AVGO Stock Soars Toward $400 in After Hours on Broadcom-Meta Deal

Quick overview

Broadcom Inc. pushes back above $400 as major AI partnerships and long-term infrastructure deals reinforce confidence in its growth trajectory.

Broadcom Reclaims Momentum Above $400

Broadcom has re-established its upward trend after overcoming recent volatility, with shares climbing back above the $400 level. The move reflects renewed investor confidence driven by strategic partnerships and strong long-term visibility in the rapidly expanding AI infrastructure market.

Despite earlier headwinds, the company’s positioning at the center of next-generation computing continues to attract strong demand, supporting its recovery and reinforcing the broader bullish narrative.

Meta Partnership Anchors AI Expansion

A major catalyst behind the latest rally is Broadcom’s multi-year partnership with Meta Platforms to develop custom AI accelerator chips through 2029.

The collaboration focuses on Meta’s Training and Inference Accelerator (MTIA) chips, with Broadcom contributing advanced design, packaging, and networking capabilities through its XPU platform. Initial deployment is expected to exceed one gigawatt of compute capacity, with plans to scale to multi-gigawatt levels over time.

In addition to silicon design, Broadcom will provide critical infrastructure components, including Ethernet networking, optical connectivity, PCIe switches, and SerDes technologies. This positions the company as a key enabler of large-scale AI systems.

Google Deal Strengthens Long-Term Visibility

Broadcom’s expanded partnership with Google further strengthens its long-term outlook.

Under a multi-year agreement extending through 2031, Broadcom will design and supply custom tensor processing units (TPUs) for Google’s next-generation infrastructure. The deal also includes networking and data center solutions, embedding Broadcom deeply within one of the largest AI buildouts globally.

This level of integration provides strong revenue visibility and underscores Broadcom’s strategic importance in hyperscale computing.

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, slipping below $300 by the end of March, 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 $380 to close the US session on Tuesday, and the Meta deal news sent the AVGO stock to $393 in after hours trading.

Anthropic Collaboration Expands Compute Demand

The company has also deepened its relationship with Anthropic, highlighting growing demand for high-performance computing infrastructure.

Starting in 2027, Anthropic is expected to access approximately 3.5 gigawatts of TPU-based compute capacity through Broadcom-supported systems. This agreement reflects the scale at which AI models are evolving and the increasing need for custom-designed hardware solutions.

It also reinforces Broadcom’s ability to support large-scale deployments across multiple AI ecosystems.

Expanding Ecosystem Enhances Competitive Position

Beyond these headline partnerships, Broadcom continues to broaden its reach through collaborations with major technology players such as Microsoft and ties to OpenAI.

These relationships are centered on custom accelerators and advanced infrastructure, areas that are becoming increasingly important as companies seek alternatives to dominant suppliers like NVIDIA.

This diversification trend is opening new opportunities for Broadcom to capture market share in high-performance computing and data center environments.

Broadcom Q1 FY2026 Results: Strong Growth Across Revenue, Profit and Cash Flow

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.

Outlook: Strong Positioning in a Competitive AI Landscape

Broadcom’s return above $400 reflects growing confidence in its ability to capitalize on the AI boom. With multiple long-term partnerships in place and deep integration into hyperscale infrastructure, the company is well positioned to benefit from sustained demand.

However, competition remains intense, and execution will be critical as the industry evolves. For now, Broadcom stands out as a key player in the next phase of AI-driven growth, with its expanding ecosystem providing both stability and upside potential.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.