AVGO is framed as the cleaner AI-name setup than NVDA: Broadcom’s revenue, AI-semi growth, and cash generation are presented as evidence it can keep benefiting as AI buyers build alternatives to Nvidia hardware. On the charts, Friendly Patterns flagged AVGO twice in early October 2026 — first a descending-channel breakout target of $406, then an inverse head-and-shoulders with a neckline around $360-$364 and a target near $391, with the trade idea shifting to buying/adds on red candles and on a break over $378 toward $385. NVDA is treated as vulnerable if it loses $235, with $244 the fading-resistance area and a break under $235 opening a move below $225. The setup is paired with a longer-horizon LEAPs thesis into September 2027, while October is flagged as potentially ugly because midterm-election volatility and any bad-news event could pressure the tape.
NVDA is treated as a potential "gravestone dogee" setup this week, with two days left in the week.
If NVDA breaks and closes below 235, the next target is below 225.
NVDA fading resistance is around 244, described as the level predicted to be hit last.
AVGO was identified by Friendly Patterns as an AI pick using the "Friendly Patterns" tool.
AVGO is described as powering the AI boom with custom chips, networking technology, and a software empire that throws off cash for growth.
Broadcom Q3 2026 revenue was 29.6 billion, up 86% year over year.
Broadcom Q3 AI semiconductor revenue was 16.7 billion, up 221% year over year and 54% sequentially.
Broadcom generated 13.7 billion of Q3 free cash flow, equal to 46% of revenue.
Management guided fiscal Q4 revenue to about 34.8 billion, implying 93% annual growth.
OpenAI and Broadcom unveiled the Jalapino inference chip in June 2026.
Jalapino is used to support the view that AVGO benefits as AI companies build alternatives to NVDA hardware.
Friendly Patterns first flagged AVGO on October 5 as a break above a descending channel, with a target at $406.
The October 5 AVGO channel breakout bounced off 341, then printed green stacking candles.
On October 6, Friendly Patterns flagged AVGO again on an inverse head-and-shoulders pattern.
The AVGO inverse head-and-shoulders neckline is around 360 to 364, with two higher weekly candles already breaking above it.
The inverse head-and-shoulders target on AVGO is around 391, with current price around 376 and a possible backtest to 364.
AVGO above 378 is expected to run to 385, completing the breakout move.
The stated trade is LEAP options on AVGO out to September 2027, with any red candles used to add one more LEAP.
The same add-on-the-red-candle approach is said to have worked previously in MSFT and closed as a "monumental trade."
Two first trades called out earlier in the day did not work, but later called trades on QQQ and AMZN reportedly ran over 100% in the live session.
October is flagged as potentially ugly because of lingering midterm-election volatility, and a single bad-news event could make the month a rough one.
AVGO is one of the names planned for investment into 2027.