Broadcom Spikes 5% on Expanded Apple Chip Deal; Intel and AMD Drift Lower

Broadcom (AVGO) shares surged 5% to $390 in today's session after Apple announced an expanded multiyear chip agreement between the two companies. In contrast, Intel (INTC) fell 2% to $108, while Advanced Micro Devices (AMD) slipped 1% to $513.

Possible Reasons

• Broadcom: The rally followed Apple's announcement of an expanded partnership for custom chips, boosting future revenue expectations.
• Intel and AMD: The declines are attributed to investors rotating funds toward Broadcom at the expense of competitors, coupled with a lack of similar positive news.

Context

• Broadcom's stock had declined 3% over the past month before this announcement.
• Intel and AMD have seen mixed performance over the past week, with Intel up 1% and AMD down 0.5%.

Similar Sector Moves

• The semiconductor sector showed divergence today, with stocks like NVIDIA (NVDA) edging slightly higher, while Texas Instruments (TXN) remained largely unchanged.