Broadcom shares may fall sharply toward the $300 level by late August or early September 2026 if the stock closes decisively below its 200-day moving average, according to recent technical analysis. This potential breakdown would accelerate selling pressure and push the price to a long-term support zone.
Technical Indicators Point to Bearish Trend
The stock, currently trading at around $370, has faced resistance from its 50-day moving average and failed to recover after being rejected from a long-term ascending trendline in early June. Despite finding short-term support at the 200-day moving average, the overall pattern remains bearish.
The Relative Strength Index (RSI) is neutral and has not shown signs of sustained recovery, suggesting buyers are not yet active enough to reverse the downward trend. The next critical signal for traders will be a confirmed close below the 200-day moving average, which could lead to a test of the multi-month support zone near $285-$300.
Strong Fundamentals Contrast With Technical Weakness
Despite the bearish technical outlook, Broadcom’s business performance remains solid. The semiconductor and infrastructure software company posted record fiscal Q2 2026 revenue of $22.19 billion, a 48% increase year over year.
AI semiconductor sales surged an impressive 143% to $10.8 billion, contributing significantly to higher earnings and profitability that beat expectations. Broadcom’s demand strength in custom AI accelerators, networking hardware, and VMware software positions it among the leading beneficiaries of ongoing AI infrastructure investments.
Investment information provided is for informational purposes only and does not constitute financial advice.
