Broadcom Inc. (AVGO) stock edged higher in premarket trading Tuesday after surging nearly 9% Monday, as investors assessed the chipmaker's recent rebound and its artificial intelligence prospects.

Nasdaq futures fell about 0.5%, while S&P 500 futures gained 0.08%.

Karen Firestone Buys More Broadcom Shares

Aureus Asset Management co-founder and Chair Emerita Karen Firestone told CNBC Monday that she increased her Broadcom stake following a sell-off in semiconductor stocks.

Firestone said Broadcom's valuation had fallen to roughly 11 to 12 times forward earnings, prompting her to add to her previously small position.

She also noted that investors increasingly favor a more measured approach to artificial intelligence infrastructure spending.

That shift could reflect voluntary spending cuts by major technology companies or restrictions on new data-center construction.

Technical Indicators Signal Continued Weakness

Despite Monday's rally, Broadcom remains below its key moving averages.

The stock trades 3.2% below its 20-day simple moving average (SMA) and 7.8% below its 50-day SMA. It also sits about 13% below its 100-day and 200-day SMAs.

Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line, suggesting weak momentum.

Shares have declined 10.86% over the past year. An October death cross, when the 50-day SMA fell below the 200-day SMA, further signals bearish pressure.

Traders are watching resistance at $352.50 and support at $308.50.

December Earnings In Focus

Broadcom's next major catalyst is its scheduled Dec. 9 earnings report.

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

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

AVGO Price Action

AVGO Stock Price Activity: Broadcom shares were up 0.21% at $320.14 during premarket trading on Tuesday, according to market data.