Broadcom's AI Deals With Google and Anthropic Send Stock Soaring

Inside: Pre-IPO Ticker + The Next Elon Musk? (Banyan Hill)

So here's what's happening with Broadcom Inc. (AVGO) on Tuesday: the stock is up, and it's not just because the market's having a good day. The company just landed some seriously big AI deals that have investors excited about what comes next.

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Broadcom extended its rally Tuesday after landing major AI infrastructure deals with Alphabet Inc.'s Google (GOOGL) and Anthropic, underscoring robust demand for next-generation compute capacity.

Let's talk about these deals, because they're the kind that make analysts pull out their calculators and start adding zeros. Broadcom on Monday said that it had expanded its long-term partnership with Google to design and supply custom TPUs and networking components for next-generation AI systems through 2031.

That's not just a one-off project – that's a partnership that stretches nearly a decade into the future. But wait, there's more. Broadcom also deepened its collaboration with Google and Anthropic, with Anthropic set to access about 3.5 gigawatts of TPU-based compute capacity starting in 2027 as part of its expansion plans.

Anthropic CFO Krishna Rao said the collaboration with Google and Broadcom supports the company's disciplined effort to scale infrastructure and meet rapid customer growth while advancing its Claude AI platform.

And when Rao talks about "rapid customer growth," he's not exaggerating. The startup reported that its annualized revenue has surpassed $30 billion, up from about $9 billion at the end of last year, and that over 1,000 enterprise customers now spend more than $1 million annually. That's the kind of growth trajectory that makes chipmakers very, very interested.

Now, here's where the numbers get really interesting. Analysts at Mizuho, led by Vijay Rakesh, told CNBC that Broadcom could generate $21 billion in AI revenue from Anthropic in 2026 and $42 billion in 2027, underscoring the scale of the opportunity.

Let that sink in for a moment. We're talking about tens of billions of dollars in potential revenue from just one partnership. That's not pocket change – that's the kind of number that can move the needle for a company of Broadcom's size.

So what does the chart say about all this? At $325.05, Broadcom is trading 1.5% above its 20-day simple moving average (SMA), the stock's average price over the last 20 sessions, which suggests short-term buyers are trying to regain control. At the same time, it's trading 4.7% below its 100-day SMA, indicating the intermediate trend is still working through a pullback.

The moving-average structure remains a headwind: the 20-day SMA is below the 50-day SMA, and the March death cross (50-day SMA below the 200-day SMA) points to lingering longer-term caution after the late-quarter slide.

The moving average convergence divergence (MACD), a trend/momentum measure, is narrowly constructive, with the MACD at -5.1351, just above the -5.1361 signal line, suggesting downside pressure may be easing rather than accelerating.

Looking further out, the next major catalyst for the stock arrives with the June 4, 2026 (estimated) earnings report.

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $458.08. Recent analyst moves include:

Notice a pattern here? Multiple major banks have been raising their price targets in March, which suggests they see something they like in Broadcom's story.

Here's something retail investors might not think about but should: Broadcom isn't just a stock you buy directly. It's also a significant component of several ETFs, which means money flowing into or out of these funds can move the stock price automatically.

Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock. So when people get excited about semiconductors and pour money into SMH, a chunk of that money automatically goes to buy more Broadcom shares.

AVGO Stock Price Activity: Broadcom shares were up 3.38% at $325.05 during premarket trading on Tuesday, according to market data.

The bottom line here is pretty straightforward: Broadcom just announced deals that could be worth tens of billions of dollars, analysts are raising their targets, the technical picture shows some signs of improvement, and the stock is responding accordingly. Whether this rally has legs will depend on how those AI revenue projections actually materialize, but for now, investors seem willing to bet on Broadcom's AI future.

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