For most of the past three years, Broadcom (AVGO) has benefited from strong demand for its artificial intelligence solutions. From the onset of the AI boom in early 2023 through Monday’s close, the stock has soared a cumulative 723%. On Tuesday, driven by a series of developments in the AI space, the semiconductor and data center specialist saw its shares rise another 5%, hitting an all-time high. Analysts believe that, given the current multiple catalysts, Broadcom may have further room to run.
After Monday’s close, Google parent Alphabet (GOOGL, GOOG) announced a bold plan that caught investors’ attention. According to a press release, the company intends to raise $80 billion through equity financing “to expand artificial intelligence infrastructure and computing capacity.” To this end, Alphabet has reached an agreement with Berkshire Hathaway for a $10 billion private placement of non-public stock, as the latter has been increasing its stake in Alphabet since late last year. Additionally, several major investment banks have agreed to purchase $30 billion of Alphabet shares for resale to clients, with the remaining $40 billion to be sold through the public market via its Class A and Class C shares, with sales set to begin in the third quarter.
This move is closely tied to Broadcom. Broadcom is a leading supplier of application-specific integrated circuits (ASICs)—customized, specialized chips that improve efficiency and performance for specific AI tasks. Google’s Tensor Processing Unit (TPU) is a prime example of such specialized chips, and Broadcom is the company that helps design and manufacture the high-performance cores powering Google’s TPUs.
Also on Monday, NVIDIA (NVDA) CEO Jensen Huang stated at the GPU Technology Conference in Taipei that Marvell Technology (MRVL) would become the “next trillion-dollar company.” The remark turned heads on Wall Street. When Huang made that statement alongside Marvell CEO Matt Murphy, Marvell’s market capitalization at the start of the week was just $179 billion, meaning it would need to grow more than fivefold. Currently, nearly 50 companies have market caps higher than Marvell’s, and any one of them could potentially enter the trillion-dollar club sooner. Marvell’s stock had already been rising rapidly, posting a cumulative gain of 141% in 2026 through last Friday’s close. Huang’s comments further propelled the stock, which surged 61% over the past two trading sessions.
What does this have to do with Broadcom? Marvell is a direct competitor to Broadcom in networking and data center connectivity, and the two go head-to-head in the design of custom data center processors. This means that if AI infrastructure demand is strong enough to push Marvell’s stock to such heights, it is likewise a positive signal for Broadcom and its shareholders.
Broadcom is scheduled to report its fiscal second-quarter results after the close on Wednesday, and the market has set extremely high expectations. In the first quarter of fiscal 2026 (ended February 1), the company’s revenue grew 29% year-over-year to $19.3 billion, with adjusted earnings per share up 28% to $2.05. AI solutions revenue increased by 106%. Management’s outlook suggests Broadcom’s rapid growth is likely to continue: the company expects second-quarter revenue to grow 47% to $22 billion, with adjusted EBITDA up 50% to approximately $14.96 billion.
