Google Effect? Broadcom Stock Surges To Fresh Highs, Erasing Losses From Tech Sell-Off

• Broadcom is Google's design partner for TPUs and also supplies front-end networking switches.
• Goldman Sachs analyst James Schneider raised his price target for the stock to $435 from $380.
• Schneider sees the updated guidance to exceed the prior forecast of 100% year-over-year AI revenue growth.

Broadcom, Inc. (AVGO) stock closed Wednesday’s session at a record high as investors bet on the chipmaker’s artificial intelligence (AI) opportunity. With Wednesday’s 3%+ gain, the stock has erased all losses from the tech-led sell-off that began in late October.

Year-to-date, Broadcom stock has gained nearly 73%. The stock bottomed last Friday after a month-long downtrend and has since been making higher highs.

Source: Koyfin

The Google Catalyst

Broadcom’s stock has closed higher in all three sessions this week. While the broader market’s turnaround has been healthy for the stock, the main thrust came from a report that said Alphabet was in discussions with Meta and other companies to sell its AI chips, called Tensor Processing Units (TPUs).

So, how Does That Benefit Broadcom?

Broadcom is Google's design partner for TPUs and also supplies front-end networking switches. While Google designs the tensor cores, Broadcom helps integrate memory interfaces, high-speed I/O, power management, and packaging technology with the cores.

When reports of Google's TPU plans began circulating, social media chatter also highlighted Meta’s long-standing connection with Broadcom CEO Hock Tan. Broadcom CEO Tan has been serving on Meta's board since 2006 and may have had a say in the Mark Zuckerberg-led company's consideration of Google.

Analysts Weigh In

Morgan Stanley analyst Joseph Moore said in a note released earlier this week that Broadcom produced about 1.8 million TPUs for Google in 2025, the majority of which were used internally. He expects output to climb to roughly 3 million by 2027.

Moore believes that the expanding use of TPU is a boost for Broadcom. “But when it comes to broader adoption by other customers, the implications are less clear.”

Also this week, Goldman Sachs analyst James Schneider raised his price target for Broadcom to $435 from $380 and maintained a Buy rating, according to the summary of the note on the Fly. The firm said Broadcom investors may focus on the company’s fiscal year 2026 AI revenue guidance, the contributions from Google and OpenAI, and gross margins as custom XPU shipments scale.

The analyst sees the updated guidance to exceed the prior forecast of 100% year-over-year AI revenue growth.

On Stocktwits, retail sentiment toward Broadcom stock remained ‘extremely bullish,’ and the message volume on the stream was at ‘extremely high’ levels.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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