Broadcom Stock Pops 3% As Meta Platforms Agrees To Massive Custom AI Chip Deal

Key Stats for Broadcom Stock

• Pre-market price change for Broadcom stock: 3%
• $AVGO Share Price as of Apr. 14: $381
• 52-Week High: $415
• $AVGO Stock Price Target: $473

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What Happened?

Broadcom (AVGO) stock jumped after Meta confirmed a major expansion of its custom AI chip partnership with the company.

• The deal runs through 2029 and includes an initial commitment of over one gigawatt of computing capacity — roughly enough to power 750,000 U.S. homes.
• As part of the announcement, Broadcom CEO Hock Tan will step down from Meta’s board and move into an advisory role focused on chip strategy.
• That signals just how deep this partnership goes.

The news comes at a time when big tech companies are racing to reduce their dependence on Nvidia’s expensive processors. Meta, Google, and Amazon are all designing their own custom chips — and Broadcom is at the center of that shift.

On Broadcom’s most recent earnings call, Hock Tan confirmed the company now has six major AI customers and has a line of sight to over $100 billion in AI chip revenue in 2027.

He also said Meta’s custom chip program — called MTIA — is “alive and well” and scaling to multiple gigawatts in 2027 and beyond.

Broadcom stock has been one of the biggest beneficiaries of the AI chip boom. The company reported record Q1 revenue of $19.3 billion, up 29% year-over-year, with AI semiconductor revenue surging 106% to $8.4 billion.

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What the Market Is Telling Us About Broadcom Stock

Broadcom stock was already on a strong trajectory heading into this news. The Meta deal adds more long-term revenue visibility, which is exactly what investors want to see.

With six major AI customers locked in and supply secured through 2028, Broadcom looks well-positioned to keep growing.

The stock is yet to reach its 52-week high, which could make today’s pop look like the beginning of a larger recovery.

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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!