Broadcom Inc. (NASDAQ:AVGO) stock was down about 2% on Friday as investors trimmed exposure to large-cap semiconductor stocks despite a broadly positive market.

The Nasdaq slipped 0.17%, while the S&P 500 gained 0.61%. The Technology sector fell 0.2%, making it the day’s weakest-performing sector and leaving Broadcom underperforming both its peers and the broader market.

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Technical Analysis

Broadcom remains in a long-term uptrend. The stock has gained 33.25% over the past 12 months.

However, the intermediate trend has weakened. Shares are trading 3.5% below the 50-day simple moving average of $399.40 but remain 5.6% above the 200-day simple moving average of $364.94. That setup often signals consolidation after a strong rally.

Momentum also remains neutral. The relative strength index stands at 48.68, indicating neither buyers nor sellers have a clear advantage.

The 20-day moving average remains below the 50-day moving average, a bearish short-term signal. However, the 50-day moving average remains above the 200-day moving average, preserving the longer-term bullish trend.

Traders may watch resistance near $414.50. Initial support sits around $370.50.

Earnings And Analyst Outlook

The company’s next earnings report is expected on Sept. 3, 2026.

Wall Street expects earnings of $3.16 per share, up from $1.69 a year earlier. Revenue is projected to reach $29.44 billion, compared with $15.95 billion last year.

Broadcom trades at about 65.3 times earnings. Analysts maintain a consensus Buy rating with an average price forecast of $513.68. Recent analyst actions include:

  • Erste Group downgraded the stock to Hold on July 7.
  • UBS maintained a Buy rating and lowered its price forecast to $485 on June 4.
  • Bank of America Securities reiterated its Buy rating and raised its price forecast to $530 on June 4.

Benzinga Edge Rankings

Broadcom carries a Momentum score of 77.86 and a Quality score of 95.79, indicating strong long-term fundamentals.

Its Value score is 6.37, reflecting a premium valuation. The Growth score stands at 25.22, suggesting investors may remain sensitive to earnings expectations.

Overall, the stock continues to show strong momentum and quality. However, its rich valuation could lead to higher volatility during pullbacks.

ETF Exposure

Broadcom is a top holding in several technology ETFs, including:

  • First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV) – 9.21% weight.
  • Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) – 9.26% weight.
  • FT Vest Technology Dividend Target Income ETF (NASDAQ:TDVI) – 9.23% weight.

Because of Broadcom’s large weighting, fund inflows and outflows can materially affect demand for the stock.

Price Action

AVGO Stock Price Activity: Broadcom shares were down 1.90% at $385.03 at the time of publication on Friday, according to Benzinga Pro data.

Image via Shutterstock

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