Broadcom Rises After $30B Apple Pact, Still Below Peak

Broadcom shares rose 5% to $395 on Wednesday after Apple announced an expanded multi‑year partnership worth more than $30 billion to increase production of over 15 billion U.S.-made chips and to fund expansion at Broadcom’s Colorado facility.

The stock remains in a local bear market, more than 20% below its all-time high of $495 reached earlier this year. Shares fell to a monthly low near $356 before recovering to about $395, roughly 10% above that low.

Broadcom has secured several large commercial agreements tied to artificial-intelligence hardware. The company is manufacturing custom chips designed for OpenAI, which are in testing, and has extended supply arrangements with Meta Platforms and Alphabet. Jefferies analyst Blayne Curtis projects the OpenAI agreement could generate over $50 billion in revenue for Broadcom by 2028.

Broadcom reported second-quarter revenue of $22.1 billion, up 48% year over year. AI semiconductor revenue rose 143% to $10.8 billion. Analysts’ consensus estimates point to third-quarter revenue near $29.4 billion and fourth-quarter revenue around $34.9 billion, implying fiscal-year revenue close to $106 billion and the following fiscal year near $172 billion.

The company’s market value tops $1.85 trillion after several acquisitions, including VMware for $61 billion and earlier deals for CA Technologies and Symantec Enterprise Security. Broadcom reported a net profit margin near 39% and revenue growth around 32%, producing a Rule-of-40 figure close to 71%.

Valuation metrics show a forward price-to-earnings ratio near 40. On technical measures, the stock is trading below a swing level at $414 while remaining above its 200-day moving average. The year-to-date high stands at $495.

Market participants cite contract execution, demand for AI accelerators and networking, and maintenance of technical support levels as factors to watch for the stock’s near-term movement.