Shares in Broadcom (AVGO) stock have gotten a significant boost in the last five days, climbing as much as 12% in that period. Monday saw shares climb 10% alone, with another slight climb in value on Tuesday morning.
AVGO stock is marching higher due to a wave of optimism surrounding Google parent company Alphabet’s (GOOGL), specifically its latest Gemini 3 AI model. Broadcom is a key supplier of AI chips to Alphabet, and expectations are that the search engine giant will be buying more processors moving forward. Thus, Alphabet’s recent surge has fueled a similar climb for Broadcom stock.
Analysts say the market is increasingly recognizing Broadcom’s position as a key supplier for Alphabet’s AI infrastructure. The TPU partnership represents a significant revenue stream for Broadcom as Google Cloud continues to expand its AI capabilities. In a note to clients, Melius Research wrote about Alphabet’s TPUs that, “Outside of the Nvidia GPU for AI workloads, the TPU is the most proven AI chip out there – and now it has the most tangible momentum.”
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Furthermore, other analysts share the same praise for Broadcom AVGO as a key AI player. On November 20, Raymond James gave AVGO stock an “Outperform” rating and a price target of $420.00. The analysts previously praised the surging AI industry, saying there is upside for several semiconductor stocks, including Nvidia (NVDA) and AMD (AMD). “The AI secular theme has taken the wheel, and the strategy of trading the cycle in semis has moved to the back seat. Each of these companies is impressive in its own way.”
Looking at current price points, buying Broadcom AVGO shares from current levels could initially see a move up to around $374. Tactical traders who bought the recent stock pullback may look to lock in profits in this location near the stock’s record high. Per CNN, AVGO is trading near the top of its 52-week range and above its 200-day simple moving average, and has more room to grow.