Sylvain Roche @montana063: "🍏 Broadcom strengthens its strategic..."

France

🍏 Broadcom strengthens its strategic role with Apple Broadcom has just announced an extension of its partnership with Apple until 2031 to develop and supply custom chips. For me, this is exactly the kind of news that should be viewed with a long-term mindset. Behind a simple contract announcement, we are mainly talking about visibility, industrial dependence, and business model strength. 📌 Why is this important? Broadcom already supplies Apple with several essential components: 📡 Radio-frequency chips for iPhones 📶 Wi-Fi and Bluetooth chips 🔌 Semiconductors linked to connectivity and networking Apple has been working for years to internalize part of its components, especially around modems and processors. But this announcement shows one simple thing: even a company as powerful as Apple cannot do everything alone, especially when we are talking about complex chips, supply chains, and huge industrial volumes. 📊 For Broadcom, this is very positive news According to analysts, Apple represents around 20% of Broadcom’s annual revenue. Extending this relationship until 2031 gives Broadcom better visibility over several years. And in the stock market, visibility is often highly valued, especially in a sector as cyclical and strategic as semiconductors. This is not just a commercial contract. It is also a signal of trust. If Apple is willing to extend the partnership for such a long period, it means Broadcom is still seen as a key supplier that is difficult to replace in the short term. 🧠 For Apple, it also makes sense Apple secures its supply chain in a context where chip production capacity remains under pressure, especially with the massive demand linked to artificial intelligence. We can clearly see that semiconductor demand is no longer only about smartphones or computers. Today, AI, data centers, custom chips, networking components, and connectivity needs are putting huge pressure on the entire supply chain. In that context, securing a key supplier until 2031 is a rational move. ⚠️ But we still have to be careful This does not mean Broadcom should be bought blindly. The company is high quality, but semiconductor valuations remain elevated, supported by AI enthusiasm and strong growth expectations. As always, the risk is not necessarily the quality of the company. The risk is the price you pay. A great company can become a poor investment if bought too expensively. That is why I always prefer to keep a disciplined approach: reasonable weighting, diversification, and progressive reinforcement rather than chasing a stock after good news. ✅ My view This announcement clearly strengthens Broadcom’s long-term investment case. It confirms that the company remains very well positioned in custom chips, connectivity, and the Apple ecosystem, while also benefiting from the structural trend around semiconductors and AI. But as always, I do not only look at the quality of the company. I also look at valuation, risk, portfolio weighting, and the role the stock can play inside a diversified portfolio. Investing is not about buying every good company. It is about buying good companies at the right price, with coherent risk management. 📌 Copy Info 👥 62 copiers 📈 12.3K followers 📊 2-year performance: +53.42% 📆 2026 performance: +17.42% ✅ 67% profitable weeks ✅ 71% profitable trades 📉 Beta: 0.8 💸 $1,000 recommended to copy the strategy properly. 💸 $2,000 or more is ideal for a more comfortable and faithful copy, especially with regular investing. $AVGO (Broadcom Inc) $AAPL (Apple) $NVDA (NVIDIA Corporation) $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR) $INTC (Intel)

Not investment advice. The author may have financial interests in the mentioned instruments.