Bullish Commentary on Broadcom
"Now, this is also really strong for Bracom, ticker AVGO. We can see after hours the stock is up roughly 1.6%. The reason this is very bullish for Bracom is Bracom is the one that helps Google kind of build these chips, not the manufacturing but the design process and they get a form of fee because of it."
The speaker offers a bullish commentary on Broadcom (AVGO), highlighting its after-hours performance and its key role in enabling Google to design chips, which is seen as a strong positive catalyst for the stock.
Buy the Dip in the Broad Market on a Near-Term Pullback
"But I think at least 5% move probably starts in October into November. At that time, I think you do want to buy dips. And I think the market likely goes higher into year end..."
Mark Newton outlines a near-term trade call where he expects a 5%-10% pullback in the market starting in October into November. His suggestion is to buy on the dips during this choppier period, anticipating that the market will resume its upward trajectory into year end or early next year.
Broadcom Options Stacking: A Catalyst Trade Call
"I had the December 27 call for 310 and took my 40% gain in 24 hours. People were grabbing that 310 call, with some options shooting up 200% to 300% immediately after earnings beat every number. This stacking strategy on Broadcom showcases a clear catalyst event and option play."
The speaker details an option trading strategy on Broadcom (AVGO) in which they moved from a 155 call to a 175 call and later stacked positions with a 310 call. The catalyst was strong earnings, and the options saw gains of 200% to 300% in 24 hours. This actionable trade call offers a short-term options play opportunity based on clear quantitative support and earnings momentum.
Favor Broadcom (AVGO) Amid AI Trade Shift
"But one of the things that their earnings showed was that companies are kind of changing a little bit around how they are, the kind of chips they want for AI. NVIDIA is big in the GPUs... But there is now a switch to something called XPUs... And Broadcom signal that there's been kind of a pivot to those. And that's really been good for Broadcom. You know, Broadcom has gained 42% over the past three months and 146% over the past 12."
Investors should consider positioning in Broadcom (AVGO) as the company appears to be benefiting from a shift in AI chip demand, outperforming NVIDIA in recent performance figures.
AVGO: Loading at 253 If Pullback Occurs
"If we saw a pullback to 253, my ass would be loading into this one."
The speaker recounts his technical analysis on AVGO. He highlights that despite spectacular earnings gains (from a previous low of $170 up to a current range of $340-$350), the stock appears overextended on the weekly MACD and RSI. He indicates a specific entry point: if the price pulls back to the support level around $253, it would be an attractive buying opportunity.
Broadcom Gains Momentum with AI Catalyst
"Broadcom (AVGO) is up almost 13% on a weekly basis, benefiting from its collaboration with OpenAI on a new AI chip. The company has added over $200 billion to its market cap recently, underscoring its role as a key AI beneficiary in the post-ChatGPT boom."
Broadcom shows strong weekly momentum driven by its involvement in AI chip development alongside OpenAI. This catalyst, along with its significant market cap expansion, positions the stock as an attractive growth play in the tech sector.
Broadcom (AVGO) Earnings Play with Target PT $307
"Broadcom (AVGO), trading at 45 times forward earnings, has an average target price of $307 according to analysts; despite some lowered EPS estimates, the upside remains attractive provided the stock doesn't pull back to around $253."
The analyst discusses Broadcom (AVGO) in the context of its upcoming earnings announcement, highlighting a trade setup where the stock is seen as expensive but with a defined reward profile. With an average target of $307 and a noted risk of a decline to $253, this insight provides clear entry/exit parameters for investors.