What's Going On With Broadcom Stock Thursday?
Broadcom Inc. (NASDAQ: AVGO ) stock fell more than 1% Thursday as investors weighed fresh scrutiny of its data center switch business in China against broader weakness in technology stocks. The Nasdaq slipped 0.06%, while the Technology sector fell 0.36%, adding to pressure on Broadcom shares. China Targets Broadcom Dependence In State-Owned Data Centers Separately, Broadcom faces fresh scrutiny in China as authorities review the use of its networking switches in state-backed data centers, according to the Financial Times. China’s State-owned Assets Supervision and Administration Commission has surveyed state-controlled data centers about their reliance on Broadcom hardware. The review is part of Beijing’s push to increase the use of domestic chips and AI infrastructure. The survey found Broadcom switches could account for as much as 90% of deployments among state-owned companies, the report said. That could lead to informal guidance encouraging greater use of Chinese suppliers such as Huawei. The report added that the review does not appear to cover private data centers operated by companies such as ByteDance and Alibaba Group Holding Limited (NYSE: BABA ). Existing Broadcom equip
Broadcom Inc. (NASDAQ: AVGO ) stock fell more than 1% Thursday as investors weighed fresh scrutiny of its data center switch business in China against broader weakness in technology stocks. 36%, adding to pressure on Broadcom shares. China Targets Broadcom Dependence In State-Owned Data Centers Separately, Broadcom faces fresh scrutiny in China as authorities review the use of its networking switches in state-backed data centers, according to the Financial Times.
China’s State-owned Assets Supervision and Administration Commission has surveyed state-controlled data centers about their reliance on Broadcom hardware. The review is part of Beijing’s push to increase the use of domestic chips and AI infrastructure. The survey found Broadcom switches could account for as much as 90% of deployments among state-owned companies, the report said. That could lead to informal guidance encouraging greater use of Chinese suppliers such as Huawei.
The report added that the review does not appear to cover private data centers operated by companies such as ByteDance and Alibaba Group Holding Limited (NYSE: BABA ). Existing Broadcom equipment is also not expected to be removed. Technical Picture Remains Cautious Broadcom remains below several important moving averages. 95.
59. That setup could make rebounds vulnerable near those levels. The 20-day SMA remains below the 50-day SMA, signaling weaker short-term momentum. However, the 50-day average is still above the 200-day average following an April golden cross.
Momentum has improved slightly. The MACD is above its signal line, while the histogram remains positive. That suggests selling pressure may be easing. 50.
50. 96. Piper Sandler initiated coverage Sept. 10 with an Overweight rating and a $460 price forecast.
Citigroup maintained a Buy rating Sept. 4 and raised its price forecast to $515. DA Davidson maintained a Neutral rating and lowered its forecast to $350. Edge Scores Broadcom’s Edge rankings show strong quality but weaker value and growth scores.
86. The technical setup could improve if Broadcom moves back above the $368 to $377 area. 50 would put support back in focus. 53 at the time of publication Thursday, according to Pro data.
Image via Shutterstock Read Also: S&P 500 Erases Losses as US, Iran Reportedly Discuss Hormuz Deal: Stock Market Today