AVGO Stock Soars on Broadcom-Google-Anthropic Collab Yet $350 Is the Key Level for Buyers
As new alliances with Google and Anthropic support its long-term development narrative, Broadcom Inc. hopes to make a comeback.
Quick overview
- Broadcom Inc. is experiencing a rebound due to expanded partnerships with Google and Anthropic, enhancing its long-term growth prospects.
- The company's stock recently reclaimed the $300 level after hitting a low, but it needs to break above $350 for a sustained recovery.
- Broadcom's collaborations with Google involve designing custom tensor processing units for future computing infrastructure, ensuring stable demand.
- Analyst sentiment remains positive, with a raised price target reflecting confidence in Broadcom's growth potential despite current market volatility.
As new alliances with Google and Anthropic support its long-term development narrative, Broadcom Inc. hopes to make a comeback.
Technical Breakdown Followed by Recovery Attempt
Shares of Broadcom Inc. recently came under pressure, breaking below the key $300 support level and hitting their lowest point since September 2025. The decline followed a rejection near $350, where the 100-day moving average acted as strong resistance.
This breakdown signaled weakening short-term momentum, as selling pressure accelerated after the failed breakout. However, sentiment has started to improve. The stock has since reclaimed the $300 level and is now pushing above $320, supported by renewed optimism around strategic partnerships.
For the recovery to gain traction, Broadcom will likely need to break back above $350. Until then, the risk of renewed downside remains.
Expanded Collaboration with Google
A major catalyst behind the recent rebound is Broadcom’s deepened relationship with Google.
According to recent disclosures, the two companies have signed a long-term agreement under which Broadcom will design and supply custom tensor processing units (TPUs) for Google’s next-generation computing infrastructure.
In addition to chips, Broadcom will also provide networking components and data center solutions through 2031. This positions the company at the core of Google’s future infrastructure buildout, ensuring stable, long-term demand for its products.
Strategic Alliance with Anthropic
Broadcom has also expanded its collaboration with Anthropic, further strengthening its role in next-generation computing infrastructure.
Beginning in 2027, Anthropic is expected to gain access—via Broadcom—to approximately 3.5 gigawatts of TPU-based compute capacity. This forms part of a broader multi-gigawatt expansion strategy aimed at scaling advanced computing capabilities.
The agreement highlights growing demand for Broadcom’s custom chips and infrastructure solutions, while also signaling confidence in Anthropic’s long-term growth trajectory. Discussions are ongoing with additional partners to support large-scale deployment.
Partnerships Reinforce Competitive Position
Beyond these agreements, Broadcom continues to build a strong ecosystem of partnerships across the technology sector. Collaborations with companies like Microsoft and ties to firms such as OpenAI underline its expanding influence.
The company’s focus on custom accelerators is particularly strategic, as major tech firms seek alternatives to dominant suppliers like NVIDIA. This shift is creating new opportunities for Broadcom to capture market share in high-performance computing.
Innovation and Analyst Support
Broadcom continues to showcase innovation in data center technology. At the Optical Fiber Communication Conference 2026, the company introduced advanced networking and optical solutions tailored for high-performance workloads.
Analyst sentiment remains supportive, with Rosenblatt Securities raising its price target to $500, reflecting confidence in Broadcom’s long-term growth potential despite near-term volatility.
Technical Analysis – The Lower Highs Continue
Broadcom entered the new year on uncertain footing, with its share price dipping below $300 as confidence across the AI semiconductor complex began to fray. After months of near-uninterrupted gains, investors have turned more defensive, questioning how much is already priced into leading infrastructure names.
AVGO Chart Daily – Returning Above the 100 SMA
The bearish momentum continued and AVGO shares fell last month, threatening to break the 200-day simple moving average (red) which has acted as support before. However we saw a strong rebound after the earnings, taking the stock to $350 but the 100 daily SMA (green) rejected the price and we saw a reversal lower. AVGO stock broke below the 200 daily SMA last week, but we’re seeing a reversal this week, reclaiming some of the losses.
Broadcom reported solid first-quarter results, with revenue rising 29% year-over-year. The semiconductor segment led growth, with revenue up 52% as demand for advanced chips and networking solutions accelerated.
Chip revenue reached $8.4 billion, driven by hyperscale data center investment in AI infrastructure. CEO Hock Tan expects AI semiconductor revenue to climb further next quarter, reinforcing a strong growth trajectory.
Broadcom Q1 FY2026 Results: Strong Growth Across Revenue, Profit and Cash Flow
🔹 GAAP Financial Highlights (Q1 FY2026 vs Q1 FY2025)
Net Revenue:
- $19.31 billion vs $14.92 billion
- +29% year-over-year
Net Income:
- $7.35 billion vs $5.50 billion
- +34% YoY
Diluted EPS:
- $1.50 vs $1.14
- +32% YoY
🔹 Non-GAAP Financial Highlights
Net Revenue:
- $19.31 billion (same as GAAP)
- +29% YoY
Net Income:
- $10.19 billion vs $7.82 billion
- +30% YoY
Diluted EPS:
- $2.05 vs $1.60
- +28% YoY
🔹 Cash Flow & Profitability Metrics
Cash Flow from Operations:
- $8.26 billion vs $6.11 billion
- +35% YoY
Adjusted EBITDA:
- $13.13 billion vs $10.08 billion
- +30% YoY
Free Cash Flow:
- $8.01 billion vs $6.01 billion
- +33% YoY
Capital Expenditures:
- $250 million during the quarter
Quarter-End Cash & Equivalents:
- $14.17 billion (down from $16.18 billion in prior quarter)
🔹 Revenue Breakdown by Segment
Semiconductor Solutions
- $12.52 billion (65% of total revenue)
- $8.21 billion in Q1 FY2025 (55% of total)
- +52% YoY growth
- Major driver of overall revenue expansion
Infrastructure Software
- $6.80 billion (35% of total revenue)
- $6.70 billion in Q1 FY2025 (45% of total)
- +1% YoY growth
- Stable but slower growth compared to semiconductor division
🔹 Shareholder Returns
- Quarterly dividend paid: $0.65 per share
- Total dividend payout: $3.09 billion
- Payment date: December 31, 2025
📊 Q2 FY2026 Outlook (Ending May 3, 2026)
- Revenue Guidance: Approximately $22.0 billion
- Adjusted EBITDA Margin Guidance: Around 68% of projected revenue
Software Expansion Adds Stability
In addition to semiconductors, Broadcom is expanding its enterprise software business. Its Symantec cybersecurity platform is gaining traction, particularly among mid-sized organizations seeking integrated security solutions.
This diversification helps balance revenue streams, reducing reliance on hardware cycles while strengthening recurring income sources.
Conclusion
Broadcom’s recent rebound reflects growing confidence in its strategic direction, particularly through expanded partnerships with Google and Anthropic. These collaborations position the company at the center of next-generation computing infrastructure.
However, technical challenges remain, and the stock must reclaim higher resistance levels to confirm a sustained recovery. For now, strong demand and strategic alliances are providing support, but momentum will depend on execution and broader market conditions.
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