🧠 AVGO Deep Dive: Broadcom Just Got Caught in the AI Valuation Reset. Now the Chart Gets Interesting.

Broadcom caught my attention Friday because the size of the selloff looked more dramatic than the news surrounding the company itself.

AVGO fell 5.94% as semiconductor stocks came under pressure following Applied Materials’ earnings reaction. AMAT delivered an upbeat forecast and still sold off, reinforcing how unforgiving the market has become toward AI-related stocks carrying very high expectations.

Broadcom was pulled into that same pressure.

There was no new Broadcom earnings disappointment Friday. Its next earnings report is scheduled for September 2.

What made the chart interesting was where the selling stopped.

AVGO traded down to $388.50, briefly moved below its 50-day moving average, and then recovered enough to finish back above it at $392.99.

That does not give me a trade.

It gives me a level worth watching.

Broadcom remains one of the central companies in the AI infrastructure buildout, but this is also a stock where expectations have become almost as important as the actual growth numbers.

Now I want to see whether Friday’s weakness was simply another reset inside the larger trend or the beginning of something more serious.

If you are reading the free preview, I offer a 30-day free trial to The Options Oracle premium subscription. When one of these Deep Dive setups gives me the confirmation I am looking for, paid subscribers receive my trade alert with the entry, complete trade logic, take-profit plan, and ongoing management updates.