Apple Deal Pushes AVGO Stock Higher

Sentiment surrounding AVGO is already quite bullish

Deputy Editor
Jan 24, 2020 at 10:01 AM
facebook twitter linkedin

A announcement that Broadcom Inc (NASDAQ:AVGO) is entering into two separate multi-year agreements, "2020 SOWS," with Apple (AAPL) is giving the shares of the semiconductor concern a boost this morning. These agreements will supply wireless components to the iPhone maker, and could generate as much as $15 billion in revenue for the chip specialist. At last check, AVGO is up 3.5% to trade at $330.90. 

This pop puts the stock well on its way to eclipsing its Dec. 18 all-time high of $331.20. Looking more broadly, AVGO staged a sharp bounce off its 100-day moving average later that same month, and is now pushing past recent pressure at its $320 region. Year-over-year, the equity has added over 25%. 

It's unsurprising then that the brokerage bunch is mostly bullish, with 16 "buy" or better ratings on the board. Four tepid "holds" remain though, which could push AVGO higher, should these hold-outs change their tune. 

Likewise, the options pits have rarely been more call-heavy. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) calls have nearly doubled puts during the last 10 weeks, and what's more, the resulting ratio sits higher than all readings from the past year. This suggests a much heavier-than-usual appetite for long calls of late. 


Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners