Broadcom Breaks Higher as AI Momentum Builds
Broadcom has delivered a strong performance over the past 12 months, with the share price up close to 50%. Since peaking on 9 December, however, AVGO has undergone a meaningful pullback.
From a technical perspective, that retracement has formed a bullish wedge, a classic continuation pattern. Encouragingly, the price has now broken out to the upside, short-term EMAs have turned supportive, and RSI has moved back above 50. As long as RSI holds above this level, momentum remains constructive and should continue to underpin price action. A sustained move back below 50 would weaken that outlook.
Classical charting theory suggests that flags tend to "fly at half mast", implying a measured move higher. On a logarithmic basis, this points to an upside target around $475.
Fundamentally, Broadcom is gaining traction in AI infrastructure as demand accelerates for its tensor processing units, which offer a lower-cost alternative to Nvidia's GPUs.
UBS estimates Broadcom will ship around 3.7 million TPUs this year, rising to more than five million by 2027. On these assumptions, AI-related revenue could reach roughly $60bn in 2026 and potentially exceed $100bn in 2027.
TPUs are materially cheaper than Nvidia's latest chips and are particularly well suited to inference workloads, which are expected to account for the bulk of AI demand over the next five years. While Nvidia retains a clear advantage in training and is working to defend its position in inference, Broadcom's expanding role in AI infrastructure provides solid fundamental support for the $475 technical target.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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