AVGO Options Signal Bullish Breakout: Target $400–$410 as AI Infrastructure Catalyst Kicks In

• AVGO surges 2.01% to $388.68, with RSI at 67.3 and MACD histogram rising above 2.18.
• Call OI peaks at $400 and $410 strikes (this Friday’s expirations), while puts cluster at $365–$367.5.
• Analysts raise price targets to $435–$450, citing Google’s TPU demand and HBM4 supply deals.

Broadcom’s options market is whispering a breakout story. Calls at $400 and $410 dominate open interest, while puts at $365 act as a psychological floor. Combine this with a stock price testing Bollinger Bands’ middle at $363.5 and a 52-week high of $403, and the math is clear: this stock is primed for an upside move. Let’s break down why.

Bullish OI Clusters and the Quiet Battle for $400

Options traders are stacking calls at $400 (OI: 10,223) and $410 (OI: 7,356) for this Friday’s expiration. That’s not random—it’s a vote of confidence. The $400 strike, just 3% above today’s price, has become a gravity point. Meanwhile, puts at $365 (OI: 7,420) suggest a perceived support level.

But here’s the twist: the put/call ratio for open interest is nearly balanced at 1.02, meaning no extreme fear. Yet the heavy call interest implies a race to secure leverage if the stock cracks $400. The risk? If AVGO stalls below $385 (30D support), those puts could gain traction. Block trades are absent, so no whale moves to complicate things—just a clean, data-driven setup.

Google’s TPU Play and the AI Infrastructure Tailwind

Broadcom isn’t just a chipmaker—it’s now Google’s HBM4 supplier for TPUs. Analysts project TPU demand to jump from 1.5–2M units in 2025 to 8–9M by 2028. That’s not just growth; it’s a structural shift.

The market’s reaction? Price targets are climbing. Oppenheimer and Morgan Stanley now see $435 and $443 as fair value. Combine this with Q3 earnings beats and Q4 guidance above $17.5B, and the narrative is solid. But here’s the catch: this stock’s move depends on Google’s Gemini 3 AI rollout. If the model underwhelms, the $365–$367.5 put cluster could become a lifeline.

Trade Ideas: Calls, Breakouts, and Precision Entries

For options traders, the AVGO20251212C400 call (expiring this Friday) is a high-conviction play. With the stock near $388, a close above $400 would trigger a rush to cover these calls. Set a stop below $385 (30D support) to protect against a pullback.

If you prefer next-week’s expirations, the AVGO20251212C405 offers a slightly safer entry, given the stock’s 2.18% intraday gain. For stock buyers, consider entries near $385 (30D support) with a target at $395 (Bollinger Band middle) and a stretch goal of $405 (aligning with analyst price targets).

Volatility on the Horizon: A Bullish Crossroads

Broadcom sits at a crossroads. The options market, technicals, and news all point to a $400–$410 breakout as the next catalyst. But don’t ignore the $365 floor—it’s a critical level to watch. If the stock holds there, the bull case remains intact. If it breaks, the 200D support at $187.35 becomes a distant concern.

This is a stock with momentum, infrastructure tailwinds, and a clear path higher. The question isn’t whether AVGO can go up—it’s how fast. And right now, the answer looks like a sprint.