{"id":5383,"date":"2026-07-09T15:18:21","date_gmt":"2026-07-09T15:18:21","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5383"},"modified":"2026-07-09T15:18:21","modified_gmt":"2026-07-09T15:18:21","slug":"broadcom-stock-is-in-a-local-bear-market-will-it-retest-its-record-high","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5383","title":{"rendered":"Broadcom stock is in a local bear market: will it retest its record high?"},"content":{"rendered":"
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Broadcom stock price rose by 5% on Wednesday after extending its relationship with Apple. AVGO rose to $395, a 10% increase from its lowest level this month. It remains in a local bear market after falling by 20% from its highest point this year. So, will it rebound and retest its all-time high?<\/p>\n

Broadcom expands its relationship with Apple<\/h2>\n

Broadcom, a top company valued at over $1.85 trillion, has made several deals in the past few months, helping it become one of the biggest beneficiaries of the artificial intelligence boom. <\/p>\n

In a statement on Tuesday, Apple said that it was expanding its partnership with Broadcom<\/a> in a multi-year deal valued at over $30 billion. As a result, the partnership will lead to a boost in production of over 15 billion US-made chips. It will also see Broadcom expand its facility in Colorado. <\/p>\n

Broadcom has also made a major deal with OpenAI<\/a>, the creator of ChatGPT. This deal has seen OpenAI design its own custom chips, with Broadcom being the manufacturer. They recently showcased these chips, which are now in testing. <\/p>\n

This deal is expected to be highly profitable for Broadcom, with Blayne Curtis, a Jefferies analyst, predicting<\/a> that it will make it over $50 billion by 2028.<\/p>\n

Broadcom also has extended its deal with Meta Platforms and Alphabet, the parent company of Google.<\/p>\n

These deals have boosted Broadcom\u2019s business in the past 12 months. Its recent results showed that its revenue jumped by 48% in the second quarter to over $22.1 billion. Its closely-watched AI semiconductor revenue jumped by 143% YoY to $10.8 billion, and is being driven by the rising need for custom AI accelerators and AI networking solutions.<\/p>\n

Wall Street expects Broadcom\u2019s growth to continue<\/h2>\n

Analysts are highly optimistic about its future growth. Yahoo Finance data shows that the average estimate is that its revenue will jump by 84% in the third quarter to $29.4 billion. Its fourth fiscal quarter\u2019s revenue is then expected to rise by 93% to $34.9 billion, bringing its annual figure to $106 billion. Its next fiscal year revenue is expected to grow to $172 billion.<\/p>\n

These are strong numbers for a company that was started in 1961 and is a sign that it has continued to transform itself over time. This transformation has been through organic and inorganic means. It acquired VMware in a $61 billion deal, CA Technologies and Symantec Enterprise Security in deals worth $19 billion and $10.7 billion, respectively. Its other top buyouts were LSI Corporation and Brocade Communications.<\/p>\n

Still, there are some concerns about the company\u2019s valuation, with the forward price-to-earnings ratio being 40, higher than other companies, including Nvidia and Micron.<\/p>\n

On the positive side, the company\u2019s Rule-of-40 metric is encouraging, with its net profit margin being 39% and its revenue growth being 32%. This gives it a multiple of 71%. <\/p>\n

Broadcom stock price analysis<\/h2>\n
<\/figure>\n

Broadcom stock chart | Source: TradingView<\/em><\/p>\n

AVGO stock has been in a bull run in the past few months, rising from $138 in April last year to a record high of $495. This rally stalled after its recent earnings, with the stock falling to a low of $356. <\/p>\n

It has moved slightly below the key support level of $414, its highest swing in December last year. On the positive side, it has found substantial support above the 200-day moving average.<\/p>\n

Therefore, the outlook is bullish as long as it is above this moving average. If this happens, the stock may resume rising, potentially to the year-to-date high of $495. <\/p>\n

The post Broadcom stock is in a local bear market: will it retest its record high?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadcom stock price rose by 5% on Wednesday after extending its relationship with Apple. AVGO rose to $395, a 10% increase from its lowest level this month. It remains in a local bear market after falling by 20% from its highest point this year. So, will it rebound and retest its all-time high?Broadcom expands its…<\/p>\n","protected":false},"author":1,"featured_media":5384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5383"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5384"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}