What Is Going on With Broadcom Stock on Wednesday?

Broadcom Inc. (NASDAQ:AVGO) shares rose about 5% in early trading Wednesday, extending a similar premarket gain, as investors weighed stronger AI-infrastructure sentiment, fresh evidence of sustained compute demand and Broadcom’s growing exposure to the broader AI ecosystem.

The move came as the broader market and chip stocks climbed, with the SPDR S&P 500 ETF Trust up about 0.7% and the VanEck Semiconductor ETF up about 2.7% in early trading.

Older Nvidia GPUs Support AI Infrastructure Sentiment

Investors are also weighing fresh AI-compute demand commentary from CoreWeave Inc. (NASDAQ:CRWV).

CEO Michael Intrator said CoreWeave could generate nearly $10 billion in incremental annualized revenue by renewing contracts for older NVIDIA Corp. (NASDAQ:NVDA) GPUs through 2028 without additional hardware capital spending.

Intrator said rental prices for older Ampere and Hopper GPUs increased 30%-50% in the third quarter, while more than 300,000 GPUs are expected to become available for new contracts through 2028.

The commentary keeps attention on continued demand across the wider AI infrastructure supply chain in which Broadcom participates.

Broadcom Joins Anthropic Anchor Group

Broadcom is one of seven cornerstone investors in a separate $26 billion private placement tied to Anthropic’s planned Nasdaq listing under the symbol "ANT."

The group also includes Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), NVIDIA and other major technology companies.

Yorkville Ives analyst Dan Ives said the Anthropic offering could be "a positive step for the tech sector."

Ives said the cornerstone group may prove especially important because it places major AI chip, infrastructure and distribution partners on Anthropic’s shareholder register before its first public trade.

Firestone Adds to Broadcom Position

Aureus Asset Management co-founder and Chair Emerita Karen Firestone told CNBC that she added to Broadcom after the semiconductor selloff pushed the stock’s valuation to roughly 11 to 12 times forward earnings.

Firestone said the decline created an opportunity to increase what had been a relatively small position.

Firestone also said investors appear to favor a more "deliberate, logical, rational" pace of AI infrastructure spending as technology companies and regulators reassess new data-center development.

Technical Analysis

Broadcom trades 6.2% above its 20-day SMA of $329.10, but remains 4.4% below its 100-day SMA of $365.71 and 4.8% below its 200-day SMA of $367.12.

The 50-day SMA remains below the 200-day SMA following an October death cross.

The stock’s RSI of 49.30 sits in neutral territory.

Key Resistance: $352.50

Key Support: $343.00

Earnings and Analyst Outlook

Broadcom is scheduled to report earnings on Dec. 9.

Analysts expect EPS of $3.81, up from $1.95 a year earlier, and revenue of $34.89 billion, compared with $18.02 billion.

The stock trades at a P/E multiple of 42.3 times.

Broadcom carries a Buy consensus rating with an average price forecast of $522.92.

Recent actions include Rosenblatt maintaining Buy with a $600 forecast, DA Davidson upgrading Broadcom to Buy and raising its forecast to $400, and Tigress Financial initiating coverage with Buy and a $600 forecast.

ETF Exposure

Broadcom carries a 9.27% weighting in the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ), 9.43% in the Pacer Data and Digital Revolution ETF (NYSE:TRFK) and 9.95% in the Inspire 500 ETF (NYSE:PTL).

Those weightings leave Broadcom exposed to broader fund flows alongside company-specific developments.

Price Action

AVGO Price Action: Broadcom shares were up 5.26% at $349.45 at the time of publication Wednesday, according to Benzinga Pro data.

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