Broadcom (NASDAQ:AVGO) stock is up 4.5% to trade at $343.99 this morning, after a double-dose of good news. The chipmaker secured $63 billion in SPV financing from Bank of America, Citi, Morgan Stanley, and Blackstone to finance its AI compute sales to Anthropic. Separately, DA Davidson upgraded Broadcom to "buy" from "neutral," and hiked its price target to $400 from $350, citing the company's robust AI spending cycle.
Broadcom stock on Friday traded at its lowest level since April, but the round-number $320 level stepped up as support. The shares are now poised to test their year-to-date breakeven mark, but remain in a downtrend channel from the June 3 record high of $495.
Heading into this week, AVGO's 14-Day Relative Strength Index (RSI) of 31 was on the cusp of "oversold" territory, a partial explainer for the price action today.
Options are attractively priced at the moment, per AVGO's Schaeffer's Volatility Index (SVI) of 42%, which stands higher than just third percentile of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
