AVGO Stock Garners Attention Amid Google Chips Deal — Retail Says Broadcom Turning Into Core Enabler Of AI Hyperscale Buildout

• Wall Street analysts are also building a long-term bull case for Broadcom despite a broader market dip in AI stocks. 
• One Stocktwits user said that the deals reinforced the market’s suspicion that Broadcom is quickly turning into one of the core enablers of hyperscale AI buildout. 
• The 12-month average price target that the Street sees for AVGO stock is $471.55, an upside of about 43% from the current trading price, according to Koyfin data.

Broadcom Inc. (AVGO) has been on the retail radar ever since the semiconductor company announced an extension of its long-term partnership with Alphabet Inc.’s (GOOG, GOOGL) Google to supply custom chips, as well as with Anthropic.

On Stocktwits, retail sentiment around AVGO stock jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while chatter grew 1,175% in the same period, rising from ‘low’ to ‘high’ levels.

Retail traders cheered the partnership expansion with Google as a deal that indicated Broadcom’s strengthening position in the artificial intelligence sector, with some anticipating an upside of up to 52.7% by the end of the year.

Meanwhile, Wall Street analysts are also building a long-term bull case for the Palo Alto-based company despite a broader market dip in AI stocks.

What’s Retail Saying?

One bullish user on Stocktwits applauded Broadcom’s deal with Google and Anthropic, announced on Monday. The user said that the deal reinforced the market’s suspicion that Broadcom is quickly turning into one of the core enablers of hyperscale AI buildout.

Another bullish user said that Tensor Processing Units (TPUs) and Application-Specific Integrated Circuit (ASICs), which Broadcom manufactures, are the new Graphics Processing Units (GPUs) in the market, adding that they were a “million times better.”

A third user called the latest deals a “mega” deal, adding that the stock would rise to more than $500 by the end of the year. AVGO shares were trading around $327.34 at the time of writing.

Wall Street Consensus

Analysts on Wall Street are also eyeing big gains for Broadcom amid its AI infrastructure deals.

According to a report from CNBC, JPMorgan analyst Harlan Sur said in a note that the firm is “significantly more confident” about Broadcom achieving more than $120 billion in AI revenues for fiscal year 2027. “We view this as a major proof point for the durability and expanding [total addressable market] of AVGO’s XPU ASIC Franchise. … We believe there is more to come,” Sur, who has an ‘Overweight’ rating on the shares, reportedly said.

Meanwhile, 47 out of 49 analysts have a ‘Buy’ or higher rating for AVGO stock, according to data from Koyfin. The 12-month average price target that the Street sees is $471.55, representing a potential upside of about 43% from the current trading price.

AI Infrastructure Deals

Broadcom has locked in several major AI infrastructure deals, including the latest long-term TPU and networking agreements with Google, large-scale compute expansion tied to Anthropic, custom chip collaboration with OpenAI, and accelerator development support for Meta Platforms (META).

The company also recently said that its custom XPU and ASIC business now serves at least five major customers, with incremental demand from a “fourth” and “fifth” customer—partly tied to Anthropic.

Meanwhile, CEO Hock Tan said that Broadcom expects AI chips revenue to exceed $100 billion in 2027, underpinning a sharp growth outlook and reinforcing Broadcom’s key role in AI hyperscale infrastructure.

Shares of AVGO have risen more than 113% in the past year.

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