What Is Going on With Broadcom Stock on Tuesday?
Broadcom Inc. (NASDAQ: AVGO ) stock gained by more than 4% on Tuesday after Palantir Technologies Inc (NASDAQ: PLTR ) delivered a strong earnings beat and raised its guidance. Palantir’s results sparked a broader relief rally across major artificial intelligence and semiconductor stocks, lifting Broadcom along with the wider AI chip trade. The Nasdaq is up 2.41% while the S&P 500 has gained 1.21%. Palantir reported second-quarter revenue of $1.94 billion, topping analyst estimates of $1.80 billion. Adjusted earnings came in at 41 cents per share, ahead of the consensus estimate of 35 cents. Palantir expects third-quarter revenue of $2.16 billion to $2.164 billion, above estimates of $1.997 billion. The company also raised its full-year 2026 revenue guidance from a range of $7.65 billion to $7.66 billion to a new range of $8.15 billion to $8.16 billion versus estimates of $7.69 billion...
Broadcom Inc. (NASDAQ: AVGO ) stock gained by more than 4% on Tuesday after Palantir Technologies Inc (NASDAQ: PLTR ) delivered a strong earnings beat and raised its guidance.
Palantir’s results sparked a broader relief rally across major artificial intelligence and semiconductor stocks, lifting Broadcom along with the wider AI chip trade.
The Nasdaq is up 2.41% while the S&P 500 has gained 1.21%.
Palantir reported second-quarter revenue of $1.94 billion, topping analyst estimates of $1.80 billion.
Adjusted earnings came in at 41 cents per share, ahead of the consensus estimate of 35 cents.
Palantir expects third-quarter revenue of $2.16 billion to $2.164 billion, above estimates of $1.997 billion.
The company also raised its full-year 2026 revenue guidance from a range of $7.65 billion to $7.66 billion to a new range of $8.15 billion to $8.16 billion versus estimates of $7.69 billion.
Technical Analysis From a trend perspective, AVGO is back in a constructive posture: it’s trading about 6% above the 20-day SMA ($387.66) and roughly 12% above the 200-day SMA ($366.48), keeping the longer-term uptrend intact.
The stock is also above its 50-day SMA ($394.73) and 100-day SMA ($385.10), which typically supports "buy-the-dip" behavior as long as those averages hold on pullbacks.
Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the September 2, 2026 (confirmed) earnings report.
EPS Estimate: $3.16 (Up from $1.69 YoY) Revenue Estimate: $29.44 Billion (Up from $15.95 Billion YoY) Valuation: P/E of 65.3x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $513.68.
Recent analyst moves include: Erste Group: Downgraded to Hold (July 7) UBS: Buy (Lowers Forecast to $485.00) (June 4) B of A Securities: Buy (Raises Forecast to $530.00) (June 4) Top ETF Exposure Vanguard High Dividend Yield ETF (NYSE: VYM ): 8.48% Weight Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ ): 7.88% Weight FT Vest Technology Dividend Target Income ETF (NASDAQ: TDVI ): 7.84% Weight Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
AVGO Price Action: Broadcom shares were up 6.52% at $417.80 at the time of publication on Tuesday, according to Pro data.
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