Broadcom Drops 11% Testing Key $355 Support

$Broadcom(AVGO)$

Broadcom Inc.(AVGO) Plummets -11.43%: Chip Giant Hits Key Support at $355-$360 Zone

Latest Close Data

AVGO closed at $359.93 on December 15th, dropping -11.43% (-$46.44) from previous close of $406.37.

Stock is now 13.2% below its 52-week high of $414.61, trading near critical support levels.

Core Market Drivers

Semiconductor sector faces continued pressure amid AI infrastructure concerns and rising interest rate expectations.

Broadcom's massive trading volume of 95.59M shares (3.05x average) indicates institutional repositioning.

Net capital outflows of $2.06B suggest profit-taking after recent AI rally peaks.

Technical Analysis

Volume surge to 95.59M shares signals major distribution.
RSI(6) crashed to 29.82 from overbought 79.15, indicating oversold conditions.
MACD shows bearish crossover with DIF at 10.18 falling below DEA at 10.63, generating negative momentum of -0.91.

Key Price Levels

Primary Support: $344.43 (December 12 low)
Strong Resistance: $380-$382 (today's high/psychological level)
Immediate Pivot: $360.43 (previous resistance now support)

Valuation Perspective

Current P/E TTM of 75.46x remains elevated vs semiconductor sector average of ~25x.

Forward P/E of 36.62x suggests premium valuation despite correction. P/S ratio of 26.61x indicates growth expectations still priced in.

Analyst Targets

41 analysts maintain average target of $436.04 (+21.1% upside). Strong institutional backing: 15 Strong Buy, 32 Buy, 2 Hold ratings. Target range spans $218-$535, reflecting varied AI infrastructure outlooks.

Weekly Outlook

Expect consolidation in $344-$380 range as oversold RSI seeks equilibrium.

Break below $344 support targets $320-$325. Reclaim of $380 resistance could spark recovery toward $400+ levels.

Risk Disclaimer

This analysis is for informational purposes only and not investment advice. Semiconductor stocks carry high volatility risks.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.