Broadcom Inc. (NASDAQ:AVGO) stock fell on Tuesday as investors continued to move away from growth-oriented technology stocks amid a broader market sell-off.
Last week, the stock came under pressure after Broadcom reported strong fiscal second-quarter results but maintained, rather than increased, its forecast for more than $100 billion in AI semiconductor revenue by fiscal 2027. Management’s third-quarter AI revenue outlook was also largely in line with Wall Street’s already elevated expectations.
The unchanged outlook triggered profit-taking across AI-related stocks, as investors who had bid shares to premium valuations looked for stronger signs of accelerating growth.
Defensive Rotation Weighs on Semiconductors
Tuesday’s decline appeared to be driven more by market sentiment. The Nasdaq Composite dropped 2.06%, while the S&P 500 lost 0.84%. Although most sectors traded higher, investors favored defensive areas such as real estate and healthcare over technology.
Market breadth remained positive, with nine of 11 sectors advancing. However, leadership came from defensive groups rather than high-growth technology stocks. The Real Estate Select Sector SPDR Fund gained 2.41%, while the Health Care Select Sector SPDR Fund rose 1.33%.
That shift in leadership weighed on semiconductor stocks, including Broadcom, which traded largely in line with weakness across the Nasdaq.
Technical Picture Remains Constructive
Despite the recent pullback, Broadcom continues to hold a favorable long-term trend. The stock is trading 9.9% below its 20-day simple moving average and 3.8% below its 50-day average. However, it remains 5.7% above its 100-day average and 8.1% above its 200-day average.
Momentum indicators have weakened. The moving average convergence divergence, or MACD, remains below its signal line, suggesting buying momentum has cooled following the stock’s recent rally.
Broadcom’s longer-term setup remains supported by a golden cross that formed in April, when the 50-day moving average moved above the 200-day moving average. However, after setting a new 52-week high in June, the stock appears to be consolidating.
Key resistance stands near $429.50, close to the 20-day moving average. Key support is around $324.50, where buyers previously entered the stock.
Broadcom Analyst Outlook
Analysts remain broadly bullish. The consensus rating is Buy, with an average price forecast of $513.68. Recent research notes include:
- UBS maintained a Buy rating and lowered its price forecast to $485 on June 4.
- Bank of America reiterated Buy and raised its price forecast to $530 on June 4.
- Mizuho maintained an Outperform rating and raised its price forecast to $530 on June 4.
Broadcom, Apollo, Blackstone Launch AI Infrastructure Platform
Separately, Broadcom, Apollo Global Management Inc. (NYSE:APO), and Blackstone Inc. (NYSE:BX) on Tuesday launched the AI XPV Platform, a new AI infrastructure initiative designed to support more than 20 gigawatts of compute capacity through 2028.
The platform debuts with a $35 billion funding tranche led by Apollo and backed by Blackstone to support Anthropic’s planned expansion of more than 1 gigawatt of AI compute infrastructure at Fluidstack-operated sites beginning in mid-2026.
The companies said the platform will combine Broadcom’s custom AI chips and networking technology with large-scale capital to accelerate AI training and inference deployments while lowering costs and power consumption.
Price Action
AVGO Stock Price Activity: Broadcom shares were down 3.17% at $384.02 at the time of publication on Tuesday, according to Benzinga Pro data.
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