Broadcom Up 10% Post-Stock Split: Strong Bullish Indicators With 12 Days To Go

Broadcom Inc. AVGO climbed over 10% since its announcement of a 10-for-1 stock split on June 12.

The semiconductor company’s stock has been on a remarkable uptrend, boasting an 89.12% increase over the past year and a robust 48.49% year-to-date rise.

In its latest financial report for the second quarter, Broadcom delivered results that surpassed expectations, further bolstering investor confidence.

Read Also: Broadcom’s Bull Run: Key Indicators Behind 100% Surge To All-Time High

The Palo Alto, California-based company reported earnings per share (EPS) of $10.96, beating the estimated $10.84, and generated revenue of $12.487 billion, exceeding the expected $12.028 billion.

The decision to initiate a 10-for-1 forward stock split aims to enhance liquidity and appeal to a broader base of retail investors, reflecting Broadcom’s bullish outlook on its future growth prospects.

Price Momentum Indicates Strong Bullish Sentiment

Broadcom’s technical metrics underscore its current bullish momentum. The stock price is comfortably above its 5, 20, 50, and 200-day moving averages, signaling robust buying pressure and positive sentiment among investors.

Chart created using Benzinga Pro

Specifically:

• The 8-day simple moving average stands at 1,614.26, reinforcing a strong bullish signal.
• The 20-day and 50-day simple moving averages support further upside potential, both indicating a clear bullish sentiment with prices at 1,582.15 and 1,435.46 respectively.
• The 200-day simple moving average, at 1,179.84, also aligns with a bullish outlook, indicating sustained upward momentum.

Chart created using Benzinga Pro

Additionally, technical indicators such as the Moving Average Convergence Divergence (MACD) at 59.68 and the Relative Strength Index (RSI) at 61.43 suggest that Broadcom is currently in a near-overbought but bullish phase.

The Bollinger Bands analysis further supports this, with the 25-day bands indicating favorable buying conditions, with Broadcom stock trading in the upper band.

Investor Sentiment Positive Ahead Of Stock Split

With Broadcom’s stock split announcement driving significant investor interest and the company’s strong financial performance backing its growth trajectory, analysts remain optimistic about Broadcom’s future prospects.

The stock’s recent surge underscores a bullish sentiment in the semiconductor sector, positioning Broadcom as a key player to watch in the coming days.

As the stock split date approaches, scheduled in just 12 days, market analysts anticipate continued upward momentum supported by favorable technical signals and ongoing investor confidence in Broadcom’s strategic initiatives.

Read Next:

• Nasdaq 100 Notches Record Daily Close, Boosted By Mega-Cap Giants, Fed Rate Cut Optimism