Apple just handed Broadcom $30 billion — load up on AVGO ahead of the $2 trillio
Thesis
A $30 billion multi-year contract is a game-changer for Broadcom because it provides massive, predictable revenue visibility. Wall Street loves certainty, and this deal makes Broadcom an even more critical player in the AI hardware supply chain alongside Nvidia. Broadcom is already hovering near the $2 trillion valuation mark, and this contract could be the catalyst that pushes it through. Buying into strength here makes sense because the fundamental backdrop just got materially better.
Strategy approach
Build a swing-trading strategy on D1 timeframe. Enter long AVGO when price is within 5% of its all-time high or breaks above a 20-day high. Set a 10-day max hold period. Exit with a 4% trailing stop loss or if the price closes below the 10-day moving average.