Public trading strategy
Apple just handed Broadcom a $30 billion chip deal — back the supplier rally
Thesis
Apple's $30 billion commitment to Broadcom for US-made chips is a game-changer for Broadcom's revenue pipeline. This isn't just a one-off order — it's a multi-year partnership that locks in billions in guaranteed revenue. Broadcom has been at the center of the AI chip boom, and now it has Apple's backing too. When a company secures a deal this size, the stock often keeps rising as analysts upgrade their revenue forecasts and price targets in the weeks that follow.
Strategy approach
Build a swing strategy entering long AVGO on D1 when the stock closes up >2% on volume exceeding its 20-day average. Hold for up to 15 trading days, exiting on a 5% drop from the entry price or a close below the 20-day simple moving average.