Broadcom stock climbs after JPMorgan’s bullish rating and a $30 billion Apple supply agreement, though insider selling raises questions.
Broadcom (NASDAQ: AVGO) shares have surged following JPMorgan’s aggressive buy rating and a $30 billion deal with Apple, pushing the stock near $389. The agreement, spanning until 2031, includes over 15 billion US-made chips and a $1.5 billion expansion of Broadcom’s Colorado plant.
Analysts overwhelmingly back the stock, with 47 of 51 covering it rating it a buy. JPMorgan’s $580 price target implies 49% upside from current levels, citing Broadcom’s leadership in custom AI chips and advanced packaging. The stock remains 21% below its 52-week high of $495, with earnings due September 2.
Despite the bullish outlook, a Broadcom executive recently sold millions in shares, contrasting with the market’s optimism. The Apple deal, centered on custom ASIC silicon for cloud-based AI, aligns with JPMorgan’s thesis but leaves some investors cautious.