Broadcom Stock (AVGO) Dips To Test $400 Support Ahead of Earnings

Broadcom's stock price (NASDAQ:AVGO) has pulled back to $403 by mid afternoon, 2.4% lower on the day, having moved off the intraday low of $394.19. The stock has found support willing around $400, with all eyes on AVGO ahead of earnings, due after market close.

The market is keenly awaiting Broadcom's earnings, perhaps even moreso to stabilise the Nasdaq after today's Oracle induced earnings drop. Analysts expect Broadcom to deliver an EPS of $1.87 on the quarter, a healthy rise on the $1.42 from this time last year.

Revenue is expected to come in at $17.46 billion, for a 24.23% sales growth rate. All the talk of TPUs, and threats to Nvidia's GPU's have given Broadcom a leg up in recent weeks. Whilst Broadcom's stock has added 14.77% over the past month of trading, Nvidia has pulled back 7.31% on the period, for a more than 20% swing.

Over the past year, AVGO has demonstrated significant growth, up 120% on the year. The stock's performance has been largely bullish, supported by its strong position in the semiconductor industry, with recent partnerships accelerating sentiment. Its current price remains above both its 50-day ($356.87) and 200-day ($275.59) simple moving averages, confirming a positive trend despite today's pullback.

Recent developments have painted a mixed picture for Broadcom. The company secured a landmark $10 billion custom AI chip order from OpenAI, slated for deliveries starting in 2026. This deal, coupled with existing contracts with Alphabet and Meta Platforms, has boosted Broadcom's AI chip backlog to exceed $100 billion. This positions Broadcom as a major player in the AI chip market, directly challenging Nvidia’s dominance.

Broadcom's record third-quarter 2025 results, featuring $16 billion in revenue (a 22% year-over-year increase) and adjusted EPS of $1.69, further underscore its strong financial health. The company's performance has been significantly fueled by robust AI-driven demand, showcasing its ability to capitalize on emerging technology trends.

A recent multi-year agreement with Lloyds Banking Group aims to enhance the bank's digital infrastructure using Broadcom's software portfolio, including VMware Cloud Foundation and mainframe solutions. This partnership highlights Broadcom's expanding reach beyond semiconductors into software and digital solutions.

Options trading data suggests an implied volatility of 49.40%, with an expected price movement of approximately $23.98 (5.81%) following the earnings release.

The combination of strong AI chip demand, record earnings, and strategic partnerships positions Broadcom favorably for long-term growth. However, macroeconomic uncertainties, competitive pressures, and insider selling activity warrant caution.