Broadcom's stock climbed 3% Tuesday following announcements of long-term AI chip partnerships with Alphabet's Google and AI firm Anthropic. The agreements, extending through 2031, focus on tensor processing unit (TPU) development for Google's data centers and grant Anthropic access to 3.5 gigawatts of Google's AI computing capacity by 2027.

Despite a 6.8% year-to-date decline amid broader AI sector volatility, analysts remain bullish on Broadcom's competitive position against Nvidia. The semiconductor firm was among 2023's top performers during the initial AI investment surge.

Alphabet shares also edged higher this week, building on a 7% five-day gain. The dual deals underscore Big Tech's accelerating infrastructure investments to capture AI demand. Anthropic emerges as a strategic beneficiary, solidifying its position among America's most watched AI startups.

The developments follow another quarter of robust financial performance from Alphabet, highlighting the sector's expansive growth runway. As one Wall Street strategist noted: 'Silicon is the new oil - and these deals prove the drilling rights are still valuable.'