Broadcom (Nasdaq: Afgo) could face a sharp decline towards $300 by late August 2026 if a key technical support level fails, according to an analysis shared by TradingShot.
Bearish outlook, common in TradingView mail On July 17, it comes as Broadcom stock It finished the last session at $370, well below its recent high near $495.
Analysis indicates that AVGO remains under pressure following rejection from the long-term uptrend line on June 3, with subsequent rallies failing to regain momentum.
The technical setup shows that Broadcom recently faced another rejection at its 50-day moving average (Master’s), a level that has served as a resistance level in recent weeks.
While the stock continues to find support at the 200-day moving average, the broader trend remains bearish.
According to the forecast, the next key signal for traders will be whether AVGO will close decisively below the 200-day moving average.
A breakdown below this support could accelerate selling pressure and trigger a move towards a multi-month support area between approximately $285 and $300.
The projected trajectory on the chart suggests that such a decline could continue through August, with the stock potentially reaching the $300 area in late August or early September.
The target also corresponds to the 100-period weekly moving average, which has been identified as a key long-term support level.
Momentum indicators support more cautious expectations. Relative Strength Index(RSI) remains in the neutral zone and is struggling to make a sustained recovery, indicating that buyers have not yet regained control of the trend.
The bearish chart projection contrasts with Broadcom’s underlying business performance.
the Semiconductors The infrastructure software giant announced record financial revenues for the second quarter of 2026 of $22.19 billion, up 48% year-on-year.
AI Semiconductor revenue rose 143% to a record high of $10.8 billion, while earnings and profitability also beat expectations.
Broadcom continues to benefit from strong demand for custom AI accelerators, networking equipment and its VMware software business.
These sectors have helped position the company as one of the most prominent beneficiaries of continued spending on AI infrastructure.
