Latest Update โ September 18, 2026
AVGO recovery pushes higher as the roadmap shifts back toward the $360s
What matters most
- AVGO closed Friday at $357.61, up 2.97%, after reaching an intraday high of $363.25.
- The recovery carried AVGO back above the prior $346.59, $351.15 and $353.09โ$356.60 areas from the September 15 roadmap.
- The first resistance zone is now $357.71โ$358.78. AVGO closed just below it Friday.
- Above that zone, $363.25 and $366.78 are the next upside tests, followed by major resistance at $370.28โ$372.70.
- If momentum fades, $354.95 is the first support to watch, with $352.51 becoming more important below it. If $352.51 breaks and begins acting as resistance, $347.64โ$349.95 becomes the next deeper support zone.
What happened?
Broadcom's recovery continued into the end of the week. After closing at $339.27 Tuesday, AVGO climbed for three straight sessions and finished Friday at $357.61, up 2.97% on the day. The stock reached an intraday high of $363.25 before giving back part of the move into the close.
More importantly for the roadmap, AVGO reclaimed the $346.59, $351.15 and $353.09โ$356.60 areas highlighted in the September 15 update. With those levels recovered, the immediate technical focus shifts higher.
Latest News
AI demand remains the central growth story. CEO Hock Tan reiterated this week that demand for AI compute infrastructure remains very strong, particularly for inference. Broadcom has outlined approximately $115 billion of AI semiconductor revenue for fiscal 2027 and roughly $230 billion for fiscal 2028.
Tan also said the bigger constraint on that growth may increasingly be physical infrastructure rather than customer demand. Power availability, transformers, permitting and data-center construction can all limit how quickly customers add capacity. That distinction matters: the issue Broadcom is highlighting is how quickly AI infrastructure can be built, not a lack of demand for the compute itself.
Wall Street Reaction
Analyst sentiment has remained constructive through the recent volatility. Bernstein reiterated its Buy rating on Broadcom on September 14 and kept its $575 price target. CITIC Securities had upgraded the shares to Buy on September 8 with a $525 target.
Those longer-term targets do not change the near-term setup. AVGO still has several resistance levels directly overhead, so price needs to confirm that buyers can keep control after Friday's rebound.
Key Levels I'm Watching
Dagger Trading Take
The roadmap has shifted higher, but AVGO still has work to do.
AVGO has made meaningful progress since the September 15 update, reclaiming several levels that had been acting as resistance. The first battle now is $357.71โ$358.78. If buyers can push through that area and turn it into support, $363.25 comes back into focus.
Above there, $366.78 is the next test, followed by the larger $370.28โ$372.70 resistance zone. If momentum fades instead, I'm watching $354.95 first and $352.51 below it. If $352.51 breaks and begins acting as resistance, the next deeper support zone is $347.64โ$349.95.
The levels are moving higher, but the approach stays the same: let price confirm the next move. Momentum is key.
Sources & notes for this update
- September 18, 2026 Benzinga Newswire coverage of Hock Tan's AI demand comments, fiscal 2027 and fiscal 2028 AI semiconductor outlook, and infrastructure constraints.
- September 14, 2026 Bernstein analyst update maintaining a Buy rating and $575 price target; September 8 CITIC Securities upgrade to Buy with a $525 target.
- September 18, 2026 price action and technical levels are based on Dagger Trading's Thinkorswim and TradingView chart analysis supplied after the close.
Continue Reading
The chart is only half the trade.
Finding the level is one thing. Waiting for confirmation without chasing is another. Put your decision-making to the test or explore the psychology behind better trading discipline.
Dagger Trading Merch
Check out the latest Dagger Trading mugs. โ
Trading humor, psychology, and Dagger designs... now available on mugs.
Check Out the Mugs โPrevious Update โ September 15, 2026
AVGO round-trips its rally and returns to a major decision area
What matters most
- AVGO rallied from roughly $342 after the September 3 update to about $372.70 on September 8, then gave back nearly the entire move.
- The rally stalled around $371.69โ$372.70, which now stands out as a major resistance zone.
- Monday's semiconductor selloff pushed AVGO down 4.77% to $344.72, bringing the stock back toward its key low-$342 support area.
- $346.59 is the first resistance level AVGO needs to reclaim. Above it, $351.15 is the next resistance, followed by the $353.09โ$356.60 major reclaim zone.
- If the $342.33โ$342.91 key support zone fails, the larger downside roadmap points toward $328.95 and then $321.50.
What happened?
AVGO made a powerful move after the September 3 update, climbing from the low-$340s to an intraday high around $372.70 on September 8. The rally ran into resistance around $371.69โ$372.70, however, and buyers could not sustain the breakout.
Since that rejection, AVGO has retraced nearly the entire rally. Shares fell 4.77% Monday to close at $344.72 after reaching $343.91 intraday. That puts the stock back near the post-earnings lows and makes the next few levels especially important.
Latest news
Monday's decline was part of a much broader selloff in AI and semiconductor stocks after leading AI executives raised concerns about the pace and safety of advanced AI development. The Philadelphia Semiconductor Index fell about 5.9%. Rising interest rates added another headwind as the 10-year Treasury yield briefly moved above 5%.
Broadcom also has a company-specific issue in the background. European Union regulators are reportedly gathering information from cloud providers about Broadcom's revised VMware licensing framework. For now, I view that as an additional regulatory overhang rather than the main explanation for Monday's sharp decline.
Wall Street reaction
Wall Street has remained broadly constructive despite the volatility. Piper Sandler initiated Broadcom with an Overweight rating and a $460 price target on September 10. CITIC Securities upgraded the shares to Buy on September 8 with a $525 target, and Bernstein reiterated a Buy rating on September 14.
Those longer-term targets do not change the near-term chart. AVGO has lost several levels during the reversal, so price still needs to prove that buyers can regain control.
Key levels Iโm watching now
Dagger Trading Take
The low-$340s are the decision point now.
AVGO has nearly round-tripped a roughly $30 rally, but that does not automatically mean the stock is ready to bounce. The first sign of improvement would be a reclaim of $346.59. From there, $351.15 is the next resistance, followed by the major $353.09โ$356.60 reclaim zone.
On the other side, the $342.33โ$342.91 support zone is critical. If that area fails and starts acting as resistance, the larger roadmap opens toward $328.95 and then $321.50.
Momentum is key. Let price confirm the next move.
Broadcom โข Fiscal Q3 2026
Original Spotlight โ September 2, 2026
Published after earnings
What matters most
- Broadcom reported $29.59 billion in revenue, up 86% year over year and above expectations.
- Adjusted EPS came in at $3.32, above the roughly $3.22 FactSet estimate.
- AI semiconductor revenue reached $16.7 billion, up 221% year over year.
- AVGO initially plunged to $342.20 after hours before recovering sharply.
- $361.07 is the immediate support level Iโm watching. If buyers can hold it and regain momentum, $381.26 becomes the major upside area.
Strong quarter. Complicated reaction.
Broadcom delivered another strong quarter, but the first reaction after earnings was anything but simple. Shares initially plunged to $342.20 after hours before recovering sharply as investors digested the results and managementโs longer-term AI outlook.
What happened?
Revenue reached $29.59 billion, up 86% from a year earlier, while adjusted earnings came in at $3.32 per share. Both figures were above Wall Street expectations.
Semiconductor-solutions revenue reached roughly $20.8 billion, while AI semiconductor revenue climbed to $16.7 billion. Broadcom said demand for custom AI accelerators and networking remains very strong.
The AI story keeps getting bigger
Broadcom expects AI semiconductor revenue to reach approximately $21.7 billion in Q4. Management also said it has secured enough supply to support roughly $115 billion of AI semiconductor revenue in fiscal 2027, with demand exceeding that outlook.
Looking further ahead, CEO Hock Tan said Broadcom has line of sight toward approximately $230 billion of AI semiconductor revenue in fiscal 2028 and expects the company to exceed $30 in EPS that year.
The custom-chip business is becoming increasingly important. Management discussed work involving Google, OpenAI, Meta and Anthropic, with Anthropic expected to become Broadcomโs largest custom-chip customer in 2027.
Why did AVGO sell off?
The initial drop did not come from an outright earnings miss. Broadcom beat revenue and adjusted EPS expectations, and its Q4 revenue outlook of roughly $34.8 billion was slightly above consensus.
The issue was expectations. With enthusiasm around Broadcomโs AI business already extremely high, the near-term outlook offered only limited upside versus Wall Street estimates. Investors were also weighing the effect of a growing custom-silicon mix on gross margins and competition across the AI-chip market.
As the earnings call progressed and management detailed its much larger 2027 and 2028 AI opportunity, AVGO recovered a large portion of the initial selloff.
Post-earnings price action
AVGO initially fell as low as $342.20 after earnings before buyers stepped in aggressively. That low marks the extreme of the immediate post-earnings reaction and serves as the lower anchor for the current retracement structure Iโm watching.
The recovery was impressive, but that does not automatically make the setup bullish. Price still needs to prove that buyers can defend support and continue reclaiming higher levels.
Key levels Iโm watching
Post-earnings low: $342.20 remains an important reference point from the earnings reaction, but Iโm keeping the active roadmap focused on the levels above.
Dagger Trading Take
Strong numbers. Let price confirm the next move.
Broadcomโs earnings and longer-term AI outlook were impressive, but strong fundamentals do not guarantee an immediate move higher. After a reaction this volatile, I would rather let price confirm the next direction than chase the headline.
For now, $361.07 is the line in the sand. Hold it and $381.26 becomes the major upside area. Lose it and $353.09 becomes the next support test. If that breaks, the deeper $328.95โ$321.50 zone comes into play.
Wait for confirmation, not assumption.