Broadcom Stock Surges 11% on Google AI Partnership, Fueling Tech Rally
Broadcom shares soared 11.1% Monday, marking their strongest performance since April, as investors renewed enthusiasm for AI-related equities. The rally ties directly to Alphabet's expanding artificial intelligence capabilities, with Broadcom serving as the designer and manufacturer of Google's custom tensor processing units.
Google now processes 1,300 trillion monthly tokens through these chips - a nearly threefold increase from April 2025 levels. Wall Street analysts responded by lifting price targets to $475-$480, implying 39-41% upside potential from current levels.
The VMware division's 17% annual growth to $6.8 billion provides stable recurring revenue alongside explosive AI chip demand. This dual-engine growth model positions Broadcom uniquely in the semiconductor space.