike near $495) and higher lows pressing up from below, coiling price into an increasingly narrow range. That coil represents a standoff between buyers and sellers, and standoffs typically resolve in the direction of the trend that preceded them — which here was decisively up. Today’s breakout candle did the resolving in one session: a +6.61% surge that closed at $418.16, punched cleanly through the upper trendline, and printed with a visible uptick in volume relative to the compression bars that preceded it. That volume confirmation matters — quiet breakouts routinely fail; participatory ones tend to hold. The one honest caveat: price now sits just beneath the horizontal resistance shelf at $427.47 (green dotted line), which caps the immediate move and is precisely why the buy trigger is set above that level rather than at current levels.

AVGO – Daily Chart

#2 Price Above 50-Day and 200-Day SMAs: AVGO trades above both its 50-day SMA ($394.87) and 200-day SMA ($366.52), with the 50-day sitting above the 200-day — the classic golden-cross alignment that signals intermediate-term momentum is aligned with the longer-term trend. The stacked structure (price > 50-SMA > 200-SMA) is the cleanest possible configuration for a long setup: buyers control the tape across multiple timeframes at once. Both averages now convert from prior overhead to layered dynamic support — the 50-day as first-line defense on a pullback, the 200-day as the deeper structural floor. Notably, today’s breakout candle reclaimed the 50-day with authority after price had been oscillating around it for weeks, which upgrades this from a passive “price above MA” read to an active momentum event.

#3 Bullish ADX and DI Configuration: The ADX setup is textbook trend-confirmation. First, +DI (19.95) sits above –DI (13.86), locating directional pressure squarely on the buy side. Second — and the more consequential read — ADX itself has advanced to 28.92, pushing above both DI lines and clearing the 25 threshold that separates trending from ranging markets. Because ADX measures trend strength independent of direction, an inflection through 25 from a compressed base is the indicator’s way of saying a trend isn’t just present, it’s gaining force. Read alongside the triangle breakout, that’s two independent reads pointing the same direction — structural (price) and momentum (ADX) — which is the confluence that typically precedes the more durable leg of a move rather than a one-day pop.

#4 Bullish MACD Crossover: On the daily, the MACD line (3.22) has crossed above its signal line (1.78) and the histogram has flipped positive, with both lines curling higher from near the zero line. Location matters here: crossovers near zero are the higher-quality version of this signal, because they confirm momentum is turning coincident with a structural breakout rather than reacting to an already-extended move. Mechanically, this tells us short-term momentum (12-EMA) is now accelerating faster than longer-term momentum (26-EMA) — quantifying the shift in buying pressure that price action is already making visible. Stacked against the triangle breakout and the rising ADX, all three daily reads triangulate on the same conclusion.

#5 Above Support Area with Price Above Weekly 50 and 200 SMAs: On the weekly chart, AVGO has bounced from a well-defined horizontal support zone around $400.96 (pink dotted line) — a level that previously acted as resistance during the 2025 advance and has since flipped to support, the highest-conviction category of technical level because the market has already tested and respected it in both roles. Reinforcing this, price trades well above both the 50-week SMA ($361.45) and the 200-week SMA ($193.34), with the two averages fanning out beneath price in a wide, healthy separation that signals the longer-term uptrend remains fully intact. Multi-timeframe alignment — a daily triangle breakout stacking on a weekly support reclaim — is exactly the confluence that gives a setup its edge; when daily and weekly agree, the signal carries more weight than either would alone.

AVGO – Weekly Chart

#6 Bullish Weekly RSI: The weekly RSI reads 57.58 — comfortably above the 50 midline and trending higher, with the RSI line now above its signal (57.05). This is a two-part read worth separating. Clearing and holding above 50 marks the structural handoff where buyers take momentum away from sellers on the longer timeframe; the continued upward slope confirms that momentum is expanding rather than plateauing. Just as important, at 57.58 the RSI sits well below the 70 overbought threshold, meaning there is meaningful runway before mean-reversion pressure becomes a headwind. On a weekly chart, that combination — above 50, rising, but not yet stretched — is the sweet spot for a durable move.

#7 Bullish Weekly Stochastic from Oversold: The weekly stochastic is flashing a high-conviction combination: %K (44.55) has crossed above %D (29.88), and the crossover is emerging out of oversold territory (below 20) rather than firing mid-range or overbought. Crossovers alone can be noise; crossovers from oversold on a weekly timeframe are among the more reliable signals in the momentum toolkit, because they mark the point where selling pressure has structurally exhausted and buying is stepping in on the higher timeframe. The fact that %K is still climbing rather than curling over means the signal is in its early innings, with room to run through the mid-range before overbought conditions become a concern. Alongside the weekly RSI turn and the support reclaim, this completes the weekly picture: three independent reads on the higher timeframe all confirming that momentum has shifted in favor of the bulls.

Risks to Consider

Even strong setups can fail, especially in a mega-cap AI-linked semiconductor like Broadcom. A few things could knock the stock off course:

• A breakdown back below the symmetrical triangle support level on heavy volume would invalidate the breakout thesis
• Negative company-specific news or broader market weakness — any sector rotation out of AI-linked semis, or a macro shock, would pressure the entire hardware ecosystem
• Customer concentration — a small handful of hyperscalers (Google, Anthropic, OpenAI, Meta, Apple) drive significant portions of Broadcom’s AI revenue, so any capex pullback at one of them would matter disproportionately
• Notable insider selling — over the past 90 days, Broadcom insiders have executed approximately $33.3 million in net sales across 71 transactions, with sizeable dispositions from executives including Mark David Brazeal and Henry Samueli
• Valuation and elevated expectations — the post-Q2 selloff showed the market can punish AVGO even on numbers that beat consensus but don’t dazzle relative to the most optimistic buy-side views
• Direct competition in custom ASICs from Marvell and others, plus NVIDIA’s active encroachment into networking (NVLink, Spectrum-X Ethernet, BlueField DPUs) is explicitly designed to reduce customer reliance on third-party silicon like Broadcom’s
• Supply-chain constraints — power availability, HBM supply, and wafer capacity remain gating factors that could delay hyperscaler deployments and push out revenue recognition
• Macro / AI-spend slowdown risk — while multi-year locked-in deals through 2031 provide a strong floor, any broader capex pullback across the hyperscaler group would remain a sector-level overhang

The Bottom Line

AVGO is breaking out of a three-month symmetrical triangle on the daily chart while bouncing cleanly off a resistance-turned-support level on the weekly — a dual-timeframe technical setup that historically signals the start of a sustained move higher.

The fundamental story underneath the chart is just as strong: record Q2 revenue of $22.2 billion (+48% YoY) with AI semiconductor revenue at $10.8 billion (+143% YoY), a $164 billion order backlog extending management visibility all the way out to 2028, and multi-generation AI partnerships with Google, Anthropic, and OpenAI locked in through 2031.

Combine that with multiple commercial and operational catalysts staggered through the back half of 2026 and into 2027 — Q3 earnings on September 2, the “Jalapeño” custom-silicon ramp with OpenAI, an FY2027 AI revenue trajectory scaling toward $100B+, and the additional ~3.5 GW of TPU capacity coming online for Anthropic — and AVGO looks like one of the more compelling risk-reward setups on the board right now.

If this is a trade you want to get in on, here’s how we’d play it. Because AVGO is now trading in the tight zone between a fresh triangle breakout and a horizontal resistance shelf at $427.47, we’re setting up two entry scenarios — one on a confirmed breakout above resistance, and one on a pullback to key support. Both paths imply 14%–24% potential upside with roughly 1:2 to 1:3 risk-reward.

Recommended Trade Setup

Case 1: Breakout Entry

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For a risk of approximately $34.00 per share, the target rewards are about $62.00 and $102.00 per share. That makes this roughly a 1:2 and 1:3 risk-reward trade. In other words, the setup offers nearly 2x to 3x more potential upside than downside.

Note on Trade Invalidation: This recommendation stays active as long as the technical structure holds. If AVGO drops to or below the $394.00 stop-loss before the $428.00 entry triggers, the trade is automatically void — the support underpinning the thesis would have broken, and the risk-reward setup would no longer justify entry.

Case 2: Pullback Entry

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For a risk of approximately $30.00 per share, the target rewards are about $60.00 and $90.00 per share. That makes this roughly a 1:2 and 1:3 risk-reward trade. In other words, the setup offers nearly 2x to 3x more potential upside than downside.

Happy Trading!
Tara and Greg