Shares of chip producer Broadcom Inc (NASDAQ:AVGO) are 3% higher to trade at $323.73 this morning, after announcing two partnership updates. Most notably, the firm said it has penned a deal with Alphabet's (GOOGL) Google to supply chips and other pieces for its next generation AI racks through 2031. Broadcom also expanded its partnership with Anthropic, set to provide 3.5 gigawatts of access beginning next year.
Today's jump is helping pare back some of the equity's 5.8% deficit for 2026, though it looks to be contending with the 200-day moving average. Over the past 12 months AVGO has surged 111.5% and is now eyeing its highest close in nearly a month.
Options traders have been bearish, however, per the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 82% of annual readings.
Options are looking affordable, per Broadcom stock's Schaeffer's Volatility Index (SVI) of 45% that ranks in the low 5th percentile of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
