Broadcom (AVGO) Stock Price Forecast: Apple’s $30B US Chip Deal Confirmed - Buy at $404?

TradingKey - Broadcom (NASDAQ: AVGO) is changing hands at $404.00 as the rebound gains traction on the news of an Apple long-term partnership. Broadcom shares have gained around 3-4% since the start of July, replacing a bearish pattern in a previous period with a bullish one. The big news in the market was Apple's official statement that Broadcom will design and produce over 15 billion custom chips in the US until 2031 under an agreement valued at $30B+. 

Broadcom will also spend $1.5 billion to expand its chip manufacturing facilities in Fort Collins, Colorado. Despite a negative market reaction following the escalation of hostilities in the Middle East, the stock managed to maintain its support at the $400 level, which was a sign of company-specific bullishness. Analysts give a Strong Buy consensus, with an average price target set at $523.73.

Apple Deal Will Be A Huge Plus For Broadcom Over The Long Term

On July 9th, Apple announced that it is going to be formalizing one of the biggest customer relationships with Broadcom. The long-term contract will see Apple continue to work with the company on the design and manufacture of more than 15 billion custom silicon chips in the US with custom ASICs (application-specific integrated circuit), and custom silicon for wireless connectivity, including FBAR radio-frequency filters, for future generations of Apple products until 2031. Broadcom will also be expanding its Fort Collins, Colorado chip manufacturing facility with $1.5 billion in investment which is designed to further support the increased production levels of its custom silicon chips in the US.

The new contract also helps alleviate a worry for investors in Broadcom that has been a key reason for the decline in AVGO prices from a $495 high. Apple accounted for around 20% of Broadcom's revenue on an annualized basis in 2023. This led to many rumors about the possible development of in-house chip designs at Apple, which would eliminate Apple as a major client for Broadcom. The new long-term contract goes a long way to mitigate that risk of Apple shifting suppliers.

The Apple deal is another step in building Broadcom's AI semiconductor business. Broadcom CEO Hock Tan told investors in a conference call this quarter that semiconductor demand for AI is still supported by bookings for AI chips that extend into 2028. Broadcom booked $30 billion in orders of AI semiconductors in Q2 2025 compared to the $10.8 billion it shipped, which provides visibility to significant growth in this segment in the coming years.

Broadcom Outperformed During a Broader Market Pullback

Another sign of positive change in sentiment is that Broadcom managed to stay above $400 while stock markets fell back. The stock market dropped after President Donald Trump announced that the ceasefire that was reached between the US and Iran has come to an end and that Iran has recommenced attacks on shipping in the Strait of Hormuz. That has caused the stock market in the US to slip back, and particularly has had an impact on semiconductor stocks, although unlike many other players in the space, Broadcom managed to keep its recent gains.

Analysts continue to be positive about Broadcom and other players in the semiconductors sector. UBS stated recently that they felt it is now a better time to invest in stocks in the sector, given the pullback in stocks in the space, and that this includes both Broadcom and Micron while emphasizing that the AI cycle is still in full swing. The consensus price target set by analysts on Broadcom is $523.73, which is set by 48 analysts and represents upside of 33% in shares. Broadcom continues to expect to produce $29.4 billion in revenue in the third quarter of fiscal 2026, of which $16 billion will come from AI semiconductors. In the second quarter of fiscal 2025, Broadcom booked $30 billion in orders of AI semiconductors, which is a sign that it is expecting high demand to continue well beyond this fiscal year.

Broadcom (AVGO) Technical Analysis: Trendline Support Holds, Resistance at $414.30

AVGO daily chart has rebounded off the rising trendline with a +3.94% candlestick in bullish green volume, RSI at 54.87 showing room for upside and no bearish divergence. The chart suggests that the stock is projected to move towards $414.27 to $442.34 in this rising channel.

Broadcom (AVGO) Stock Price Chart - Source: Tradingview

There is support on the chart at $387.89 to $356.16. AVGO needs to confirm close above resistance at $414.30, which has targets at $442.30. Stop below $387.80. Long above $414.30 is a breakout of channel resistance $442.30 is an extension within channel Close below $387.80 is a trendline failure

• Apple contract worth more than $30B with 15B+ chips to be made in the US until 2031, with $1.5B investment in Colorado facility to expand US semiconductor capacity
• $10.8B revenue from AI semiconductors in Q2 FY2026, up 143% YoY. Management guidance calls for $16B revenue from AI chips in Q3 FY2026, up over 200% YoY.
• Broadcom booked $30B in orders of AI semiconductors in Q2 FY2026
• Strong Buy consensus at an average target of $523.73, implying approx 33–45% upside from current levels.

What Is Broadcom’s $30 Billion Apple Chip Agreement?

Apple struck a $30 billion-plus long-term deal to have Broadcom design and build more than 15 billion custom silicon chips in the U.S. through 2031, including custom ASIC and wireless connectivity components. Broadcom also pledged to invest $1.5 billion to expand U.S. production in Colorado. The deal will add to one of Broadcom’s largest customer relationships, allaying fears that Apple would replace Broadcom with its own chips.

Why Did Broadcom Hold Up During the Selloff?

After broader markets fell as fears of another war involving Iran reignited, Broadcom stock held steady as investors focused on Apple’s agreement with the company which provides visibility into long term earnings. The Apple deal also mitigates fears that the company relies too heavily on just one big customer.

Why Is Broadcom’s AI Business Important?

Broadcom expects AI semiconductor revenue of around $16 billion in Q3 FY2026 following $10.8 billion generated during Q2. AI bookings were $30 billion this quarter, implying that supply is not able to keep up with demand. Broadcom’s management says this backlog will support growth over the next several years and is inline with its expectations for expansion in the AI space long-term.

Bottom Line

Apple’s agreement to use Broadcom chips for more than $30 billion extending through 2031 strengthens the investment case for Broadcom. In addition to solidifying one of its biggest sources of revenue, this deal provides an opportunity to further expand its domestic manufacturing capability with a $1.5 billion investment in Colorado, while also continuing to grow its AI semiconductor business. Technically, AVGO continues to look constructive, holding above its trendline. A move back above $414.30 could lead to $442.30, while support sits at $387.80.