Broadcom (AVGO) Shares Jump Nearly 10% Following OpenAI Partnership Announcement
Broadcom’s stock surged close to 10% later than news of its partnership with OpenAI became public. Last month, a similar collaboration announcement had driven NVIDIA (NVDA) shares sharply higher, and Broadcom is now viewing comparable bullish momentum.
The two firms have reportedly been working together for 18 months, but are only now formally revealing their alliance. Their 2026 plans include launching chip racks developed by OpenAI and built on Broadcom’s technology.
The rally in AVGO was also supported by broader market optimism:
→ President Trump’s softer tone on tariffs later than previous threats of 100% duties on Chinese excellents;
→ expectations of a potential US–China leadership meeting in South Korea later this month, as noted by US Treasury Secretary Scott Bessent.
Technical Overview of AVGO Shares
AVGO shares formed an upward-sloping channel through mid-2025 (marked in blue). The recent earnings report pushed the stock to:
→ create a bullish gap in ahead September;
→ extend the channel to the current all-time high, which now sits near its upper boundary.
Bullish perspective:
→ The stock remains within the channel, suggesting the trend is intact.
→ The pullback to October lows later than the A→B move appears to be a typical Fibonacci correction (0.5–0.618).
→ Yesterday’s spike could indicate a breakout from a bullish flag (red), signalling a potential resumption of the uptrend.
→ The $315–325 range is now a critical support area, while the 10 October low may have trapped bears.
Bearish perspective:
→ AVGO dipped slightly in pre-market trading, hinting that yesterday’s surge might have been overextended.
→ Resistance remains around the psychological $350 mark, where previous attempts to hold above it have failed.
If momentum fails to continue, this could reveal underlying fragileness in AVGO shares, suggesting the stock may struggle to sustain the 2025 bullish trend despite strong fundamentals.
offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
The is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer: This sponsored market analysis is provided for informational purposes only. We have not independently verified its content and do not bear any responsibility for any information or description of services that it may contain. Information contained in this post is not advice nor a recommendation and thus should not be treated as such. We strongly recommend that you viewk independent financial advice from a qualified and regulated professional, before participating or investing in any financial activities or services. Please also read and review
