Broadcom Inc (NASDAQ:AVGO) shares fell nearly 2.67% in Friday’s session as investors took profits across AI-driven semiconductor stocks following the sector’s recent rally.

The pullback mirrors broader weakness in AI chipmakers after Micron Technology Inc. (NASDAQ:MU) delivered blowout quarterly results—adjusted EPS of $25.11 on $41.46 billion in revenue—yet still faced selling pressure as investors locked in gains.

Micron also forecast fiscal fourth-quarter adjusted EPS of about $31, with roughly $50 billion in revenue, and highlighted multi-year customer agreements designed to make revenue and earnings more predictable.

Meanwhile, S&P 500 futures were down 0.8% in premarket trading, adding to the cautious tone and weighing on mega-cap tech and semiconductor stocks.

Technical Analysis

From a longer-term lens, AVGO is still holding above its 200-day moving average ($361.17) and is about 2.6% above that trend line, but it’s also trading 8.9% below the 20-day SMA ($406.77) and 10.2% below the 50-day SMA ($412.60), which frames the current move as a pullback inside a bigger uptrend. The 20-day SMA sitting below the 50-day SMA is a bearish near-term crossover, even as the earlier golden cross (50-day above 200-day) from April keeps the longer-term structure constructive.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the September 3, 2026 (estimated) earnings report.

  • EPS Estimate: $3.16 (Up from $1.69 YoY)
  • Revenue Estimate: $29.43 Billion (Up from $15.95 Billion YoY)
  • Valuation: P/E of 63.0x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $513.68. Recent analyst moves include:

  • UBS: Buy (Lowers Forecast to $485.00) (June 4)
  • B of A Securities: Buy (Raises Forecast to $530.00) (June 4)
  • Mizuho: Outperform (Raises Forecast to $530.00) (June 4)

Top ETF Exposure

  • First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR): 9.49% Weight
  • iShares Expanded Tech Sector ETF (NYSE:IGM): 9.12% Weight
  • First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV): 9.51% Weight

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

Price Action

AVGO Stock Price Activity: Broadcom shares were down 3.39% at $366.07 during premarket trading on Friday, according to Benzinga Pro data.

Read Also: Apple Seen Best Positioned To Navigate AI Memory Crunch: Analyst

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