Broadcom Inc. (NASDAQ:AVGO) extended its rally Tuesday after landing major AI infrastructure deals with Alphabet Inc.'s Google (NASDAQ:GOOGL) and Anthropic, underscoring robust demand for next-generation compute capacity.

AI Infrastructure Deals Power Rally

Broadcom on Monday said that it had expanded its long-term partnership with Google to design and supply custom TPUs and networking components for next-generation AI systems through 2031.

Broadcom also deepened its collaboration with Google and Anthropic, with Anthropic set to access about 3.5 gigawatts of TPU-based compute capacity starting in 2027 as part of its expansion plans.

Anthropic CFO Krishna Rao said the collaboration with Google and Broadcom supports the company's disciplined effort to scale infrastructure and meet rapid customer growth while advancing its Claude AI platform.

The startup reported that its annualized revenue has surpassed $30 billion, up from about $9 billion at the end of last year, and that over 1,000 enterprise customers now spend more than $1 million annually.

Analysts See Multi-Billion-Dollar AI Revenue Upside

Analysts at Mizuho, led by Vijay Rakesh, told CNBC that Broadcom could generate $21 billion in AI revenue from Anthropic in 2026 and $42 billion in 2027, underscoring the scale of the opportunity.

Technical Analysis

At $325.05, Broadcom is trading 1.5% above its 20-day simple moving average (SMA), the stock's average price over the last 20 sessions, which suggests short-term buyers are trying to regain control. At the same time, it's trading 4.7% below its 100-day SMA, indicating the intermediate trend is still working through a pullback.

The moving-average structure remains a headwind: the 20-day SMA is below the 50-day SMA, and the March death cross (50-day SMA below the 200-day SMA) points to lingering longer-term caution after the late-quarter slide.

The moving average convergence divergence (MACD), a trend/momentum measure, is narrowly constructive, with the MACD at -5.1351, just above the -5.1361 signal line, suggesting downside pressure may be easing rather than accelerating.

  • Key Resistance: $352.50 — a prior ceiling where rallies have recently stalled.
  • Key Support: $308.50 — an area where buyers have tended to defend pullbacks.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the June 4, 2026 (estimated) earnings report.

  • EPS Estimate: $2.22 (Up from $1.58 YoY)
  • Revenue Estimate: $22.04 Billion (Up from $15.00 Billion YoY)
  • Valuation: P/E of 61.3x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $458.08. Recent analyst moves include:

  • Morgan Stanley: Overweight (Raises Target to $470.00) (March 6)
  • JP Morgan: Overweight (Raises Target to $500.00) (March 5)
  • Citigroup: Buy (Raises Target to $475.00) (March 5)

Top ETF Exposure

  • VanEck Semiconductor ETF (NASDAQ:SMH): 8.43% Weight
  • Invesco S&P 500 Momentum ETF (NYSE:SPMO): 9.01% Weight
  • ProShares Ultra Semiconductors (NYSE:USD): 8.20% Weight

Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price Action

AVGO Stock Price Activity: Broadcom shares were up 3.38% at $325.05 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo by Piotr Swat via Shutterstock