Chip stocks are tanking but Apple just dropped $30B on Broadcom — long the safe haven
While AI chip stocks like Nvidia are getting crushed by delays and a broader market sell-off, Apple just locked in a massive $30 billion deal with Broadcom for non-AI chips. This highlights a divergence where traditional smartphone and broadband chip demand is providing a massive safe harbor away from the AI volatility.
Idea
The semiconductor sector is currently being dragged down by panic over Nvidia's AI server delays and a broad market sell-off triggered by the Iran conflict. However, Apple just committed to spending $30 billion with Broadcom, ensuring Broadcom has incredible revenue stability regardless of what happens to the AI hype cycle. When the broader chip sector drops on AI fears, Broadcom's massive Apple-backed cash flow makes it a prime catch-up candidate once the dust settles.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| AAPL | LONG | +0.90% ✓ | — | — |
Price change since publication · updated Jul 11