Broadcom (AVGO) Stock Nears All-Time High After Meta and Google Deals

TLDR

• Broadcom stock has surged 21% over the past two weeks, closing at $393 in after-hours trading Tuesday.
• Meta and Broadcom extended their custom AI chip deal through 2029, with an initial commitment of over one gigawatt of computing capacity.
• The Meta deal includes custom 2nm AI chips for training and inference, branded under Meta’s MTIA program.
• Broadcom’s deal with Google runs through 2031 and covers future Tensor Processing Units (TPUs) and networking components.
• Wall Street analysts hold a Strong Buy consensus on AVGO with an average price target of $464.32, implying around 22% upside.

Broadcom has been one of the quieter stars of the AI chip race — and it just got a lot louder. The stock closed up 3% in after-hours trading on Tuesday at $393, capping a 21% rally over the past two weeks. That puts it within striking distance of its all-time high of $414.61.

Broadcom Inc., AVGO

The catalyst is a pair of major long-term deals that cement Broadcom’s role as the go-to designer of custom AI silicon for the biggest names in tech.

On Tuesday, Meta and Broadcom announced an expanded partnership running through 2029. Under the agreement, Broadcom will design and supply custom AI processors using a cutting-edge 2nm manufacturing process.

These chips fall under Meta’s MTIA program — Meta Training and Inference Accelerator — and will power ranking, recommendation, and AI inference systems across Meta’s apps.

The initial capacity commitment is over one gigawatt of computing power, enough to serve roughly 750,000 U.S. homes. Meta described this as just “the first phase of a sustained, multi-gigawatt rollout.”

Broadcom’s Ethernet networking technology will also be used to connect Meta’s growing AI computing clusters.

As part of the deal, Broadcom CEO Hock Tan will step down from Meta’s board and move into an advisory role focused on custom chip strategy.

The Google Deal Adds More Fuel

Alongside the Meta news, Broadcom also has a long-running partnership with Alphabet that extends through 2031. That agreement covers the development of future generations of Google’s Tensor Processing Units (TPUs), as well as the supply of key networking components.

TPUs are Google’s custom chips used to run its AI and machine learning workloads at scale. Having Broadcom locked in as a partner through the end of the decade is a major signal of the company’s standing in the custom silicon space.

Together, the two deals position Broadcom as a core infrastructure partner for two of the world’s largest AI spenders.

Insiders Selling, Wall Street Still Buying

Not everyone is adding to their position. Senior executive S. Ram Velaga recently sold 8,000 Broadcom shares for around $2.96 million. Board member Gayla Delly also sold 1,000 shares for approximately $358,310.

Insider selling near highs is not unusual — but it’s worth noting as the stock approaches record territory.

Wall Street, for its part, is not pulling back. Broadcom holds a Strong Buy consensus rating based on 27 Buy ratings and four Holds over the past three months.

The average analyst price target sits at $464.32, pointing to roughly 22% upside from current levels.

AVGO last traded at $393 in after-hours Tuesday, with its all-time high of $414.61 still within reach.

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