BROADCOM STOCK: Price PREDICTION: AVGO STOCK PRICE

there's the numbers for broadc a124 which is a beat on its bottom line the estimate was for a 120 adjusted revenue of 13.07 billion which did also come in higher than expected did it beat some of the more loftiest expectations out there that will be key hog tan who is the CEO broadcom some comments here in the press release he talks about how the third quarter results reflect continued strength in the company's AI semiconductor Solutions and VMware they expect revenue from AI to be $12 billion for fiscal year 2024 driven by ethernet networking and custom accelerators for AI data centers there's been some working estimates across Wall Street on that AI Revenue projection around 11 to over 12 billion so that will be something that will be debated as well he goes on to say that the transformation of VMware continues to progress well that was something that Wall Street will want more clarity on when the company uh earning call when the company's earnings call begins at 5:00 P p.m Eastern John all right I'll take it SEMA thank you SEMA Modi so Stacy we're going to go to you for those those results because it because it was a beat and it also in terms of the revenue from AI That's a raise to12 billion for fiscal 20124 from I think previous guidance of 11 billion your thoughts it is yeah look I think it looks looks good and and the other I know the stocks down a little bit but um the other thing important I think on the AI side is that the the margin guidance especially the E beta guidance in the Q4 looks pretty strong they're guiding 64 the street Wass run 622 part of the issue with some of the AI revenues the the custom chips that they're making for the hyperscalers they to tend have lower margins and so the margin guidance to me looks fine so I mean we'll see what they say on the call but at first glance this this looks decent to me again the stock's down a bit so you know maybe the the the the first reaction disagrees but my first this looks this looks pretty good here we have the current stock market update for broadcom Incorporated stock ticker AVG before we begin if you find these educational materials to be helpful in your trading please remember to click the like And subscribe buttons and leave your thoughts in the comment section below so that other Traders will be able to find this information more easily on the platform so here we have the 1H hour price chart and as we can see the stock is definitely trading lower despite posting positive earnings results this is starting to become a theme overall within the tech Bas this this earning season so in this video we will be looking at some very specific price levels that can be used to hopefully Identify some profitable trading strategies here for this stock going forward so as we can see here you know the broader trajectory here uh the trend that's being seen in most of the market is negative within the tech base this is occurring even after many of these major companies are reporting fairly strong results uh there was nothing really in the broadcom report which suggested that you know there was imminent danger or stock price that were ready to to start uh you know declining rapidly yet to start this training trading session here we can see that share prices are gapping lower and by a significant degree so we can already see share price lows coming in at 13702 would be the near-term low and then in addition to that we have this we have a very significant price Gap here which essentially formed uh the top of the price Gap now is seeing at 15250 roughly uh and then now the top of the uh you know the bottom candle here uh comes in right around 14340 uh so you know this is a price gap of nearly $10 which is fairly significant for a you know what what is normally considered to be a stable Stable Company stable stock stable investment um you know so this is a very significant price movement here uh even though we have seen positive earnings results for the most part so uh you know this is starting to become a trend here and what this does mean is that shareholders in any of these technology companies uh need to start to uh race for impact a bit uh be a bit cautious in positioning uh in other words this really means don't you know don't get into excessively large positions here uh based on uh you know based on earnings information at least I mean that that that at the minimum would be a requirement currently uh because as we can see here you know this price Gap has already started to damage uh the chart quite significantly uh within this price Gap what we can currently see here is that share prices completely skipped over the 61.8% Fibonacci retracement of this prior prior ascending move that we have been watching for this stock essentially this comes from the lows of 12850 uh which would have posted during the roughly the beginning of August roughly August 5th uh extending to the recent Highs at 17242 which posted during the August 22 trading session so if we look here what we can see is that the share price completely gapped over the 61.8% Fibonacci retracement at some point there is going to have to be uh you know a suggestion here that this Gap will need to be filled so there is some potential here for some fairly significant top side once share prices start to stabilize however what we're probably going to need to see here will be stabilization within the broader Market itself uh many of these stories are not are not stock specific many of these declines are not stock specific and the market does seem to be shrugging off or ignoring positive earnings information uh that has been released by you know fair you know major technology companies here so if take a look at the indicator reading you know we see some some additional reason for concern here because uh you know the recent attempt to start to build positive momentum in share prices has now recently been broken as we can see here so you know we have now moved into fairly heavily oversold territory the indicator reading in the RSI is right around the 20 Mark uh so you know this is a fairly strong you know level to the downside to be seeing anything below 30 would be considered oversold so you know there is some potential for a bounce here uh but it's it's fairly obvious at this point that you're really looking at a volatile trading situation where the market is completely ignoring uh positive earnings results overall the the trend momentum here is still focused on the downside uh so this is a stock that might not normally be viewed with caution but at the moment we can see here that there are some real reasons for concern uh when for anybody that's uh currently trading broadcom oh looking a little bit through the lines here infrastructure software uh was expected to be at 5.55 billion it's right about at 5.8 versus expectations infrastructure software seems to have performed better than semiconductor Solutions how do you feel about that yeah that may be part of what's going on here so I mean one of the big questions is what does that AI Revenue look like in Q3 versus Q4 they had actually guided for some lumpiness and so they'll give us some of the the segment numbers as we as as we get on the call so we can see um the the different drivers of the semiconductor business um in general though and and the issue is like but they took the AI guid if it's weak in Q3 because AI is weaker clearly it would be stronger in the Q4 because of the overall raay I would take that um I do think we need to wait for the call to see like what's driving this like on on this on the the semiconductor side in terms of like semis versus software I I'll I'll be honest like I like the acquisition strategy I like the software strategy I still think that there is upside to VMware um that's the the the big business that they just bought as we go through this year and into next year um it's it's massively profitable for business like I'll I'll I'll take it I'll I'll take it at this point I think it's fine um and we'll we'll see but to put a finer point on on what you're saying some of the excitement around the stock as being an AI play is more around the semi conductor side than it is around the uh infrastructure software side so if the infrastructure software side is what has outperformed in this quarter and if you said we don't know yet we got to listen to the call uh the guide being just about in line on Revenue at 14 billion is because that core chips business and the AI portion of it isn't outperforming that could be some of the cause of this initial reaction yes but they actually gave us the AI number so they're taking that up by like a billion dollars something so if there's any weakness in the semi business it would probably be the Core Business the core business has actually been quite weak they're not the only ones it's it's cyclically weak I think there was some hope that they had cut it enough I guess we'll find out if they cut it or or or not but I mean that is not a structural thing like that will come back eventually and if the AIP is making up the difference I think it's I think it's fine that's been the story as we went through the entire year by the way the core business has been worse the AI piece has been better it's actually bridged things over and they're one of the few sem companies that actually has not had to cut numbers as we've gone through this year because of the strength of the a our high value trading strategies membership is currently available for a limited time for only $9.99 per month these high conviction investment strategies are characterized by Superior risk to reward metrics that Target massive Market beating returns over time join now to outperform the market lock in this special introductory rate of just $9.99 per month for the entire lifetime of your membership and start trading stocks with the pros [Music]