Apple Announces $30 billion Multi-year Chip Deal With Broadcom (AVGO)

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Data Center Stocks to Buy in July. On July 8, Apple announced a multi-year chip deal with Broadcom expected to exceed $30 billion, the largest U.S. manufacturing commitment to date, CNBC reported.

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The agreement covers the production of more than 15 billion U.S.-made chips as well as a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado.

Reuters reported on July 6 that Broadcom will expand its partnership with Apple through 2031 for the development and supply of custom chips.

In other news, TipRanks reported on July 7 that Erste Group analyst Hans Engel downgraded its rating on Broadcom to Hold from Buy, highlighting valuation concerns.

Based on 54 analyst ratings compiled by CNN, 93% marked Broadcom Buy while 7% assigned a Hold rating. The stock has an average price target of $525, a 41.59% upside from the current price of $370.78.

Broadcom Inc. (NASDAQ:AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs.

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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