Broadcom Rallies As Semiconductor Stocks Surge On Fed Rate Cut Hopes

Broadcom Inc (NASDAQ:AVGO) shares surged higher on Monday as tech and semiconductor companies joined a wider market recovery. The rally gained momentum after Federal Reserve Governor Christopher Waller‘s signal of support for a December rate cut, improving sentiment across industries.

What Happened: Wall Street's major indexes have climbed, led by strength in tech and mega-cap stocks, as hopes for a December Fed rate cut encouraged investors to take on more risk, according to Reuters.

Although caution from other policymakers calls attention to ongoing divisions ahead of the Federal Open Market Committee (FOMC) meeting next month, dovish remarks from Waller and Fed official John Williams helped soothe policy concerns and pause the recent selloff.

According to CME Group’s FedWatch Tool, investors now see a 76.9% chance of a 25-basis-point rate cut next month, up from 42% a week ago, despite differences within the Fed.

AVGO Analysis

Broadcom is trading about 7.5% above its 50‑day moving average of $348.14 and nearly 40% above its 200‑day moving average of $268.23. The relative strength index (RSI) is at 43.83, a neutral reading that suggests the stock has room to climb without being considered overbought.

Support sits at $337.27, while resistance is at $376.08. A breakout above resistance could open the door to a test of the 52‑week high, while a drop below support may weaken bullish sentiment.

With a market cap of $1.61 trillion, Broadcom ranks among the biggest names in semiconductors, competing with heavyweights like NVIDIA and Alphabet. Strong fundamentals and rising demand for chips continue to support its growth outlook.

As the stock nears resistance, traders are watching closely: a move above $376.08 could spark further momentum and new highs, while slipping below $337.27 would be a warning sign in the short term.

AVGO Price Action: Broadcom shares were up 9.95% at $374.10 at the time of publication on Monday, according to Benzinga Pro. The stock is trading near its 52-week high of $386.48.

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