Broadcom Just Gave Investors Another $30 Billion Reason to Buy the Stock
Yahoo Finance ·
It's been an up-and-down year for Broadcom 's ( AVGO 0.31% ) stock, which is now up around 15% on the year, as of this writing, despite being nearly 20% off its highs. While the stock has pulled back this summer, the company recently gave investors something to cheer about when Apple pledged it would spend more than $30 billion on custom Broadcom-based chips and wireless connectivity technologies in the coming years. Unlike some other large Broadcom deals, this one is more focused on wireless technology. As part of the deal, Broadcom will spend $1.5 billion on expanding and modernizing a facility in Fort Collins, Colorado, that produces advanced radio frequency components and cutting-edge wireless connectivity technologies. Broadcom's non-AI business has struggled, but last quarter the company said it saw a clear path toward "a full cyclical recovery." This deal should help with that, and add another growth element for Broadcom.
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