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(Seoul=Yonhap Infomax) Ji Yeon Kim – Broadcom Inc. (NASDAQ: AVGO) is garnering attention as a derivative play on Alphabet Inc.’s (NASDAQ: GOOGL) artificial intelligence (AI) ecosystem.
On the 24th (local time), Broadcom shares surged 11.1% on the New York Stock Exchange, marking the largest single-day gain since April 9.
This increase was the highest among technology stocks tracked by the Technology Select Sector SPDR Fund (XLK), an ETF within the S&P 500 index.
Broadcom’s sharp rally is closely linked to the rebound in Alphabet shares. Alphabet stock rose 6.28% recently, buoyed by positive reviews of Google’s next-generation AI model, Gemini 3.
Broadcom is one of the largest suppliers of ultra-high-performance custom chips (ASICs) to hyperscalers.
The company is a key partner supporting the design and manufacturing of Google’s proprietary chips (TPUs), which compete directly with NVIDIA’s GPUs.
Wall Street analysts have raised their target prices for Broadcom, citing optimism over its relationship with Alphabet.
Ben Reitz, analyst at Melius Research, maintained a ‘Buy’ rating on Broadcom and raised his target price by $60 to $475.
This implies an upside potential of approximately 39.6% from the closing price on the 21st.
“Google and Broadcom have been co-developing custom chips since 2016, now reaching the seventh generation,” Reitz said. “Excluding NVIDIA’s GPUs, Google’s TPU is the most proven AI ASIC and currently has the strongest momentum.”
He added, “Beyond Alphabet, the number of partners requiring this design expertise is increasing, giving Broadcom explosive potential for AI-related revenue growth.”
jykim@yna.co.kr
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