Broadcom's Stock Teeters on Key Support While AI Pipeline Swells to $100 Billion
Veröffentlicht: 28.06.2026 um 02:44 Uhr, Redaktion boerse-global.de
The chasm between Broadcom’s operational firepower and its stock price has rarely been wider. Shares closed Friday at €321.05, capping a weekly slide of nearly 11% that has dragged the chipmaker perilously close to a crucial technical floor. The 200-day moving average sits at €310.50, a level that stood over 27% below the record high of roughly €430 reached in early June. With the Relative Strength Index plunging toward oversold territory, investors are now watching to see whether that support line holds or crumbles.
Behind the market turbulence, the business engine is thrumming. Second-quarter revenue hit $22.2 billion, with the AI semiconductor segment alone contributing $10.8 billion — a massive year-over-year leap. Broadcom’s free cash flow topped $10 billion in the latest period, underpinning a quarterly dividend of $0.65 per share due Tuesday. More ambitiously, management expects AI-related revenue to surpass $100 billion by fiscal 2027, fueled by insatiable demand for custom accelerator chips. A cornerstone of that push is Project Jalapeño, a tailored AI processor developed with OpenAI and targeting large language models. The chip is slated to begin deployment in massive data centers by late 2026.
Yet the market wanted more. Third-quarter revenue guidance of roughly $29.4 billion merely confirmed expectations rather than raising them, a disappointment that triggered the sell-off. Compounding the caution is mounting competition at a critical customer. Broadcom currently commands an estimated 95% share of Google’s custom AI chip production, but analysts predict that figure will shrink to 65% by 2028 as the search giant diversifies its supply chain and rivals muscle in.
Should investors sell immediately? Or is it worth buying Broadcom?
On the corporate front, director Henry Samueli recently shed shares through affiliated entities — routine insider activity that nevertheless draws scrutiny during weakness. Broadcom also used the dip as an opportunity to buy back $3 billion of its own debt. Analysts, however, have not flinched. Their price targets range up to $507, and the majority still rate the stock a buy.
The week ahead is pivotal. If the €310 support holds, the combination of a near-oversold RSI and strong fundamentals could spark a recovery. A breach, on the other hand, would open the door to further losses. The next major catalyst arrives on September 3, 2026, when Broadcom reports third-quarter earnings — a report that will show whether its AI juggernaut can offset the competitive headwinds gathering at the horizon.
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