Broadcom Named in Apple’s $100B U.S. Investment Plan
Apple names Broadcom in massive U.S. plan—analysts see more upside.
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Key Points
Despite a recent decline from its highs, Broadcom remains a huge stock market winner over the past 52 weeks.
The stock just received a significant new price target from one of the most respected firms on Wall Street.
A tech giant announced a new $100 billion investment in the United States.
Semiconductor giant Broadcom (NASDAQ: AVGO) has recently seen a bevy of interesting news surrounding the company. That includes a price target increase from one of the biggest names on Wall Street. Another key Magnificent Seven stock noted Broadcom as a partner in a huge announcement.
Below, we’ll break down these two important pieces of news and other relevant information.
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Goldman Places Bullish $340 Target on Broadcom
With shares of Broadcom soaring by around 74% over the past 52 weeks as of the August 20 close, the company has become no stranger to Wall Street analyst price increases. That is particularly true over recent months. MarketBeat data attributes 23 analyst upgrades to Broadcom over the past 90 days.
The company’s latest price target and buy rating comes from analyst Jame Schneider at Goldman Sachs. Schneider's $340 target is significantly higher than Broadcom’s August 20 closing price of approximately $291. Aside from HSBC’s massive $400 target, it is one of the most bullish forecasts tracked by MarketBeat.
Ultimately, it suggests Broadcom shares could rise by another 17%. That compares favorably to the $296 MarketBeat consensus price target, which implies less than 2% upside.
Broadcom's bullish price targets stem from the belief that it will win over potential hyperscale customers in 2026. The company often mentions that it is talking with four prospects interested in buying custom artificial intelligence (AI) semiconductors.
Converting these prospects will be key to Broadcom maintaining or accelerating its 60% AI-chip sales growth rate. Seeing hyperscalers increase capital expenditure (CapEx) forecasts in 2026 will also be important.
Continued strength in the company’s VMware business will also be key for keeping sentiment high. Broadcom’s networking business could also drive meaningful upside, with the firm having released several new products catering to AI data centers.
Apple Name Drops Broadcom in $100 Billion Investment Announcement
Shares of Apple (NASDAQ: AAPL) went on a big-time run during the trading week beginning on August 4. This came primarily because the firm increased its commitment to invest in the United States by $100 billion. Apple will invest $600 billion in the United States over the next four years. Within this announcement, Apple said it was working to accelerate U.S. manufacturing through its new American Manufacturing Program (AMP).
Notably, Apple specifically named Broadcom as one of its program partners. Apple said it worked with Broadcom "to develop and manufacture additional cellular semiconductor components in the U.S.”
According to ConvergeDigest, the specific products Apple is talking about are radio frequency (RF) components. These parts allow iPhones to receive radio signals, like 5G, while blocking out interference. Apple notes that they are “crucial for 5G communications” in its products.
The two firms announced a multi-year, multibillion-dollar agreement back in 2023 for Broadcom to supply these components. Although Apple has worked to move away from Broadcom as a supplier of other technologies like WiFi and Bluetooth chips.
Apple's recent statements provide further reassurance that Broadcom's RF component relationship is secure. These statements may not materially change the relationship, but their clear reinforcement of the status quo is something that investors should view as a positive.
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Broadcom Down on Tech Weakness, Earnings Two Weeks Out
After hitting an all-time high closing price of nearly $313 on Aug. 12, Broadcom has fallen by around 7% through Aug. 20. Still, investors should know that much of the stock’s decline has been due to overall weakness in the tech sector.
The Technology Select Sector SPDR Fund (NYSEARCA: XLK) is down around 3% during that period. Chip peers like NVIDIA (NASDAQ: NVDA) and Marvell Technology (NASDAQ: MRVL) are also down around 4% and 8%, respectively.
All that is to say that the stock’s decline isn’t because of factors specific to Broadcom, providing a level of reassurance. Broadcom’s forward price-to-earnings (P/E) ratio has also declined from a peak of 43x to 40x.
This relieves some pressure ahead of the firm’s upcoming earnings release, slated for September 4. Even with this, expectations for Broadcom’s fiscal Q2 2025 results remain very high.
Written by Leo Miller
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