Shares of Broadcom rallied more than 6% on Wednesday as the stock is making its way back towards its January high price of $250. The move follows a textbook “buy the dip” correction of Broadcom stock that ended last week.
In December, the semiconductor stocks surged from $180 to $250 per share after a stronger than expected earnings report. The company surprised and analysts by beating both revenue and earnings per share target, after issuing downside guidance during the company’s previous earnings report in September.
Created in a wide range between $220 and $250 for about 3 weeks before pulling back on a healthy correction.
That correction tested Broadcom's 50 day moving average for three days. Before. Investors stepped in to buy the dip with heavy volume at $205. Right now, trading 15% above that buy the dip price, but there's more upside for Broadcom ahead of its next earnings report.
Broadcom has strengthened its position in the AI industry, with its semiconductors and its infrastructure software both lending their way to strong growth in data centers. As a result, Broadcom shares are trading more than 60% higher over the last six months compared to NVIDIA’s gains of 22%.
That performance puts Broadcom in the leadership role for the semiconductor sector.
Today's move caught the attention of the options market as the January 2026 two $190.00 calls saw an increase in volume.
At more than 22% out of the money. The increased activity in these call options suggests that speculators are bullish on Broadcom, rising to $300 and above over the intermediate-term future. Put that move into perspective, shares of Broadcom surged 40% in two days following its last earnings report.
Shorter term expiration options also increased in call volume on Wednesday as speculators expect Broadcom to continue its rally.
From a technical perspective, a move above $240 would likely see an increase in bullish activity as investors may have that familiar “fear of missing out” on one of the semiconductor sector’s strongest performers ahead of its earnings report in a few weeks.
Shares of Broadcom maintain a long-term bullish outlook, with a price target of $350.