Broadcom (NASDAQ:AVGO) shares are up on Thursday as the company disclosed the launch of its BroadPeak radio digital front-end SoC device. It is aimed at enhancing 5G and 6G wireless infrastructure.
This news comes as the broader market experienced declines, with major indices like the S&P 500 and Nasdaq both closing lower yesterday.
Details
BroadPeak is the first digital radio front-end to meet upcoming 5G Advanced requirements in the n104 band (6.425–7.125 GHz) and future 6G upper mid-band needs (7–8.5 GHz).
It will enable operators and OEMs to design next-generation, high-capacity networks for AI-driven applications and personalized digital experiences.
Broadcom has begun shipping samples of its BroadPeak BCM85021 to early access customers, which integrates advanced technology for massive MIMO and remote radio head applications.
The device promises up to a 40% power reduction compared to existing solutions, positioning it as a key player in the upcoming 5G Advanced and 6G standards.
The BroadPeak SoC features state-of-the-art 5nm CMOS technology, enabling mobile operators to design high-capacity networks that support AI-driven applications.
This launch is critical as the demand for enhanced mobile network capabilities continues to grow, particularly in light of increasing data consumption.
Technical Analysis
Meanwhile, the broader market experienced a downturn yesterday, with the S&P 500 falling by 0.37% and the Technology sector declining as well. Broadcom’s stock is moving against this backdrop of market weakness, suggesting that company-specific factors may be influencing its performance.
The stock is currently trading 0.6% above its 20-day simple moving average (SMA) but is 5.2% below its 100-day SMA, indicating some short-term strength while struggling with longer-term trends. Over the past 12 months, shares have increased by 45.81% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 48.88, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is at -2.4969, with the signal line at -4.0188, indicating a bullish crossover as the MACD is above the signal line.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while the stock is not in a strong trend, there is potential for upward movement.
- Key Resistance: $340.00
- Key Support: $330.50
Earnings & Analyst Outlook
Broadcom is set to report earnings on Mar. 4, 2026.
- EPS Estimate: $1.88 (Up from $1.60)
- Revenue Estimate: $19.17 billion (Up from $14.92 billion)
- Valuation: P/E of 69.9x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $446.60. Recent analyst moves include:
- Citigroup: Buy (Lowers Target to $458.00) (Feb. 17)
- DA Davidson: Initiated with Neutral (Target $335.00) (Feb. 13)
- Wells Fargo: Upgraded to Overweight (Raises Target to $430.00) (Jan. 15)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Broadcom, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 6.52 — The stock is trading at a premium relative to its peers.
- Quality Rank: 96.75 — The company maintains a strong balance sheet and operational efficiency.
- Momentum Rank: 76.11 — The stock is showing strong upward momentum.
The Verdict: Broadcom’s Benzinga Edge signal reveals a strong quality score, indicating solid fundamentals. However, the value rank suggests that investors should be cautious about the premium valuation as they consider entry points.
AVGO Price Action: Broadcom shares were up 0.75% at $336.00 at the time of publication on Thursday, according to Benzinga Pro data.
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