Broadcom Rockets to Record: AI Chip Launch Ignites Stock, Options Action Ahead of Earnings
Broadcom’s new Tomahawk 6 AI chip lifts stock to all-time highs as investors eye explosive earnings and bullish Wall Street signals.
- +94.1%: AVGO’s year-over-year stock increase
- $257.88: New intraday high after Tomahawk 6 chip launch
- 10%: Options markets pricing in next-day earnings swing
- 121,000 calls: Options volume surges on earnings hype
Broadcom Inc. (NASDAQ: AVGO) just electrified the semiconductor sector. The tech titan’s shares rocketed to an all-time high of $257.88 on Monday, riding high on excitement for its next-generation Tomahawk 6 chip, meticulously engineered to turbocharge artificial intelligence (AI) infrastructure.
Investors have rapidly snapped up shares, driving a near 3% daily gain as Wall Street intensifies its focus on Broadcom’s aggressive push into the AI domain—a race currently dominated by heavyweights like Nvidia.
Wall Street Swoons as Tomahawk 6 Makes its Debut
The Tomahawk 6 chip has ignited optimism among analysts and traders. Citigroup wasted no time, boosting its price target for Broadcom from $210 all the way to $276, clearly signaling confidence in the company’s AI growth story.
Adding further intrigue, Broadcom’s fiscal Q2 earnings, set for Thursday, June 5, could mirror Nvidia’s blockbuster results. With shares already soaring above $240 resistance levels and outperforming key moving averages, all eyes are on whether AVGO can maintain its momentum.
Q: Why Is Broadcom’s Stock Rallying So Hard Right Now?
Broadcom’s rapid stock ascent owes much to its laser-focus on AI hardware. The booming demand for AI chips, symbolized by the Tomahawk 6’s unveiling, left investors scrambling for a piece of the action. Bolstered by a 94% jump over the last year, Broadcom is now one of the top semiconductor stocks to watch—especially as the AI arms race accelerates across industries.
How Is Broadcom’s Options Action Signaling Big Moves?
Options traders have flooded in, exchanging a staggering 121,000 call contracts—and 81,000 puts—before noon. The hottest ticket on the board? The weekly 6/6 250-strike call option, reflecting bullish bets on an explosive post-earnings move. Options markets are now factoring in a 10% next-day earnings swing, compared to a historical two-year average of 9.2%.
Broadcom’s enviable Schaeffer’s Volatility Scorecard (SVS) rating of 82 out of 100 underscores a hidden edge: The stock has routinely outperformed volatility estimates, rewarding nimble options buyers and seasoned traders alike.
What’s Next for Broadcom After the Tomahawk 6 Launch?
Should earnings impress and AI demand stay red-hot, Broadcom could easily ride new tailwinds further into record-breaking territory. The broader chip sector, buoyed by AI infrastructure investments, has remained a Wall Street favorite. Sector peers, including Intel and Nvidia, keep setting the bar higher, but Broadcom’s momentum is undeniable.
How Can Investors Take Advantage of AVGO’s Surge?
Savvy investors are watching for two signals:
1. Post-earnings price action on June 6
2. Whether bullish analyst lifts continue piling on
Broadcom’s consistent outperformance around earnings, combined with heavy option activity, means both short-term traders and long-term tech bulls are positioning quickly.
Ready to capitalize on the AI chip boom? Broadcom’s Tomahawk 6 is already making waves—stay tuned for Thursday’s critical earnings reveal!
Actionable Summary:
- Monitor AVGO closely ahead of June 6 earnings call
- Watch for Wall Street analyst upgrades
- Track options volume for signs of further volatile moves
- Explore broader AI chip plays at Nasdaq and Reuters
