TLDR
- Broadcom stock rose 4.83% on Wednesday after Apple announced a deal exceeding $30 billion with the chipmaker
- Apple will invest $1.5 billion in CapEx to expand Broadcom’s Fort Collins, Colorado facility
- AVGO was up an additional ~1.35% in Thursday premarket, trading around $393.94
- Wall Street holds a “Strong Buy” consensus with a 12-month price target of $516.91, implying ~33% upside
- Erste Group downgraded AVGO to Hold on July 7, while UBS and Bank of America maintained Buy ratings
Broadcom Inc. (AVGO) stock jumped 4.83% on Wednesday, closing at $388.69, after Apple revealed it would expand its spending with the semiconductor giant in a deal now expected to exceed $30 billion.
The announcement came as part of Apple’s broader pledge to invest $600 billion in the U.S. economy over four years. A standout piece of the deal is a $1.5 billion capital expenditure commitment aimed at expanding and modernizing Broadcom’s facility in Fort Collins, Colorado.
AVGO built on that momentum in Thursday’s premarket, adding another 1.35% to trade around $393.94. Nasdaq futures were also up 0.57%, lending broader support to large-cap semiconductor names.
The weekly gain for Broadcom now stands at 4.38%, reflecting how quickly sentiment shifted following the Apple announcement.
William Blair analyst Sebastien Naji issued a Buy recommendation on July 8, citing positivity around the deal. That view aligns with the broader Wall Street consensus, which rates AVGO a Strong Buy with a 12-month average price target of $516.91 — representing roughly 33% upside from current levels.
Analyst Moves
Not every analyst is in bullish mode, though. Erste Group downgraded AVGO to Hold on July 7, just one day before the Apple deal came to light. UBS reiterated its Buy rating on June 4 but trimmed its price target to $485. Bank of America also kept its Buy rating and raised its target to $530 on the same date.
The consensus average price target sits at $513.68. Wall Street expects earnings of $3.16 per share for the upcoming quarter, up sharply from $1.69 a year earlier. Revenue is projected to reach $29.44 billion, compared to $15.95 billion in the prior-year period.
The next earnings report is expected on September 3, 2026.
Technical Picture
Broadcom is trading above its 20-day SMA of $380.92, its 100-day SMA of $374.07, and its 200-day SMA of $361.86. The longer-term trend looks intact.
However, the stock is still 2.7% below its 50-day SMA of $406.79, a level traders are watching as near-term resistance. A close above that level could shift the intermediate trend more firmly to the upside.
The RSI sits at 49.67, which is neutral — neither overbought nor oversold. Support is seen near $370.50, just above the 200-day SMA.
The stock’s 52-week range runs from $269.58 to a high of $495.00, hit in June. At current prices, AVGO trades at roughly 64.7 times earnings.
On the quality side, Broadcom carries a Quality score of 95.91 and a Momentum score of 79.15, though its Value score of 6.81 reflects a premium to peers.
TradingView data shows the stock has been classified as a Buy across the last 24 hours, past week, and past month, based on moving averages and oscillator readings.
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