$BTC

Broadcom (AVGO) Sharp Drop, Shares of the semiconductor company Broadcom (AVGO) fell 6% at the open, despite the company beating earnings and forecasts. However, concerns about competition and margin pressure are causing the decline. Furthermore, AVGO was trading at historic highs with a forward P/E ratio of nearly 50. This compares to Nvidia (NVDA), which has a forward P/E of 25. In other words, AVGO needed a reality check, no matter how good the earnings/revenue were.

The chart also confirmed that a drop was approaching. Just a few days ago, AVGO touched an upward trend line that had marked every previous high since 2024. As the value falls sharply, investors should watch the $360 level, which could offer a bounce. This technical support should provide a good quick rebound.

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