Broadcom Shares Drop 5.4% Following China's Ban on U.S. Cybersecurity Software
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
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Source: Benzinga
- Chinese Regulatory Ban: Chinese regulators have instructed local companies to cease using cybersecurity software from several U.S. and Israeli firms, including VMware owned by Broadcom, highlighting national security concerns that could hinder Broadcom's market expansion in China.
- Stock Performance: Broadcom shares fell 5.4% to $339.84 on Wednesday, currently trading below both its 20-day and 50-day moving averages, indicating bearish pressure in the short term, prompting investors to exercise caution.
- Technical Indicator Analysis: With a relative strength index (RSI) of 50.76, Broadcom's stock is in a neutral position, although the MACD remains above its signal line, suggesting potential bullish momentum that could help the stock rebound if sustained.
- Long-term Trend Outlook: Despite the recent pullback, Broadcom's stock has gained 50.48% over the past 12 months, reflecting ongoing investor interest, and its current price is at 72.4% of its 52-week range, indicating a positive long-term trend.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 333.240
Low
390.00
Averages
462.58
High
525.00
Current: 333.240
Low
390.00
Averages
462.58
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stable Dividend Growth: Over the past decade, Broadcom has increased its quarterly dividend from less than $0.05 to $0.65, averaging over 10% annual growth, indicating a strong commitment to shareholder returns that attracts long-term investors.
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