Key Takeaways
- Broadcom shares surged in premarket trading Friday after the chipmaker posted better-than-expected quarterly results, boosted by strong AI demand.
- The price looks set to break out above a symmetrical triangle, signaling a continuation of the stock’s current uptrend.
- The measured move technique projects a bullish target of $349. Investors should watch crucial support levels on Broadcom’s chart around $282, $265 and $247.
Broadcom (AVGO) shares surged Friday morning after the chipmaker posted quarterly results that topped Wall Street expectations amid booming AI demand.
The company announced late Thursday that it generated $15.95 billion in revenue in its fiscal third quarter, as AI revenue jumped 63% surge to $5.2 billion. CEO Hock Tan said the chip giant expects AI semiconductor revenue could reach $6.2 billion in the current quarter as customers continue to ramp up their AI capacity. Investors also cheered news that the company had secured $10 billion in orders from a new client, which media reports have identified as OpenAI.
Broadcom shares were up 13% in recent premarket trading at $345. Through Thursday’s close, the stock had gained about 32% so far in 2025, slightly outpacing the gains of AI chip rival Nvidia (NVDA).
Below, we take a closer look at the technicals on Broadcom’s chart and identify crucial price levels that investors will likely be monitoring.
Breakout Above Symmetrical Triangle
After setting their record high last month, Broadcom shares have consolidated in a symmetrical triangle, a chart pattern that signals a continuation of the stock’s current uptrend upon a breakout. Indeed, the price looks set to open above the symmetrical triangle’s upper trendline on Friday.
It’s also worth pointing out that the stock traded more that 31 million shares on Thursday, its highest turnover since late June, indicating portfolio positioning ahead of the company’s earnings report.
Let’s apply technical analysis to project a bullish price target on Broadcom’s chart and also identify support levels worth watching during future pullbacks in the stock.
Bullish Measured Move Price Target
Investors can project a bullish price target by using the measured move technique, also known by chart watchers as the measuring principle.
When applying the analysis to Broadcom’s chart, we calculate the distance of the symmetrical triangle near its widest point and add that amount to the pattern’s upper trendline. For example, we add $40 to $309 which forecasts a target of $349, about 14% above Thursday’s closing price.
Crucial Support Levels Worth Monitoring
During pullbacks in the stock, investors should initially monitor the $282 level. The shares could attract buying interest in this area near two minor retracements that formed on the chart last month.
A close below this level could see the shares fall toward $265. This location on the chart may provide support near the June high and the closing price of a notable one-day profit-taking dip in early July.
Finally, a more significant correction in Broadcom’s share price could open the door to a retest of lower support near $247. Investors may look to place buy limit orders in this region close to a trendline that connects the December and January peaks with a period of sideways drift on the chart during May and June.
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As of the date this article was written, the author does not own any of the above securities.
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