Broadcom Inc. (NASDAQ:AVGO) shares are trading higher during Monday’s premarket session as chip and mega-cap tech sentiment improves alongside a broad risk-on tape. Nasdaq futures are up 0.95% while S&P 500 futures have gained 0.79%.

The move comes as Broadcom continues to deepen its push into the artificial intelligence infrastructure market with new high-speed networking chips designed for AI data centers.

New Chip Announcement

Last week, Broadcom disclosed that its Tomahawk 6 networking chip has entered full production and is now shipping to customers. The company said the new chip can handle twice as much data as its previous version, helping companies build bigger and faster AI systems.

Also, Broadcom introduced a new chip, Taurus BCM83640, designed to help move large amounts of data more efficiently inside data centers that support AI.

The company said the chip can support 1.6-terabit data modules, which help data centers handle growing traffic from AI applications. These modules can move twice as much data per connection as previous designs, helping data centers increase overall network capacity.

Strong Quarterly Results

This month, Broadcom reported first-quarter revenue of $19.31 billion, beating analyst estimates of approximately $19.20 billion and adjusted EPS of $2.05, beating analyst estimates of $2.02 per share.

Broadcom expects fiscal second-quarter revenue of approximately $22 billion versus estimates of $20.68 billion. The semiconductor company anticipates second-quarter adjusted EBITDA at 68% of projected revenue.

Analyst Consensus & Recent Actions

The stock carries a Buy Rating with an average price target of $458.08. Recent analyst moves include:

  • Morgan Stanley: Overweight (Raises Target to $470.00) (Mar. 6)
  • JP Morgan: Overweight (Raises Target to $500.00) (Mar. 5)
  • Citigroup: Buy (Raises Target to $475.00) (Mar. 5)

JPMorgan analyst Harlan Sur said there is improved visibility into 2027 estimates, with Broadcom having the chance to hit over $100 billion in AI chip revenues in fiscal 2027. The analyst says Broadcom is the “top pick in the semiconductor sector.“

Technical Analysis

Broadcom is trading 1.2% below its 20-day SMA and 6.3% below its 100-day SMA, showing the near-term trend is still repairing even as the longer-term structure holds with shares 0.7% above the 200-day SMA. Shares are up 65.63% over the past 12 months, and they’re currently positioned closer to their 52-week highs than lows.

The RSI is at 44.32, which sits in neutral territory but still leans soft versus a stronger 50+ reading. Meanwhile, MACD is at 0.1104 versus a signal line at -0.9301, a bullish configuration that suggests downside momentum is easing even if price hasn’t fully followed through yet.

RSI in the 30–50 range with bullish MACD indicates momentum leaning bullish.

  • Key Resistance: $340.00
  • Key Support: $314.00

Top ETF Exposure

  • VanEck Semiconductor ETF (NASDAQ:SMH): 8.43% Weight
  • Invesco S&P 500 Momentum ETF (NYSE:SPMO): 9.75% Weight
  • Nuveen Growth Opportunities ETF (NYSE:NUGO): 8.45% Weight

Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

AVGO Price Action: Broadcom shares were up 1.03% at $325.48 during premarket trading on Monday, according to Benzinga Pro data.

Photo by PJ McDonnell via Shutterstock