What's Going On With Broadcom (AVGO) Stock?

NVIDIA Corp’s earnings report Wednesday after-hours could have significant implications for Broadcom Inc AVGO, a leading semiconductor company with deep ties to the AI and data center markets.

Broadcom supplies high-performance networking chips and custom silicon essential for AI workloads, making Nvidia's performance a key indicator of its own growth prospects.

What To Know: A strong Nvidia earnings report with continued robust demand for AI infrastructure would likely bolster confidence in Broadcom's role as a critical supplier to the AI ecosystem.

Broadcom's custom ASICs and networking solutions are integral to the data centers powering Nvidia's GPUs, meaning sustained or increased AI investments would reinforce the demand for Broadcom's offerings.

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Conversely, a weaker-than-expected Nvidia report could raise concerns about a slowdown in AI-related spending, directly impacting Broadcom's growth narrative. Investors would likely scrutinize Nvidia's guidance for insights into potential headwinds, such as shifting customer demand or overbuilt inventories, that could ripple through to Broadcom's operations.

Broadcom is also positioned as a key player in multi-generational AI infrastructure builds, making Nvidia's comments on future growth critical for assessing long-term demand.

Given that Broadcom's stock often moves in tandem with sector leaders like Nvidia, heightened market volatility surrounding Nvidia's results could amplify reactions in Broadcom's valuation.

Ultimately, Nvidia's earnings will serve as a litmus test for the durability of AI-driven growth, a factor closely tied to Broadcom's success.

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How To AVGO Stock

By now you're likely curious about how to participate in the market for Broadcom – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Broadcom, which is trading at $163.41 as of publishing time, $100 would buy you 0.61 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, AVGO has a 52-week high of $186.42 and a 52-week low of $90.31.