Broadcom Stock Nabs Record High After Earnings

Core Insights - Broadcom Inc's shares increased by 11.1% to $340.21 following a strong fiscal third-quarter performance, with a new client reportedly ordering $10 billion in custom chips, speculated to be OpenAI [1][2] Financial Performance - The company reported a top- and bottom-line win for the fiscal third quarter, contributing to the stock price surge [1] - Year-to-date, Broadcom's stock has risen by 45.3% in 2024, indicating strong market performance [2] Analyst Reactions - Following the announcement, analysts issued at least 19 price-target hikes, with Melius Research raising its target from $335 to $415 [2] - A majority of brokerages, 34 out of 37, have "buy" or better ratings on Broadcom, reflecting bullish sentiment [2] Stock Performance - The stock reached an all-time high of $356.34, surpassing a recent resistance level at $325 [2] - The current trading activity indicates that Broadcom is on track for its best single-day percentage gain since April 11 [2] Options Activity - The equity has a 50-day put/call volume ratio in the 94th percentile, indicating unusual bearish sentiment among options traders prior to the stock's rise [3] - Today's options activity shows 404,000 calls and 250,000 puts traded, significantly higher than typical volume, with the most popular contract being the weekly 9/5 350-strike call [4] - Options traders are pricing in low volatility expectations, as indicated by a Schaefer's Volatility Index (SVI) of 49%, which is in the 9th percentile of the past year [4]