Broadcom AVGO Stock Soars 10% on Strong Earnings, Nasdaq Slides Further

Broadcom’s AI Revenue Surges, Driving Stock Higher

Broadcom (AVGO) delivered strong earnings and an optimistic 2025 outlook, offering the kind of growth that AI investors have been searching for. Despite a challenging period for AI stocks, Broadcom’s solid financial performance helped spark a major rebound.

Earlier in the session, AVGO stock opened with a bearish gap, plunging nearly 5% and breaking below the 200-day SMA (purple), which had been a key support level. By the close, Broadcom was trading at session lows. However, after the U.S. market session ended, Broadcom’s earnings report was released, triggering a sharp 10% jump in after-hours trading. The stock surged from $180 to $197 before pulling back slightly.

AVGO Shares Price Chart Daily – The Price Should Open Higher Tomorrow

Broadcom reported $4.1 billion in AI-related revenue for the most recent quarter, marking a 77% year-over-year increase. The company expects AI semiconductor sales to reach $4.4 billion in fiscal Q2, reflecting continued strong demand from hyperscale cloud providers.

In addition, Broadcom’s revenue forecast for fiscal Q2 came in at $14.9 billion, surpassing analysts’ expectations of $14.7 billion. The strong guidance helped fuel the after-hours rally, as investors regained confidence in AI-related growth.

Nasdaq Falls as Market Turmoil Continues

While Broadcom surged, the broader U.S. stock market had a rough day, with the Nasdaq falling further, now down 10% from its highs. Market sentiment remains weak, with major indices struggling to find support.

The reasons behind today’s stock sell-off are not entirely clear, but hedge funds appear to be unwinding positions, adding to market volatility.

Trade policy uncertainty also weighed on markets, as Trump reversed course on USMCA tariffs. While some exemptions have been rumored, the lack of clarity is adding to investor unease, especially with new tariffs set to take effect on April 2.