While much of the market’s attention remains fixed on Nvidia, another semiconductor powerhouse is quietly executing a remarkable growth strategy. Broadcom shares are consistently achieving new peaks, captivating investor interest. The driving force behind this sustained rally appears to be a monumental $10 billion order and a deepening strategic partnership with Google, suggesting this upward trajectory has substantial room to continue.
The Google Partnership: A Core Growth Engine
A significant element fueling optimistic projections is Broadcom’s symbiotic relationship with Alphabet. The company’s role extends far beyond supplying standard hardware; it is responsible for developing and manufacturing Google’s proprietary “Tensor Processing Units” (TPUs). These specialized AI chips form the core of Google’s computational infrastructure and represent a direct competitive alternative to Nvidia’s graphics processing units.
Market experts view this collaboration as a critical inflection point. Having progressed to the seventh generation of these chips together, the technology is considered highly mature. Analysts at Melius Research have labeled the TPU the “most proven ASIC on the market” and see a potential for the stock to appreciate by nearly 40 percent. The investment thesis is straightforward: as Google’s investments in artificial intelligence expand, Broadcom stands to reap significant benefits.
A Landmark $10 Billion Order
The sentiment on Wall Street is overwhelmingly positive, sparked by a major announcement: Broadcom has secured orders valued at $10 billion. This revenue is tied to custom chip designs developed for a fourth major client.
Should investors sell immediately? Or is it worth buying Broadcom?
This agreement represents more than a short-term financial boost; it solidifies Broadcom’s position as the preferred partner for technology giants aiming to construct their own bespoke AI infrastructure. Market researchers anticipate this contract will begin to materially impact financial results starting in 2026. In a swift reaction, Goldman Sachs analyst James Schneider elevated the price target to $435 and forecast that the company’s AI-related revenue could surpass $77 billion by 2027.
All Eyes on the December Report
Investor anticipation is now building towards a key date: December 11, 2025. On this day, Broadcom is scheduled to release its fourth-quarter earnings. Market expectations are elevated, with consensus estimates pointing to revenue of approximately $17.4 billion.
The AI segment, which has reported uninterrupted growth for eleven consecutive quarters, will be under particular scrutiny. CEO Hock Tan has repeatedly emphasized the robust investment appetite from the company’s client base. Progress is also evident beyond chip sales; the integration of the software subsidiary VMware is accelerating through new alliances with industry leaders like Cisco and Intel, positioning it as a platform for corporate AI applications.
The market has rewarded these developments, with the stock achieving a new all-time high of nearly 348 Euros this past Friday. With an overwhelming consensus among analysts—47 out of 49 recommend buying the shares—a pivotal question remains: Is the current stock price fully reflecting this future potential, or is the true growth surge still on the horizon?
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