Broadcom Inc. (NASDAQ: AVGO) stock rose more than 1% in Monday's premarket trading as technology stocks gained ground. Nasdaq futures climbed 0.85%, while S&P 500 futures advanced 0.53%.

The gains came amid renewed investor interest in large-cap technology stocks, although Broadcom remains below key moving averages.

AI Infrastructure Remains the Core Growth Story

Broadcom continues to benefit from growing demand for artificial intelligence infrastructure, including custom AI chips, advanced optics and Ethernet networking.

At the 2026 Open Compute Project Global Summit, Broadcom highlighted growing adoption of Ethernet technology for AI networks.

More than five hyperscalers were using its Ethernet scale-up technology in production, while over 10 partners were developing systems based on Broadcom chips.

The company also showcased its Tomahawk 6, Tomahawk Ultra, Jericho 4, Thor Ultra and Thor 2 products, along with third-generation co-packaged optics.

Broadcom highlighted the industry's shift toward co-packaged optics and Optical Compute Interconnect as larger AI clusters demand faster connections and greater bandwidth.

Meanwhile, a $63 billion financing package tied to Anthropic's AI infrastructure expansion could support demand for Broadcom's custom chips and networking equipment. Deployments are expected to begin in 2027.

CEO Hock Tan reportedly backed stronger financial guarantees and higher interest rates sought by banks arranging the financing.

CNBC's Jim Cramer also expressed confidence in Broadcom Wednesday, describing it as one of the strongest long-term performers and saying he would not sell the stock.

Technical Analysis

Broadcom remains under technical pressure despite Monday's premarket gains.

The stock trades 4.7% below its 20-day simple moving average (SMA), 6.6% below its 50-day SMA and more than 10% below its 100-day and 200-day averages.

Its 20-day average remains below the 50-day average. A death cross formed in October, when the 50-day average fell below the 200-day average, reinforcing the bearish trend.

However, momentum shows early signs of improvement. The moving average convergence divergence (MACD) indicator has moved above its signal line, with a positive histogram suggesting selling pressure may be easing.

Immediate resistance stands near $366.50, while support sits around $308.50.

Analyst Outlook

Broadcom carries a consensus Buy rating and an average analyst price forecast of $523.77.

Rosenblatt maintained its Buy rating with a $600 price forecast on Oct. 27. DA Davidson upgraded Broadcom to Buy and raised its forecast to $400 the same day.

Tigress Financial initiated coverage with a Buy rating and a $600 forecast on Oct. 22.

Broadcom's MarketDash Edge rankings show strong Quality at 94.75, but weaker Momentum at 14.13 and Value at 7.52. Growth stands at 30.68.

The rankings suggest that Broadcom's business fundamentals remain strong, although valuation concerns and weak technical momentum could limit near-term gains.

AVGO Stock Price Activity

Broadcom shares rose 1.14% to $329.80 in Monday's premarket trading, according to market data.