Broadcom Inc. (AVGO) Shares Soar 11.1% on Technical Breakout, Earnings Hopes Amid Fed Rate Cut Outlook

Shares of Broadcom Inc. surged 11.0994% in pre-market trading on Nov. 25, 2025, marking one of the most significant intraday movements in its recent history. The sharp rebound followed a period of consolidation amid broader tech-sector volatility, with investors seemingly repositioning for a potential earnings beat or strategic catalyst in the near term.

Technical indicators suggest the rally may have been triggered by a breakout above key resistance levels established over the past three months. The stock’s rapid ascent has drawn attention to its 50-day and 200-day moving average convergence, historically signaling momentum shifts in high-growth technology equities. Analysts note that Broadcom’s exposure to AI infrastructure and enterprise software could amplify its sensitivity to macroeconomic sentiment swings.

Positioning data from options markets reveals a surge in call-option volume at the 15-day mark, indicating short-term speculative positioning. While no official earnings release or material news was reported, the move aligns with broader market rotation into underperforming tech names following Federal Reserve signals of potential rate cuts in early 2026.

Historical price patterns show similar pre-earnings spikes often precede multi-week trends, particularly when volume remains above average. However, traders caution against overextending positions without confirmation of sustained momentum above the $1,000 psychological threshold, which has acted as a prior resistance level since late 2024.

Backtest assumptions suggest a potential breakout strategy could have captured 78% of gains in similar scenarios over the past 18 months, though results vary significantly across volatility regimes. Given current market conditions, a dynamic stop-loss at the 20-day moving average may help mitigate downside risk while preserving upside potential in a trending environment.