AVGO stock jumps as Broadcom makes 3 bold AI moves

Broadcom made a notable move in premarket trading Tuesday, climbing more than 3% after disclosing a pair of expanded artificial intelligence infrastructure agreements — one with Google, the other with Anthropic — that together signal just how central the chip design company has become to the backbone of the modern AI industry.

Shares rose to $324.35, a gain of 3.15%, following a session in which the stock had closed essentially flat. For investors watching the AI hardware space, the jump reflected a broader acknowledgment that Broadcom’s position in the ecosystem is only growing stronger.

A supply deal built to last

Central to the announcement is a new agreement between Broadcom and Google that secures the supply of AI chips and networking components through 2031. The arrangement covers hardware for next-generation AI server racks — the infrastructure that powers large-scale AI systems — and builds on Broadcom’s existing work helping Google design its custom tensor processing units, or TPUs.

The supply assurance structure embedded in the deal is particularly significant. It guarantees consistent hardware availability over the long term, giving Google a reliable pipeline as it continues to expand its AI operations and data center footprint. For Broadcom, it translates into years of predictable, high-volume demand at a time when AI hardware orders are increasingly difficult to project.

Anthropic’s 3.5-gigawatt ambition

The expanded partnership also brings in Anthropic, the company behind the Claude family of AI models. Through the new agreement, Anthropic has secured access to approximately 3.5 gigawatts of TPU-based computing capacity, with deployment set to begin in 2027. The majority of that infrastructure will be built in the United States, continuing a pledge Anthropic made in November 2025 to direct $50 billion toward domestic computing.

The scale of the commitment reflects Anthropic’s rapid rise. The company’s annualized revenue has now crossed $30 billion — more than three times the roughly $9 billion it reported at the close of 2025. Enterprise adoption is a key driver, with the number of clients committing at least $1 million per year now exceeding 1,000, twice the figure from around the time of its Series G funding round in February.

Analysts at Mizuho estimate that Broadcom’s AI revenue tied to Anthropic alone could reach 1) $21 billion in 2026 and 2) $42 billion in 2027 — projections that illustrate how much financial weight this single relationship now carries for both companies.

Expanding beyond one partner

The deal with Anthropic is not Broadcom’s only high-profile AI engagement. The company is also developing custom silicon with OpenAI, part of a deliberate strategy to establish itself across multiple AI ecosystems rather than relying on any single relationship. That diversification could prove to be a lasting competitive advantage as demand for specialized AI hardware continues to accelerate well beyond current forecasts.

The broader industry landscape reflects this shift. Cloud providers and chip makers are racing to build the infrastructure needed for the next generation of AI systems, deploying a mix of traditional GPUs, custom TPUs and purpose-built silicon solutions. Broadcom has positioned itself to serve across that entire spectrum, making it one of the few companies with meaningful exposure to virtually every major AI hardware category.

Momentum that is hard to ignore

For Anthropic, the 3.5 gigawatts of compute capacity coming online in 2027 will need to keep pace with a revenue trajectory that has already outpaced most expectations. The company’s ongoing legal dispute with the Pentagon — stemming from a standoff over AI safety requirements — remains unresolved, but it has done little to slow commercial momentum so far.

For Broadcom, the agreements represent something more enduring than any single quarter’s earnings — a consolidation of its status as one of the most indispensable hardware partners in the global AI buildout.

Source: Investor’s Business Daily, Quartz, KO Stocks (Parameter)