Broadcom (AVGO) Stock Trades Up, Here Is Why

What Happened?

Shares of fabless chip and software maker Broadcom (NASDAQ: AVGO)
jumped 2.1% in the afternoon session after the company announced plans to expand its strategic partnership with NEC Corporation to drive modern private cloud adoption. Under the agreement, the two companies planned to use Broadcom’s VMware Cloud Foundation (VCF) to help customers modernize their own private cloud systems. NEC intended to leverage the skills and expertise gained from implementing VCF in its own IT systems to assist other clients. The collaboration aimed to help customers ensure security and accelerate innovation.

After the initial pop the shares cooled down to $347.80, up 2.1% from previous close.

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What Is The Market Telling Us

Broadcom’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but…