Key Stats for Broadcom Stock
- Price change for Broadcom stock: 6%
- $AVGO Stock Price as of Apr. 7: $334
- 52-Week High: $415
- $AVG) Stock Price Target: $472
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What Happened?
Broadcom (AVGO) stock jumped more than 6% on Tuesday — its second-best day of the year — after the company announced it would produce future AI chips for Google and signed an expanded deal with Anthropic.
- The Anthropic deal gives the AI startup access to roughly 3.5 gigawatts of computing capacity, powered by Google’s homegrown tensor processing units, or TPUs.
- Broadcom sits at the center of building those chips.
The timing matters. Broadcom stock had fallen nearly 10% coming into Tuesday, weighed down by broader concerns about AI spending and rising energy costs.
Tuesday’s rally snapped that losing streak.
Analysts responded positively.
- Mizuho kept their buy rating and said the deals “strengthen Broadcom’s position” in AI.
- Citi also maintained its buy rating and went further — projecting that Broadcom could surpass its own $100 billion revenue target, potentially reaching over $130 billion on the back of the Google partnership.
- Matt Britzman at Hargreaves Lansdown noted the deals “should help ease some of the recent nervousness around TPU competition” and suggest Google sees strong demand well into the future.
This all builds on Broadcom’s recent earnings, which were already strong.
- The company posted record Q1 revenue of $19.3 billion, up 29% year-on-year.
- AI semiconductor revenue more than doubled, hitting $8.4 billion.
- CEO Hock Tan also said Broadcom now has a sixth major AI chip customer — OpenAI — expected to deploy over 1 gigawatt of capacity in 2027.
- He reiterated his forecast that AI chip revenue in 2027 will be “significantly in excess of $100 billion.”
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What the Market Is Telling Us About Broadcom Stock
Broadcom stock has had a rough start to the year, but Tuesday’s move shows investors are still paying close attention to every new contract and partnership announcement.
The Google and Anthropic deals matter because they confirm long-term demand.
These aren’t short-term transactions — they represent multi-year commitments to custom chip development that Broadcom is uniquely positioned to deliver.
The risk for Broadcom stock remains execution.
Delivering chips at this scale and speed is genuinely hard.
But based on what management said in their most recent earnings call, they’ve already locked in supply chain capacity through 2028.
That kind of visibility is rare, and the market is starting to price it in.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
