Erste Group analyst downgrades AVGO to Hold citing limited upside after Apple extends supply agreement through 2031.
Broadcom shares faced a downgrade from Erste Group analyst Hans Engel, who lowered his rating to Hold despite Apple extending its chip supply deal through 2031. The agreement, valued at over $30 billion, includes production of more than 15 billion U.S.-made chips and a $1.5 billion expansion at Broadcom’s Fort Collins facility.
The deal marks Apple’s largest commitment under its American Manufacturing Program, focusing on custom silicon and advanced wireless components. Analysts noted the rally may have already priced in most of the upside, limiting further gains.
Broadcom’s stock had surged on the Apple news before the downgrade, highlighting investor caution over valuation despite the long-term revenue floor.