Broadcom (AVGO) Extends Apple Deal Following A Fresh Look At Its Fair Value
Yahoo Finance ·
Broadcom (AVGO) Extends Apple Deal Following A Fresh Look At Its Fair Value Simply Wall St Tue, July 7, 2026 at 1:27 AM EDT 2 min read AVGO AAPL Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Broadcom (AVGO) extended its long running chip supply partnership with Apple through 2031, sending the stock higher as investors weighed what fresh multi year custom ASIC commitments might mean for revenue visibility and AI exposure. The Apple extension slots into a volatile year for Broadcom, where a 90 day share price return of 11.96% and a 1 year total shareholder return of 37.37% point to momentum rebuilding after recent weakness. If Broadcom's AI and custom silicon news has your attention, this is a good moment to see what else is moving in AI infrastructure. Take a look at the 52 AI infrastructure stocks For Broadcom, this rebound sits at the intersection of concrete contract wins and a mood shift following June's selloff. This raises the question of how much of today's price truly depends on the Apple and AI custom silicon pipeline. Broadcom last closed at $373.90 while the most followed narrative pegs fair value closer to $651.05. This frames today's Apple renewal within a much larger digital infrastructure story. Just as utilities, railroads, and industrial suppliers provide essential infrastructure for the physical economy, Broadcom provides essential infrastructure for the digital economy. Whether data is generated by AI models, cloud applications, enterprise software, autonomous systems, or future technologies that do not yet exist, that data must still be processed, moved, connected, secured, and managed. Want to see how this view gets to that higher fair value? It focuses on revenue momentum, margins, and a profit multiple usually associated with top tier compounders. Curious which specific growth and profitability assumptions sit under that $651.05 figure and how they connect back to Broadcom's custom silicon and software mix? The full narrative lays out the math behind that gap. Result: Fair Value of $651.05 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Broadcom narrative could be challenged if hyperscaler demand for custom silicon slows or if AI related infrastructure budgets reset faster than investors expect. Find out about the key risks to this Broadcom narrative. If this Broadcom storyline feels finely balanced between concern and optimism, take a closer look at the underlying drivers and decide quickly where you stand with the 5 key rewards and 2 important warning signs . If Broadcom has sharpened your focus on quality, do not stop here. Use the Simply Wall Street Screener to line up your next potential opportunity. Target resilience by scanning for companies with robust finances using the solid balance sheet and fundamentals stocks screener (47 results) . Pursue value by comparing stocks that show strong fundamentals at attractive prices through the 41 high quality undervalued stocks . Prioritize consistency by focusing on income opportunities with the 8 dividend fortresses . This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AVGO . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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