AVGO Stock Alert: What to Know as Broadcom, Apple Announce Expanded 5-Year Chip Deal

Broadcom (AVGO) shares extended gains on July 6 following news that the company has expanded its chip partnership with Apple (AAPL) through 2031. 

As investors cheered this expanded multi-billion-dollar collaboration with the iPhone maker, AVGO ripped through its 100-day and 200-day moving averages (MAs), indicating shifting momentum in favor of the bulls. 

The Apple news brings much-needed reprieve to Broadcom stock that has otherwise been a major disappointment for investors in recent weeks, currently down about 22% versus its June high.

Why the Apple Deal Is Bullish for Broadcom Stock

The announced extension addresses a long-standing overhang on AVGO shares: the fear that Apple would completely replace Broadcom chips with in-house silicon. 

Although the titan has made strides designing proprietary parts — like its N1 Wi-Fi chips — this deal cements Broadcom’s role as an indispensable partner for complex, custom radio-frequency (RF) components, Bluetooth, and Wi-Fi architecture. 

Today’s rally is completely justified given AAPL routinely accounts for about 20% of Broadcom’s total annual revenue. 

Locking in this cash flow for another half-a-decade stabilizes AVGO’s non-AI semiconductor unit, ensuring a highly predictable and lucrative baseline stream of high-margin hardware revenue. 

Where Options Data Suggests AVGO Shares Are Headed

Broadcom shares pushed higher on July 6 also because the Apple deal secures more flexibility for the company to aggressively reinvest cash flow into its expanding cloud AI portfolio.

This would help prove to investors that the giant’s growth engine extends far beyond a handful of hyperscale data center clients.

What’s also worth mentioning is that the options market predicts continued momentum as the year unfolds. The put-to-call ratio on AVGO contracts expiring mid-September sits at 0.55x currently, signaling a strong bullish skew. 

And the upper price on those contracts indicates potential for a more than 16% rally to $438 over the next two months. 

What’s the Consensus Rating on Broadcom

Wall Street analysts are even more bullish than options traders on Broadcom for the remainder of 2026. 

According to Barchart, the consensus rating on AVGO stock remains at “Strong Buy.” The mean price target of nearly $517 suggests potential upside of more than 35% from current levels.