Broadcom Inc. (AVGO) shares climbed nearly 3% on Wednesday as investors rotated back into semiconductor and mega-cap technology stocks. The broader market also traded higher, with the Nasdaq gaining 0.54% and the S&P 500 adding 0.13%.

The rally follows a recent pullback that pushed the stock below key short-term moving averages. Wednesday's gains suggest traders are trying to rebuild bullish momentum. Broadcom also outperformed the broader market, a pattern often seen when investors rotate into higher-beta tech names during Nasdaq-led sessions.

JPMorgan Sees AI Revenue Visibility Through 2031

Recently, JPMorgan dismissed market speculation that Alphabet Inc.'s (GOOGL) Google's next-generation TPU v9 chip had been delayed or canceled, reinforcing confidence in Broadcom's long-term artificial intelligence growth prospects.

JPMorgan said concerns over delays to Google's TPU v9 program are unfounded, noting that Broadcom remains on track to begin mass production in 2028. According to a JPMorgan research note cited by Futunn News, Google signed a five-year agreement with Broadcom in March covering the next four generations of its Tensor Processing Units. The deal gives Broadcom AI revenue visibility through 2031.

The bank also said concerns about Google's in-house chip development efforts are overstated. It estimates Google's internal chip team trails Broadcom by at least 18 months, limiting the competitive threat in the near term. JPMorgan expects Broadcom's AI revenue to increase two to 2.5 times in 2027 and double again in 2028 as hyperscale customers continue shifting toward custom AI chips.

The stock carries a Buy rating with an average price forecast of $513.68. Recent analyst actions include UBS lowering its price forecast to $485 while maintaining Buy, and Bank of America Securities and Mizuho raising their price forecasts to $530 on June 4.

Technical Picture Remains Constructive

Broadcom remains in a long-term uptrend despite recent weakness. The stock trades about 6% above its 100-day simple moving average of $366.95 and roughly 8% above its 200-day simple moving average of $358.91. A golden cross formed in April, reinforcing the longer-term bullish trend.

In the near term, however, the stock remains below key resistance levels. It trades about 6.3% below its 20-day moving average of $414.97 and nearly 5% below its 50-day moving average of $409.28. Momentum indicators also remain cautious. The moving average convergence divergence (MACD) indicator sits below its signal line, suggesting buying momentum has yet to fully recover.

Traders are watching resistance near $429.50, while support around $370.50 aligns with the 100-day and 200-day moving averages.

ETF Exposure

Broadcom is among the largest holdings in several technology-focused exchange-traded funds, including:

• First Trust NASDAQ Cybersecurity ETF (CIBR): 9.49% weighting
• iShares Expanded Tech Sector ETF (IGM): 9.12% weighting
• First Trust NASDAQ Technology Dividend Index Fund (TDIV): 9.51% weighting

Because Broadcom carries significant weight in these funds, ETF inflows and outflows can influence demand for the stock.

Price Action

AVGO Stock Price Activity: Broadcom shares were up 2.53% at $386.23 at the time of publication on Wednesday, according to market data.